RES exam question on Taxes & Duties: their stamp duty position on the condominium purchase
A Singapore Citizen couple plan to upgrade from their matrimonial HDB flat to a private condominium, which will be purchased solely in the wife's name. They have no other property. The HDB flat is sold and legally completed one week before the private condominium OTP is exercised. Which of the following correctly describes their stamp duty position on the condominium purchase?
- AThe wife pays BSD only; the HDB flat was sold before purchase, so this is her first property and no ABSD applies
- BThe wife pays BSD and ABSD at 20% because she co-owned the HDB flat which was sold only one week prior
- CThe wife pays BSD and ABSD at 5% as this is treated as a second property under the ABSD rules for Singapore Citizens
- DThe wife pays BSD only if she obtains an ABSD remission certificate from IRAS within 6 months of the condominium purchase
Show answer & explanation
Answer
A. The wife pays BSD only; the HDB flat was sold before purchase, so this is her first property and no ABSD applies
Explanation
For ABSD purposes, a Singapore Citizen's first residential property acquisition (counting properties owned at the time of purchase) attracts 0% ABSD. Since the HDB flat was legally completed (transferred) before the private condominium OTP was exercised, the wife has no residential property at the point of purchase — it is her first acquisition. She pays BSD only. Timing of legal completion (not just the OTP or agreement) determines the property count.
Study the concept behind this question: Decoupling & ABSD in Singapore: How It Works (and the Traps)
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