Calculating Stamp Duty for Sale of Property in Singapore

1. Stamp Duty for Sale of Property

I’m referring to the IRAS website on Stamp Duty and you’re suppose to pay this tax if:

• You have purchased a HDB Flat
• You have purchased a completed property issued with Temporary Occupation Permit
• You have purchased a property under construction
• You have purchased a property by way of a sub-sale
• You have acquired properties an enbloc purchase

2. The Formula

Quick Calculation Formaula: Stamp Duty = Sale Price x 3% - SGD5,400

However, if the price of the property falls below SGD360,000, this would be inaccurate. Remember we also have to round up to the nearest hundred dollar before calculating.

Example

Peter bought a walk up apartment at the price of SGD500,000.00, his stamp duty fees will be [(SGD500,000 x 3%) - $5400] = SGD9,600

The real formula would be,

1% of the first SGD180,000, 2% of the next SGD180,000 and 3% of the remaining amount balance.

Let’s use the same formula for the above mentioned property Peter bought.

[3% of ( SGD500,000 - SGD180,000 - SGD180,000)] + (2% of SGD180,000) + 1% of (SGD180,000) = ( 3% of remaining SGD140,000 ) + (2% of SGD180,000) + (1% of SGD180,000) = SGD4,200 + SGD3,600 + SGD1,800 = SGD9,600

3. Person(s) Liable for Stamp Duty

Most of the time, the purchaser will be responsible for paying the stamp duty fees unless otherwise stated on the Sales & Purchase or Option to Purchase terms and conditions.

• The persons liable to pay stamp duty will be in accordance to the terms of the document. If the terms of the document are silent on this, under the Stamp Duties Act (Cap 312), the transferee or grantee has to pay stamp duty.

4. Timing of Payment of Stamp Duty

Please take note that upon execution of Sales and Purchase agreement in most cases, you’ll have to get your documents stamped within 14 days or within 30 days if you are overseas. Late stamping would be subjected to penalties for violating the Stamp Duties Act (Cap. 312)

• Penalties will be imposed on documents that are stamped late or for which stamp duty is underpaid.
• If the delay does not exceed 3 months, the penalty is $10 or equal to the amount of the deficient duty, whichever is higher.
• If the delay exceeds 3 months, the penalty is $25 or 4 times the amount of deficient duty, whichever is the higher.