{"id":51148,"date":"2022-05-09T12:58:14","date_gmt":"2022-05-09T04:58:14","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=51148"},"modified":"2022-06-13T18:11:59","modified_gmt":"2022-06-13T10:11:59","slug":"35-absd-trust-remission","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/35-absd-trust-remission\/","title":{"rendered":"What you need to know about the new ABSD (Trust): 35% rate + conditions for remission"},"content":{"rendered":"
<\/div>

35% Additional Buyer\u2019s Stamp Duty (ABSD)<\/a> will now apply for any transfer of residential property into a living trust from 9 May onwards, as announced<\/a> by the Ministry of Finance late on 8 May.<\/p>\n

Previously, the Buyer\u2019s Stamp Duty (BSD)<\/a> was payable for the transfer. Depending on the profile of the beneficiary, ABSD might also be payable. On the other hand, if there was no identifiable beneficial owner at the time of transfer into a trust, payment of the ABSD was not required.<\/p>\n

With this change, under ABSD (Trust), a trustee will have to pay the ABSD even when there is no identifiable beneficial owner at the time of the transfer of the residential property.<\/p>\n

According to the press release, \u201cABSD aims to promote a stable and sustainable residential property market, and as such, it should apply to transfers of residential properties into all living trusts, irrespective of whether there are identifiable beneficial owners of the residential properties transferred into such trusts.\u201d<\/p>\n

Lam Chern Woon, Head of Research and Consulting at Edmund Tie, remarked that this change serves to level the playing field among market players.<\/p>\n

\u201cWhile it is the intention of parents to leave an advance legacy for their children, some have bemoaned that this runs the risk of exacerbating the state of inequality. There is no policy that can please all stakeholders, but going by how the government has been tweaking the rules to create a more inclusive and fair society, including the latest Budget 2022 revisions<\/a> to property tax<\/a> and vehicle tax, the writing was on the wall on the creation of such trusts.\u201d<\/p>\n

At the same time, Lam believed its impact on the market is not likely to be significant, given that the majority of property purchases are not made through trusts.<\/p>\n

Remission of ABSD (Trust)<\/h2>\n

The trustee may also apply to IRAS for a refund of the ABSD (Trust)<\/a> if all of the following conditions are met:<\/p>\n