Seller Stamp Duty – 6 Absolute Facts Every Home Seller Must Know

One of the many additional costs associated with buying property is stamp duty. Seller stamp duty, what exactly is it?

Thinking of selling your property within three years of owning it?

You may want to reconsider as doing so will incur the seller’s stamp duty and make a dent in your sale proceeds. Read our guide to find out more.

Seller Stamp Duty Singapore is the tax payable on residential properties sold within the holding period of 3 years.

The holding period for SSSD begins on the date of purchase of property and acquisition and ends on the date of sale.

Seller Stamp Duty (SSD) was introduced in 2010 as a property cooling measure that is payable to the Inland Revenue Authority of Singapore (IRAS).

It is to curb the act of filling a property for profit.

IRAS thinks that if it is left uncontrolled, widespread property flipping could drive property demand and prices up. This could potentially contribute to a bubble.

Additionally, seller stamp duty (SSD) will need to be paid if you acquired the property through a property transfer in case of a divorce. 

These are Stamp Duties (Matrimonial Proceedings, Remission Rule), inheritance, or a transfer of an HDB flat within the family Stamp Duties (Transfer of HDB Flat Within Family) Remission Rule.

However, if you’re an HDB flat owner who wants to sell your flat after fulfilling the Minimum Occupation Period (MOP) of 5 years, you are not required to pay Seller stamp duty (SSD). 

As mentioned, SSD applies to residential properties, industrial properties, and land.

Residential properties include HDB flats, Private properties as well as Building Under Construction (BUC).

However, most HDB flat owners would not need to pay SSD since they typically sell their properties after the Minimum Occupation Period (MOP) of 5 years, and there is generally no Seller Stamp Duty (SSD) due for properties sold after a holding period of 3 years. 

A seller has to pay seller stamp duty if he/she sells the property within the 3-year holding period which is the number of years that you own the property. 

As mentioned, this tax will only be applicable if you bought a residential property or land on, or after 20 February 2010.

You are required to stamp a document for example; a Purchase Agreement, or Tenancy Agreement before you sign it.

The common practice is however to sign the document first, followed by getting the document stamped within the time frame.

Let’s take a look at the table below to understand better.

Date of Purchase	Holding Period	Stamp duty Rates Payable
Between 20 Feb 2010 and 29 Aug 2010 (all-inclusive)	Up to 1 year	No Seller Stamp duty rates are payable
	More than 1 year	0.33% on the first $180,000 0.67% on next $180,000 1% on the remainder
Between 30 Aug 2010 and 13 Jan 2011 (all-inclusive)	Up to 1 year	1% on the first $180,000 2% on the next $180,000 3% on the remainder
	More than 1 year and up to 2 years	0.67% on the first $180,000 1.33% on the next $180,000 2% on the remainder
	More than 2 years and up to 3 years	0.33% on the first $180,000 0.67% on the next $180,000 1% on the remainder
Between 14 Jan 2011 and 10 Mar 2017 (all-inclusive)	More than 3 years	0.33% on the first $180,000 0.67% on the next $180,000 1% on the remainder
	Up to 1 year	16%
	More than 1 year and up to 2 years	12%
	More than 2 years and up to 3 years	8%
	More than 3 years and up to 4 years	4%
	More than 4 years	No Sellers Stamp duty rates payable
On and after 11 Mar 2017 (Latest Seller Stamp Duty rates)	Up to 1 year	12%
	More than 1 year and up to 2 years	8%
	More than 2 years and up to 3 years	4%
	More than 3 years	No Sellers Stamp duty rates payable

The total SSD that you are required to pay is calculated by applying the applicable stamp duty rates on whichever is higher for the residential property in question:

They are either:

1. Selling Price, or
2. Current Market Value

As evident from the table above, these 3 factors also play a part in determining the total Seller stamp duty you’ll need to pay:

• When the transaction takes place 
• The SSD percentage rate 
• The holding period

Additionally,  the earlier you sell your property, the higher the Seller stamp duty you’ll need to pay.

