RES exam question on Taxes & Duties: total BSD payable
A buyer purchases a commercial office unit in Singapore for $1,800,000. 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. What is the total BSD payable?
- A$59,600
- B$56,600
- C$48,600
- D$64,600
Show answer & explanation
Answer
A. $59,600
Explanation
Issue: applying the full non-residential BSD scale. Rule: for property acquired on or after 15 February 2023 (Budget 2023, iras.gov.sg), non-residential BSD 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% above $1,500,000. Application: $1,800 + $3,600 + $19,200 = $24,600 on the first $1,000,000. The next $500,000 at 4% is $20,000 and the last $300,000 at 5% is $15,000. Total $59,600. $56,600 stops at 4% and misses the 5% tier. $48,600 is the pre-15 February 2023 scale, which charged 3% on everything above $360,000. $64,600 charges everything above $1,000,000 at 5%. Conclusion: $59,600.
Study the concept behind this question: Stamp Duties Explained: BSD, ABSD & SSD (Singapore, 2026)
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