RES exam question on Taxes & Duties: Buyer's Stamp Duty does she pay on the office
Ms Lau, a Singapore Citizen who owns one home, buys a completed office unit in the CBD for $1,800,000 in October 2026, which matches its market value. She will lease it to a law firm at $6,000 a month. What Buyer's Stamp Duty does she pay on the office?
- A$56,600
- B$59,600
- C$48,600
- D$64,600
Show answer & explanation
Answer
B. $59,600
Explanation
Answer: $59,600, on the non-residential Buyer's Stamp Duty ladder in force since 15 Feb 2023, which charges 5% on the amount above $1,500,000.Working:1. $1,800 + $3,600 + $19,200 = $24,600 on the first $1,000,000.2. The next $500,000 at 4% is $20,000.3. The last $300,000 at 5% is $15,000.4. $24,600 + $20,000 + $15,000 = $59,600.Watch out: Her home and the rent do not affect the figure, and Additional Buyer's Stamp Duty does not apply to non-residential property.Rule: Non-residential Buyer's Stamp Duty is 1% on the first $180,000, 2% on the next $180,000, 3% on the next $640,000, 4% on the next $500,000 and 5% on the remainder.Source: IRAS, Buyer's Stamp Duty, rates from 15 Feb 2023 (read 1 Oct 2026)
Why the other options are wrong
- Stopping the ladder at 4%: $56,600 charges the last $300,000 at 4% instead of 5%.
- The pre-February 2023 scale: $48,600 uses the scale before 15 Feb 2023, which charged 3% on everything above $360,000.
- Charging 5% above $1,000,000: $64,600 charges everything above $1,000,000 at 5%.
Study the concept behind this question: Stamp Duties Explained: BSD, ABSD & SSD (Singapore, 2026)
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