Buyer’s Stamp Duty (BSD) is payable on acquisition of immovable properties, based on the higher of the consideration or market value. The BSD rates are also applicable to lease-related instruments where there is a lump-sum premium payable.
Prior to 20 February 2018, the same BSD rates are applied to both residential and non-residential properties as illustrated below.
- In an effort to reflect a more progressive tax system, the top marginal rate for residential properties would be increased to 4% with effect from 20 February 2018. The BSD rates for non-residential properties remain unchanged.
- In the case of a mixed-use or mixed-zoning property (with both residential and non-residential components), the new BSD rate of up to 4% will apply to the residential component whereas the existing top marginal rate of 3% will apply to the non-residential component.
- Stamp duty remission may be available under certain circumstances (e.g. acquisition made during transition period, acquisition of residential land for non-residential development etc.)