Singapore Closes Tax Loophole on Property-Trust Transfer
An Additional Buyers' Stamp Duty (ABSD) of 35% will now apply to any transfer of residential property into a living trust, according to a statement posted on the Ministry of Finance's website.
The new rule ("ABSD (Trust)"), will apply to transfers that occur on or after May 9, 2022
A living trust is a trust that is created by a person when he/she is alive
Previously, when a residential property is transferred into a living trust, Buyer's Stamp Duty is payable but whether there will be ABSD depends on who is benefiting from the residential property that is transferred into the living trust. When a living trust is structured such that there is no identifiable beneficial owner(s) at the time when the residential property is transferred, ABSD does not apply
Now, the ABSD (Trust) is payable upfront regardless of whether there's identifiable beneficial owner(s)
A trustee may apply for a refund of ABSD (Trust) if certain conditions are met
For more information, please refer to MOF's statement here
Immortalize is a Last Mile of Life marketplace and information provider, helping people find the right providers to do their life, death, estate and legacy planning and execution all on one platform.
Subscribe to our mailing list to get the articles delivered straight to your inbox.
Need someone to help with your will, lasting power of attorney and other last mile of life affairs? Outsource the work to Immortalize Prime, your personal last mile of life assistant!
Disclaimer: Nothing in this article or site should be construed as providing legal advice or advice of any sort. The information provided are general in nature and may become inaccurate over time. Please consult a professional for advice.
For any issues or queries, please contact firstname.lastname@example.org