Commercial seller Stamp duty rates can go as high as 15% if a property owner is looking to sell the property within one year of buying it. 

This however does not apply to commercial properties except for some industrial properties such as the B1/B2 industrial factories which are based on the holding period.

Below are the rates:

Date of Purchase/ Acquisition or Date of Change of Zoning/ Use	Holding Period	Commercial Seller Stamp Duty rates
On or after 12 January 2013	Up to 1 year	15%
	More than 1 year and up to 2 years	10%
	More than 2 years and up to 3 years	5%
	More than 3 years	No commercial seller stamp duty payable

According to IRAS, here are a few situations where the Seller Stamp Duty (SSD) for residential properties is exempted.

• Licensed housing developers governed under the Housing Developers (Control and Licensing) Act need not pay SSD when selling residential properties developed by them. 
• Public authorities (e.g. HDB and JTC) in practicing their functions and duties need not pay SSD when selling residential properties. 
• Residential property owners need not pay SSD when their properties are acquired by the Government under the Land Acquisitions Act. 
• Individuals who own residential properties need not pay SSD if they have been adjudged bankrupt and are required to dispose of their residential properties as a result of bankruptcy. 
• Companies that own residential properties need not pay SSD when disposing of their residential properties upon involuntary winding up. 
• Foreigners need not pay SSD when they have to sell their residential properties as required under the Residential Properties Act.
• For HDB flat sellers or transferors who bought or acquired their flats on or after 30 Aug 2010 and their flats have been identified for Selective Enbloc Redevelopment Scheme (SERS), but sell their flats in the open market before HDB claims them.
• HDB flat sellers or transferors who return their flats to HDB as a result of repossession by HDB or under the SERS.
• A person who owns an HDB flat inherits an HDB flat and is required under the HDB’s regulations to dispose of either the inherited HDB flat or the existing HDB flat. This exemption applies to the disposal of flats on or after 18 Dec 2015. 
• A person who owns a non-HDB flat inherits an HDB flat and is required under the HDB’s regulations to dispose of the inherited HDB flat. This exemption applies to the disposal of flats on or after 18 Dec 2015. 
• A person who owns an HDB flat marries a person who owns another HDB flat and the couple is required under HDB’s regulations to dispose of either one of the HDB flats. This exemption applies to the disposal of flats on or after 18 Dec 2015.

Owners of commercial properties such as offices or malls are not subject to this and can choose to sell off their properties and exit the market at any time.  

This option is however not risk-free as the property market is dynamic and is affected by multiple points that have an impact on supply, demand, and therefore price. 

Investors are to balance their risk with investment objectives when selecting the appropriate property.

It’s not just property sellers that are subjected to tax, some buyers will also need to pay tax when they buy properties in Singapore. They are known to be:

1. Buyer’s Stamp Duty (BSD) and 
2. Additional Buyer’s Stamp Duty (ABSD)

Similar to SSD, both were established by the government as cooling measures to ensure that housing remains at the most reasonable and affordable price for all Singaporeans.

BSD is payable when you buy or acquire a property, The applicable rate will apply to whichever is higher. In this case, they’ll look at either:

• The purchase price of the residential property, or
• The market value of the residential property

The ABSD is levied on top of the BSD and applies to individuals buying additional residential property/houses:

• For Singaporean Citizens, ABSD will apply for the second property purchased, and all subsequent property purchases. 
• For Permanent Residents, ABSD will apply to all purchases, with the first purchase at a lower rate. 
• For foreigners and corporate entities, ABSD will apply to all purchases at a similar rate, including the first one.

We hope this guide has helped you gain some knowledge of what Seller’s Stamp Duty in Singapore is all about.

While selling your home can bring in tidy returns, do remember to factor in possible expenses such as Seller’s Stamp Duty, and also fees for your property agent if you’re looking to hire one.

All of these will add up to high costs so do think about it!