RES exam question on Taxes & Duties: Five buyers, none of them a Singapore Citizen, each buy their first residential property…
Five buyers, none of them a Singapore Citizen, each buy their first residential property in Singapore alone in October 2026. Their salesperson, Mr Kok, explains the Additional Buyer's Stamp Duty each will pay under the current rates and the free trade agreement rules. (i) Jake, a United States national working here on an employment pass, pays ABSD at 0%, the citizen rate. (ii) Tom, a United Kingdom national, pays ABSD at 0%, since Singapore has a free trade agreement with the UK. (iii) Lukas, a Swiss national, pays ABSD at 0% on this first purchase under the free trade agreement rules. (iv) Mei, a national of China who is not a permanent resident here, pays ABSD at 60%. (v) Priya, an Indian national who is a Singapore Permanent Resident, pays ABSD at 5%. Which is/are correct?
- A(i), (iii), (iv) and (v) only
- B(i), (ii), (iii) and (iv) only
- C(i), (iii) and (iv) only
- D(iii), (iv) and (v) only
Show answer & explanation
Answer
A. (i), (iii), (iv) and (v) only
Explanation
Answer: (i), (iii), (iv) and (v) only. The remission covers only listed nationalities, and the UK is not among them; a free trade agreement alone is not enough.(i) True. A US national takes the citizen rate, 0% on a first property.(iii) True. Swiss nationals are among those given citizen treatment, so 0% applies.(iv) True. A foreigner without the remission pays ABSD at 60%.(v) True. She is taxed as a PR, at 5% on a first property.Rule: A foreigner pays ABSD at 60% and a Singapore Permanent Resident 5% on a first residential property. Nationals of the United States, and nationals and permanent residents of Iceland, Liechtenstein, Norway and Switzerland, get the same ABSD treatment as Singapore Citizens.Source: IRAS, rates from 27 Apr 2023; Stamp Duties (Free Trade Agreements) (Remission of ABSD) Rules; RESPrep /learn/stamp-duties-bsd-absd-ssd; current at 1 Oct 2026
Why the other options are wrong
- (ii) False. Having a free trade agreement with Singapore is not enough; the remission covers only the listed nationalities, and the UK is not among them.
Study the concept behind this question: Stamp Duties Explained: BSD, ABSD & SSD (Singapore, 2026)
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