The question posed by fellow property agent specialist was basically – ABSD remission and ABSD refunds, are they the same?
“ABSD refund vs ABSD remission, are the same?”
PropertyWiki Question of the week!
The question posed by fellow property agent specialist was basically – ABSD remission and ABSD refunds, are they the same?Answer: Yes and no. Here is a table for your easy reference:
ABSD remission
ABSD refund
Need not pay ABSD at all if meet certain criteria.
To be eligible for ABSD remission, the purchaser must be a citizen/PR* of the five counties under the Free Trade Agreement.
Otherwise, purchaser is doing a HDB Contra,
i.e. HDB change to HDB,
HDB change to EC.
Need to pay ABSD first, after which to apply for refund later.
To be eligible, conditions for the refunds are as follows:
Both 1st and 2nd property must be bought under matrimonial scheme.
At least one SC involved.
HDB must be sold 6 months from TOP (if the new property purchase is a BUC)
HDB must be sold 6 months from exercising OTP (if the new property purchase is a resale completed unit)
No purchase of 3rd property allowed within that period.
PropertyWiki Tip: If I sell my 1st property before new condo gets its TOP, can I claim back my ABSD too?
Answer: Absolutely.
A few agents asked this question. ABSD remission vs ABSD refunds, are they the same?
Yes, there’s a difference actually,
ABSD remission
ABSD refund
It means the buyer does not need to pay for the ABSD at all if he meets certain criteria.
In order to be eligible for ABSD remission the buyer may be a citizen/PR* of the five counties under the Free Trade Agreement.
Or they are doing a HDB Contra, ie HDB change to HDB, or HDB change to EC.
It means the buyer must pay for the ABSD first, then applies for a ABSD refund later..
In order to be eligible for ABSD refund
Conditions for the refunds are as follows:
Both first and second property must be bought under a matrimonial scheme.
There must be at least one SC involved.
Absd must be paid first.
Hdb must be sold 6 months from TOP (if the new property purchase is a BUC)
Hdb must be sold 6 months from exercising OTP (if the new property purchase is a completed)
No purchase of a third property allowed within that period.
Propertywiki tip 101: Another common question agents and clients will ask is : What if I sell my first property before the new condo TOP, can i claim back my ABSD too?
Ans: Yes
So you are still unsure? Do contact us if you have any further queries and we will do our best to answer it if it is not found anywhere here!
The question posed by fellow property agent specialist was basically – ABSD remission and ABSD refunds, are they the same?