RES exam question on Taxes & Duties: Seller's Stamp Duty in Singapore
Consider the following statements about Seller's Stamp Duty (SSD) in Singapore: (i) For residential properties, SSD (effective 4 July 2025) applies for 4 years: 16% in year 1, 12% in year 2, 8% in year 3, and 4% in year 4. (ii) SSD is a liability of the buyer, collected by the buyer's solicitor at completion. (iii) For industrial properties, SSD applies for 3 years: 15% in year 1, 10% in year 2, and 5% in year 3 (effective 12 January 2013). (iv) Compulsory acquisition of land by the Singapore government is exempt from SSD. Which statements are CORRECT?
- A(ii), (iii) and (iv) only
- B(i), (iii) and (iv) only
- C(i), (ii) and (iv) only
- D(i) and (iii) only
Show answer & explanation
Answer
B. (i), (iii) and (iv) only
Explanation
(i) Correct — residential SSD was revised effective 4 July 2025 to apply over 4 years at 16%/12%/8%/4% for the first through fourth year respectively. (iii) Correct — industrial SSD has applied since 12 January 2013 at 15%/10%/5% for sales in the first, second, and third year of ownership. (iv) Correct — government compulsory acquisitions under the Land Acquisition Act are exempt from SSD, as SSD targets voluntary market disposals. It is payable by the vendor upon disposal of the property within the applicable holding period. The buyer pays BSD (and ABSD if applicable); the seller pays SSD.
Why the other options are wrong
- (ii) Incorrect — SSD is a liability of the SELLER, not the buyer.
Study the concept behind this question: Stamp Duties Explained: BSD, ABSD & SSD (Singapore, 2026)
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