Property Tax & Stamp Duty Property Tax & Stamp Duty Property Tax & Stamp Duty

Property Tax

In any business, location is important. In land scarce Singapore, the acquisition of a business property (be it a factory or a retail outlet) will bring along the burden of property tax, which may have considerable impact on the business’ bottom line.

Understanding how tax on business property is computed can help with planning for business expansion.

Stamp Duty

In recent years, there has been much development on the stamp duty front, including the introduction of seller’s stamp duty (“SSD”) in 2010, additional buyer’s stamp duty (“ABSD”) in 2011, and additional conveyance duty (“ACD”) in 2017. The highest marginal rate of buyer’s stamp duty (“BSD”) imposed in relation to residential real estate was also increased in 2018.

Transactions involving the sale of Singapore shares and Singapore immovable properties now attract stamp duty at rates ranging from 0.2% to 34.2%, which could be a deal-breaker if not properly managed.

Our team is acutely and intimately familiar with Singapore’s property tax and stamp duty regimes.

Led by a tax veteran who holds qualifications in real estate and valuation, among others, we can advise on all aspects of property tax as well as stamp duty implications. On property tax, this includes aspects concerning the understanding of the annual value of properties, appropriate methodologies to determine the annual value, and whether any item is chargeable to property tax and property tax relief.

Property Tax representations

• Negotiations with Inland Revenue Authority of Singapore to achieve a fair amount of property tax payable
• Appeals to the Valuation Review Board when settlement negotiations do not achieve the desired results

Application for relief/ remission of stamp duty

• Transactions involving related parties
• Conversion of companies to a Limited Liability Partnership (“LLP”)

Application for remission of ABSD/ ACD

• ABSD remission for real estate developers
• Where the immovable property is not used for residential purposes

Stamp duty dispute resolution

• Dispute on the applicability of SSD/ ABSD/ ACD
• Issues involving trust/ limited partnership/ LLP structures
• Characterisation of lease, licence and service agreements

Computing and filing of stamp duty/ Review of Agreements

• Transfer of Singapore shares
• Sale of Singapore immovable properties
• Lease of Singapore immovable properties
  

Singapore Tax Firm of the Year – Asia Tax Awards 2020, International Tax Review
Asia Tax Firm of the Year – Asia Tax Awards 2020, International Tax Review
Asia Tax Innovator of the Year – Asia Tax Awards 2020, International Tax Review
Tax Litigation and Disputes Firm of the Year – Asia Pacific Tax Awards 2021, International Tax Review
Regional Tax Compliance and Reporting Firm of the Year – Asia Pacific Tax Awards 2021, International Tax Review