Taxation Cheat Sheet for RES Exam Revision

BSD applies to all property purchases in Singapore. The rates follow a progressive tiered structure:

• First S$180,000: 1%
• Next S$180,000 (S$180,001 to S$360,000): 2%
• Next S$640,000 (S$360,001 to S$1,000,000): 3%
• Remaining amount above S$1,000,000: 4% (capped at 4% for residential, but 5% for amounts above S$1,500,000 for non-residential)

Key exam fact: BSD is calculated on the higher of purchase price or market value. Payment deadline is 14 days from date of contract/agreement, or date of transfer/conveyance if no contract exists. For Option to Purchase (OTP), stamp duty is due within 14 days after exercising the option. Remember: Industrial and commercial properties above S$1,000,000 follow different rates (4% for next S$500,000, then 5% above S$1,500,000).

ABSD applies on top of BSD for specific buyer profiles. Current rates (as of 27 April 2023):

Singapore Citizens:

• First property: 0%
• Second property: 20%
• Third and subsequent: 30%

Singapore Permanent Residents:

• First property: 5%
• Second property: 30%
• Third and subsequent: 35%

Foreigners: 60% on any residential property

Entities (companies, associations): 65% for any residential property purchased on or after 27 April 2023 (previously 35% for first property)

Critical exam point: ABSD is calculated on purchase price or market value (whichever is higher). Housing developers approved by the Controller may qualify for remission. ABSD applies to residential properties only, not commercial or industrial.

SSD is an anti-speculation measure on residential properties. It applies based on holding period from date of acquisition:

• Sold within 1st year: 12% of selling price or market value (whichever is higher)
• Sold within 2nd year: 8%
• Sold within 3rd year: 4%
• Held more than 3 years: 0% (no SSD)

What triggers SSD: Sale or disposal of residential property acquired on or after 20 February 2010 (for properties acquired 14 January 2011 onwards, current rates apply). Exemptions include: Transfers due to divorce, death of owner, or gifts between immediate family members (subject to conditions). Industrial and commercial properties are not subject to SSD. Exam tip: SSD is payable by the seller, unlike BSD/ABSD which buyers pay.

Property tax is calculated on Annual Value (AV) × Tax Rate. AV is the estimated gross annual rent the property could fetch if rented out, determined by IRAS.

Owner-Occupied Residential (Progressive rates on AV):

• First S$8,000: 0%
• Next S$47,000 (S$8,001-S$55,000): 4%
• Next S$15,000 (S$55,001-S$70,000): 6%
• Next S$15,000 (S$70,001-S$85,000): 8%
• Above S$85,000: increases progressively up to 32% for amounts above S$130,000

Non-owner-occupied residential: 12% for first S$30,000 of AV, then progressive rates up to 36% above S$90,000

Non-residential (commercial/industrial): 10% flat rate

Payment: Property tax is payable annually by 31 January. IRAS sends tax bills in December/January.

Current GST rate: 9% (effective 1 January 2024, increased from 8%).

GST applies to:

• Sale of commercial and industrial properties (when sold by GST-registered persons)
• Agent commission fees
• Legal fees
• Valuation fees

GST does NOT apply to:

• Sale and lease of residential properties (exempt supply)
• Sale of vacant land zoned for residential use

Key exam distinction: Residential property sales are exempt from GST, meaning no GST is charged, but input tax cannot be claimed. Commercial property sales by GST-registered businesses are standard-rated at 9%. Agent commissions are always subject to GST when the agent is GST-registered, regardless of property type. Rental of residential property is also GST-exempt, while commercial rentals are subject to GST.

Critical deadlines for RES exam:

For Sale & Purchase Agreements:

• Stamp duty must be paid within 14 days from date of document execution
• If OTP is involved: within 14 days after exercising the option

For Tenancy Agreements:

• Within 14 days from date of execution or commencement of lease (whichever is earlier)

Penalties for late payment:

• Up to 1 month late: 4 times the stamp duty amount
• More than 1 month late: 4 times the stamp duty amount plus an additional 4% per annum on the duty payable

Exam reminder: Stamp duty is paid to IRAS (Inland Revenue Authority of Singapore). Use e-Stamping for electronic payment. The person liable to pay stamp duty is typically the purchaser for BSD/ABSD and the seller for SSD. Both parties to a tenancy agreement are jointly liable for stamp duty.

Remission allows recovery of ABSD paid under specific conditions:

Singapore Citizens buying 2nd property:

• Can claim full ABSD remission if they sell their first property within 6 months of purchasing the second
• The 6-month period starts from the date of purchase (completion date) of the new property
• Must apply to IRAS within the timeframe

Married couples:

• If spouse already owns property, buyer pays ABSD as applicable
• Remission available if existing property is sold within 6 months

Decoupling: When co-owners transfer shares, ABSD applies on the transfer based on transferee's profile. Housing developers may get ABSD remission if they sell all units within 5 years (previously 2 years, extended). Exam note: Remission is not automatic—must apply to IRAS. Time limits are strictly enforced. No remission for PRs buying 2nd property or foreigners.

Must-memorize numbers for exam day:

• BSD payment deadline: 14 days
• SSD threshold: 3 years holding period
• ABSD remission window: 6 months
• Property tax payment: by 31 January annually
• Current GST rate: 9%
• SC 2nd property ABSD: 20%
• SC 3rd property ABSD: 30%
• PR 1st property ABSD: 5%
• Foreigner ABSD: 60%
• Entity ABSD: 65%
• BSD first tier rate: 1% (up to S$180,000)
• Owner-occupied property tax: starts at 0% (progressive)
• Non-residential property tax: 10% flat

Exam strategy: These figures appear frequently in calculation questions across Paper 2. The Prepare app offers 116 taxation practice questions to help you master these calculations and apply these rules in realistic exam scenarios covering stamp duty, property tax, GST, ABSD, and SSD across all 13 RES exam topics.