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Singapore's Ministry of Finance has imposed a 35% additional buyer's stamp duty (ADSB) on top of buyer’s stamp duty (BSD) on any transfer of residential property into a living trust occurred on/after 9 May 2022.
This considers as a crackdown on HNW individuals who use opaque structures.
As a concession, a trustee may apply to Inland Revenue Authority of Singapore (IRAS) within 6 months after the instrument is executed for a refund of ABSD (Trust), provided that the following conditions are met:
1. All beneficial owners of the residential property are identifiable individuals; 2. Beneficial ownership of the residential property has vested in all of these beneficial owners at the time of property transfer into the trust; and 3. The beneficial ownership cannot be varied or revoked, or be subject to any condition subsequent, under the terms of the trust.
The refund amount will be based on the difference between the ABSD (Trust) rate of 35% and the ABSD rate corresponding to the profile of the beneficial owner with the highest applicable ABSD rate.
Disclaimer: Whilst reasonable care has been taken in provision of information above, it does not constitute legal or other professional advice. INTERSHORES does not accept any responsibility, legal or otherwise, for any error omission and accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, readers are advised to take appropriate professional advice before committing themselves to any involvement in jurisdictions, vehicles or practice.
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