Today we received a query, that is relatively common especially from expats and new Singapore PRs.Imagine this – You wish to buy a S$900,000 property and as a Singapore PR, you would need to pay the buyer stamp duty (BSD) of 3% + 5% additional buyer stamp duty (ABSD). So for $900,000, the total stamp duty is $21,600 (BSD) + $45,000 (ABSD) = $66,600. The client was shocked and went, “Wrong! It’s $72,000!”
“Why are my stamp duty calculations wrong?”
Imagine this – You wish to buy a S$900,000 property and as a Singapore PR, you would need to pay the buyer stamp duty (BSD) of 3% + 5% additional buyer stamp duty (ABSD). So for $900,000, the total stamp duty is $21,600 (BSD) + $45,000 (ABSD) = $66,600. The client was shocked and went, “Wrong! It’s $72,000!”
So the final verdict, we are correct. How this is possible? IRAS giving discount to homebuyers?
The answer lies in the calculation breakdown table below
| Purchase Price or Valuation (whichever is higher) | BSD Rates for residential properties | BSD Rates for non-residential properties |
| First $180,000 | 1% | 1% |
| Next $180,000 | 2% | 2% |
| Next $640,000 | 3% | 3% |
| Remaining Amount | 4% (applies for above 1 Mil) | 3% |
For this client case, his BSD and ABSD is calculated like this.
| Buyer Stamp Duty | Additional Buyer Stamp Duty |
| $180,000 * 1% = $1,800 $180,000 * 2% = $3,600 $540,000 * 3% = $16,200Total: $1.8k + $3.6k + $16.2k = $21,600 |
$900,000 * 5% = $45,000 |
Total Stamp duty = $21,600 + $45,000 = $66,600
So what if this same PR makes a purchase of a S$1,100,000 property?
| Buyer Stamp Duty | Additional Buyer Stamp Duty |
| $180,000 * 1% = $1,800 $180,000 * 2% = $3,600 $640,000 * 3% = $19,200Remaining $100,000*4% = $4,000 Total: $1.8k + $3.6k + $19.2K + $4k = $28,600 |
$1,100,000 * 5% = $55,000 |
Total Stamp duty = $28,600 + $55,000 = $83,600