Chapter 4.8.
Taxes on property

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Learning outcomes of this chapter:

  • Understand key features of Stamp Duties Act in relation to properties.
  • Determine whether stamp duty, property tax, income tax and GST are payable in terms of
    • Incidence (i.e. on what; e.g. are rents and profits in relation to property transactions taxable)
    • When to pay
    • By whom
    • How much (i.e. tax rate)
    • Types of properties exempted from GST and stamp duty
  • Determine whether a sale and purchase (including subsale) is subject to BSD, ABSD and/or SSD prevailing at the time, and compute the quantum thereof.
  • Recognise the types of property and circumstances where ABSD and/or SSD are exempted or remitted on application.
  • Compute stamp duty on mortgage.
  • Compute stamp duty on lease or tenancy.
  • Understand the considerations for granting owneroccupier’s concession and compute property tax for owner-occupied dwelling house and other properties.
  • Understand two types of property tax remission, viz. residential property undergoing
    • Addition & alteration work
    • Construction
  • Understand the factors that determine whether a person is deemed to be trading in properties and hence subject to income tax.
  • Interpret what expenses are or are not deductible from rental income.
  • Apply the terms “taxable person”, “taxable supply”, “exempt supply”.
  • Compute GST on property sale, lease and agency services.

Related Multiple Choice Questions

What incurs stamp duties during property transfers in Singapore?

Upon purchasing a second home in Singapore, the buyer is subject to pay an additional tax known as:

What must be done for leases exceeding seven years?

Noah is planning to invest in Singapore's real estate market. Which government policy is aimed at curbing speculation and ensuring market stability?

Which of the following is NOT a cooling measure in Singapore's real estate market?

Marcus is an investor looking to convert his semi-detached house into a bungalow in Singapore. What is a critical factor he must consider before proceeding with the conversion?

Which type of property in Singapore requires foreign investors to understand and comply with specific rules?

Which Act allows the Singapore government to acquire land for public use, ensuring fair compensation for the landowners?

What type of properties does the Residential Property Act (RPA) classify as 'restricted'?

What triggers the Land Betterment Charge (LBC) in Singapore?

Charles is selling his house to Diana. After Diana exercises the OTP by paying the remaining down payment, what document becomes binding between Charles and Diana?

What system is used in Singapore for the transfer of property titles?

Bob is completing the purchase of a new home. At what point in the process is the legal title of the property officially transferred to him under Singapore's Land Titles System?

Sophia is a foreign investor looking to purchase a landed home in Singapore. What must she ensure to comply with?

Which unit oversees the approval process for foreign ownership of restricted properties in Singapore?