RES exam question on Taxes & Duties: Buyer's Stamp Duty payable
A buyer purchases a commercial shophouse for $1,600,000. What is the Buyer's Stamp Duty (BSD) payable, applying the progressive non-residential BSD rates in effect as of June 2026?
- A$44,600 — only the first four progressive tiers apply, so nothing above $1,500,000 is taxed
- B$49,600 — using the progressive non-residential tiers, with the top $100,000 taxed at 5%
- C$32,000 — commercial property attracts a flat BSD rate of 2% on the full purchase price
- D$80,000 — a flat 5% rate on the whole price for non-residential property above $1,500,000
Show answer & explanation
Answer
B. $49,600 — using the progressive non-residential tiers, with the top $100,000 taxed at 5%
Explanation
Non-residential BSD (from 15 Feb 2023) uses progressive tiers: first $180,000 at 1% = $1,800; next $180,000 at 2% = $3,600; next $640,000 (from $360k to $1m) at 3% = $19,200; next $500,000 (from $1m to $1.5m) at 4% = $20,000; remaining $100,000 (from $1.5m to $1.6m) at 5% = $5,000. Total BSD = $1,800 + $3,600 + $19,200 + $20,000 + $5,000 = $49,600. The non-residential tiers differ from residential BSD tiers and there is no ABSD applicable to non-residential property purchases. BSD is the buyer's primary obligation.
Study the concept behind this question: Stamp Duties Explained: BSD, ABSD & SSD (Singapore, 2026)
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