25/05/2025
In Singapore, purchasing residential property through a trust structure is subject to Additional Buyerโs Stamp Duty (ABSD). As of the latest guidelines, an ABSD rate of 65% applies to such transactions. However, under certain conditions, a remission (refund) of this ABSD may be granted. ๏ฟผ ๏ฟผ
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๐ ABSD (Trust) Overview
โข Upfront Payment: When a residential property is purchased on trust, an upfront payment of 65% ABSD is required. ๏ฟผ
โข Eligibility for Remission: A full or partial refund of the ABSD may be granted if specific conditions are met.
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Conditions for ABSD (Trust) Remission
To qualify for a remission of the ABSD paid under a trust, the following criteria must be satisfied:
1. Identifiable Individual Beneficiaries: The trust must clearly identify individual beneficiaries who are entitled to the property. ๏ฟผ
2. Vested Beneficial Ownership: The beneficiariesโ ownership in the property must be immediate and not contingent upon future events or conditions.
3. No Revocation or Amendment Clauses: The trust should not contain provisions that allow for the revocation or amendment of the beneficiariesโ interests.
4. Application Timeline: An application for remission must be submitted within 6 months from the date of ex*****on of the trust instrument. ๏ฟผ
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๐ก Examples
โข Full Remission Scenario: If a property is purchased on trust for a minor child who does not own any other residential property, and the trust meets all the above conditions, the full 65% ABSD paid may be refunded. ๏ฟผ
โข Partial Remission Scenario: If a property is purchased on trust for a spouse who already owns one residential property, and the trust meets all the above conditions, a partial refund may be granted. For instance, if the ABSD applicable to the spouseโs profile is 20%, then 45% (65% paid minus 20% applicable) may be refunded.
โข No Remission Scenario: If the trust specifies that a beneficiaryโs interest in the property is contingent upon future events (e.g., graduating from university), the trust does not meet the criteria for remission, and no refund will be granted. ๏ฟผ
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๐ Application Process
To apply for ABSD (Trust) remission:
1. Stamp the Trust Instrument: Ensure the trust deed is duly stamped within the stipulated timeframe.
2. Submit Application: Apply for remission through the IRAS e-Stamping Portal. ๏ฟผ
3. Provide Supporting Documents: Include all necessary documentation to support the application. ๏ฟผ
4. Processing Time: Most applications are processed within 2 months from the date of complete submission. If approved, the refund is typically issued within 1 month after approval. ๏ฟผ
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๐ Important Notes
โข Strict Compliance: All conditions must be strictly met to qualify for remission. ๏ฟผ
โข Professional Advice: Given the complexity of trust arrangements and stamp duty regulations, it is advisable to consult legal or tax professionals when considering property purchases through trusts.
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For more detailed information and the latest updates, please refer to the IRAS website on ABSD (Trust) Remission.
