RES exam question on Taxes & Duties: Lisa, a Singapore Citizen (SC), purchases her first residential property
Lisa, a Singapore Citizen (SC), purchases her first residential property — a private condominium unit at $1,500,000 — as the sole buyer. Consider the following statements: (i) Lisa pays 0% Additional Buyer's Stamp Duty (ABSD) as a SC buying her first residential property. (ii) Lisa's Buyer's Stamp Duty (BSD) on a $1,500,000 purchase is $44,600. (iii) Lisa may use her CPF Ordinary Account savings to pay the BSD and legal fees. (iv) If Lisa later purchases a second residential property, she will be liable for 20% ABSD on that purchase. Which statements are correct?
- A(i), (ii), (iii) and (iv)
- B(i), (iii) and (iv) only
- C(i), (ii) and (iv) only
- D(ii), (iii) and (iv) only
Show answer & explanation
Answer
A. (i), (ii), (iii) and (iv)
Explanation
All four are correct. (i) SC first residential property = 0% ABSD. (ii) BSD: 1%×$180k=$1,800 + 2%×$180k=$3,600 + 3%×$640k=$19,200 + 4%×$500k=$20,000 = $44,600. (iii) CPF OA can pay BSD and legal fees for eligible residential properties. (iv) SC second residential property = 20% ABSD (rates effective 27 April 2023).
Study the concept behind this question: Decoupling & ABSD in Singapore: How It Works (and the Traps)
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