When a residential property is transferred into a living trust, buyer’s stamp duty is payable. Additional buyer’s stamp duty (“ABSD“) may also be payable, depending on the profile of the beneficial owners of the residential property transferred into the trust. The Singapore Government imposes ABSD on the transfer or sale and purchase agreements of residential properties in Singapore as part of the cooling measures on the purchase of residential properties.
On 8 May 2022, the Singapore Government announced changes to the ABSD regime by imposing ABSD at the rate of 35% for all conveyance, assignments or transfers on sale and purchase of residential properties into a living trust that occur on or after 9 May 2022 (regardless of whether there are identifiable beneficial owners of the residential properties) (“ABSD (Trust)“). ABSD (Trust) is to be paid upfront when the residential properties are transferred into the living trust, but is subject to remission if certain prescribed conditions are met.
This Update sets out a summary of the key changes to ABSD (Trust) and highlights some practical issues to note in determining the appropriate trust structure to hold residential properties for succession planning purposes.
For more information, click here to read the full Legal Update.
