Taxation

ABSD is an additional tax on property purchases beyond the standard Buyer's Stamp Duty. As of 2024, rates are: Singapore Citizens — 20% for 2nd property, 30% for 3rd+; Permanent Residents — 30% for 2nd+; Foreigners — 60% for any property. ABSD is calculated on the purchase price or market value, whichever is higher.

SSD applies when a property is sold within 3 years of acquisition. The rates are: 12% if sold within 1 year, 8% within 2 years, and 4% within 3 years. SSD was introduced to discourage short-term speculative buying and is calculated on the sale price or market value, whichever is higher.

Property tax is based on the Annual Value (AV) — the estimated annual rental income. Owner-occupied residential properties enjoy progressive rates from 0% (first $8,000 AV) to 32% (above $130,000 AV). Non-owner-occupied properties are taxed at 12% to 36%. IRAS reviews AVs annually.

There are approximately 116 practice questions on Taxation. This topic requires memorising specific rates and thresholds for BSD, ABSD, SSD, property tax, and GST on commercial properties. Calculation-based questions are common.