ABSD Revisions to Support Seniors and the Built Environment Sector
The concession may facilitate right-sizing among single seniors, potentially increasing movement from higher-value homes into less expensive private properties.
From 16 February 2024, eligible single Singaporeans aged 55 or above can obtain an ABSD refund when replacing their home with a lower-value private property.
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1. The Government announced today the following changes to the Additional Buyer’s Stamp Duty (ABSD) regime:
a. a new ABSD concession for single Singapore Citizen (SC) seniors purchasing a replacement private residential property; and
b. revised ABSD remission clawback rates for housing developers (HDs).
New ABSD Concession for Single SC Seniors
2. Today, buyers of HDB flats and new Executive Condominium units are not required to pay ABSD, if any of the joint acquirers or purchasers is an SC, as current regulations require them to dispose of their first property within 6 months of legal possession of their new flat.
3. An ABSD concession is accorded to married couples with at least one SC spouse, who jointly purchase a replacement private residential property. Under the concession, the couple can apply for a refund of ABSD, subject to conditions which include selling their first residential property within 6 months after (a) the date of purchase of the replacement unit if it is a completed residential property, or (b) the issue date of the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) of the replacement property, whichever is earlier, if the replacement residential unit is not completed at the time of purchase.
4. To better support single seniors who wish to right-size their residential property, the Government will extend the ABSD concession to single SCs aged 55 and above, for purchases on or after 16 Feb 2024. They will be able to claim a refund of ABSD paid on their lower-value replacement private residential property, if they sell their first residential property within 6 months after the:
(a) Date of purchase of a replacement residential property, if it is a completed unit; or
(b) Issue date of the TOP or CSC of the replacement residential property, whichever is earlier, if the replacement unit is not completed at the time of purchase.
ABSD Remission Clawback Rates Revisions for HDs
5. Currently, licensed HDs purchasing residential land on or after 16 Dec 2021 are subject to 40% ABSD, comprising a (i) 5% non-remittable component; and (ii) 35% upfront remittable component. Licensed HDs who purchased residential land between 6 Jul 2018 and 15 Dec 2021 are subject to 30% ABSD, comprising a (i) 5% non-remittable component; and (ii) 25% upfront remittable component.
6. The 35% or 25% remitted upfront are currently clawed back fully with interest, if the following timelines are not met:
a. Commence housing development within 2 years from the date of acquisition of the site; and
b. Complete the housing development, and sell all housing units within 5 years from the site acquisition date.
7. To provide some flexibility for HDs to address the difficulties they may face in selling all units within the prescribed timelines, the Government will lower the ABSD remission clawback rate should HDs sell at least 90% of housing units in the development within 5 years from the land acquisition date, if the commencement and completion of housing development timelines are also satisfied. The reduction in the ABSD remission clawback rate will depend on the proportion of units sold by the HDs within the remission sale timeline. This will apply to projects on residential land acquired on or after 6 Jul 2018. The revised ABSD remission clawback rates are appended at Table 1. As HDs need to sell at least 90% of housing units to qualify for the lower ABSD remission clawback rate, this will continue to ensure housing supply is made available for sale promptly by HDs.
Table 1: Revised ABSD remission clawback rates for projects depending on date of acquisition of residential site and proportion of units sold at the prescribed sale timeline (assuming commencement and completion of housing development timelines are met)
Proportion of Units Sold
(%)
(Rounded down to nearest whole %)
Proportion of Units Sold
(%)
(Rounded down to nearest whole %)
Projects with residential land acquired between 6 Jul 2018 and 15 Dec 2021, subject to 30% ABSD with upfront 25% remission
Projects with residential land acquired between 6 Jul 2018 and 15 Dec 2021, subject to 30% ABSD with upfront 25% remission
Projects with residential land acquired on or after 16 Dec 2021, subject to 40% ABSD with upfront 35% remission
Projects with residential land acquired on or after 16 Dec 2021, subject to 40% ABSD with upfront 35% remission
ABSD Remission Clawback Applicable before 16 Feb 2024
(%)
ABSD Remission Clawback Applicable before 16 Feb 2024
(%)
ABSD Remission Clawback Applicable on or after 16 Feb 2024
(%)
ABSD Remission Clawback Applicable on or after 16 Feb 2024
(%)
ABSD Remission Clawback Applicable before 16 Feb 2024
(%)
ABSD Remission Clawback Applicable before 16 Feb 2024
(%)
ABSD Remission Clawback Applicable on or after 16 Feb 2024
(%)
ABSD Remission Clawback Applicable on or after 16 Feb 2024
(%)
100
100
0
0
0
0
0
0
0
0
99
99
25
25
15
15
35
35
25
25
98
98
16
16
26
26
97
97
17
17
27
27
96
96
18
18
28
28
95
95
19
19
29
29
94
94
20
20
30
30
93
93
21
21
31
31
92
92
22
22
32
32
91
91
23
23
33
33
90
90
24
24
34
34
<90
<90
25
25
35
35
Note: ABSD remission clawback will continue to be subject to 5% interest per annum.
More Information
8. For more details, please refer to www.iras.gov.sg. The Government will continue to adjust our policies as necessary to ensure that they remain relevant, and promote a sustainable property market.
Issued by: Ministry of Finance and Ministry of National Development