Log out

You’re logging out from your Ohmyhome account. Continue?

Log out Cancel
Chat With Us
Ohmyhome agents are able to help sell your condo in Singapore

Everything You Need to Know About Seller’s Stamp Duty (SSD)

Maelyn Lagman

Maelyn Lagman

Planning on selling your condo? Before you do so, consider this one important factor that might affect your property transaction plans: Seller’s Stamp Duty (SSD).

You might have already heard of the term ‘SSD’ before, but do you know exactly what it is and how it will affect you as a seller?

Table of Contents:

  1. What is a Stamp Duty?
  2. What is Seller’s Stamp Duty?
  3. SSD rates from 20 Feb 2010 to 10 Mar 2017
  4. SSD rates from 11 March 2017 onwards
  5. Date of purchase or acquisition
  6. Date of disposal
  7. Sample scenario
  8. When do you not need to pay SSD?

What is a Stamp Duty?

Before we get into SSD, let’s first define the term ‘stamp duty’ — a term commonly used for property transactions in Singapore.

In essence, it is tax levied on documents relating to properties, stocks or shares, and is payable just like other taxes, to the Inland Revenue Authority of Singapore (IRAS).

There are three notable stamp duties in the lion city: the Buyer’s Stamp Duty (BSD), Additional Buyer’s Stamp Duty (ABSD), and Seller’s Stamp Duty (SSD).

In this article, we’ll be focusing on the last one: Seller’s Stamp Duty.

So, what is Seller’s Stamp Duty (SSD)?

SSD is basically the tax payable to IRAS if you sell a property within the first three years of purchasing it. The three-year, minimum holding period requires you to hold on to your property for three years before selling it.

The government imposed the SSD as a cooling measure to curb the practice of ‘property flipping’, where property investors sell their properties within months of purchasing it. This practice is popular mostly in the U.S., but hasn’t quite caught on in Singapore. Probably because of the extra fees they might incur with the SSD in place.

As with other cooling measures, the SSD rates have undergone several revisions over the years.

When it was first introduced in February 2010 (plus all the changes that lead to the final revisions imposed on 11 March 2017), the SSD rates were as such:

Source: IRAS

SSD rates from 11 March 2017 onwards

Source: IRAS

Keep in mind that the SSD amount you have to pay is calculated off either the property’s selling price or market valuation, whichever is higher.

Also, in the event that the sale comprises only a partial interest in the residential property (which means that you own a portion of the property only), the payable SSD will also be based on the selling price or market value of the partial interest, whichever is higher.

Date of purchase or acquisition

Another thing to note is the date of purchase or acquisition, as it will determine when the holding period will begin. In most instances, the date of purchase or acquisition of a property refers to any of the following:

  • Date of Acceptance of the Option To Purchase (OTP)* or
  • Date of Sale and Purchase Agreement or
  • Date of Agreement for Lease (for new HDB flat) or
  • Date of Transfer where the first three points are not applicable

*Excludes an OTP that is subject to the execution or signing of the Sale and Purchase Agreement

Date of disposal

Meanwhile, the date of disposal of a property refers to any of the following:

  • Date of Acceptance of the OTP* by the buyer to the seller’s offer to sell or
  • Date of Sale & Purchase Agreement or
  • Date of Transfer where (a) and (b) are not applicable

*Excludes an OTP that is subject to the execution or signing of the Sale and Purchase Agreement

Here’s a sample scenario:

how-soon-can-you-sell-your-condo-after-buying-it
SSD is basically the tax payable to IRAS if you sell a property within the first three years of purchasing it.

Let’s say Seller A purchased his property on 17 March 2017 and sold it on 1 February 2018 for $1.5 million. The holding period here is less than one year; for properties bought on and after 11 March 2017, the SSD rate is 12%.

As such, the SSD payable for Seller A is: $1.5 million x 12% = $180,000.

Pro tip: When computing the SSD, you need to consider two main factors, which are the period of transaction and the holding period. From there, calculating the percentage payable will be relatively straightforward and easy to do.

When do you not need to pay SSD?

On the other hand, there are several instances where exemptions from paying the SSD apply. They are:

  • Licensed housing developers who are governed under the Housing Developers (Control and Licensing) Act when selling residential properties developed by them.
  • Public authorities (such as HDB or JTC) in exercising their functions and duties when selling residential properties.
  • Residential property owners when their properties are acquired by the Government under the Land Acquisitions Act.
  • Residential property owners when selling their residential properties due to bankruptcy or involuntary winding up.
  • Foreigners when they have to sell their residential properties as required under the Residential Properties Act.
  • HDB flat sellers or transferors who bought or acquired their flats on or after 30 Aug 2010 and their flats have been identified for Selective En-Bloc Redevelopment Scheme (SERS) but sell their flats in the open market prior to HDB claiming them.
  • HDB flat sellers or transferors who return their flats to HDB as a result of re-possession by HDB or under the SERS.

Calculate your SSD with the help of an Ohmyhome Super Agent

While selling your home can potentially bring in tidy returns, do remember to factor in possible expenses such as Seller’s Stamp Duty, and also fees for your property agent if you’re looking to hire one. Ohmyhome’s Super Agents offer specialised service at a very affordable fee.

Our finest insights you'll be looking forward to receive.

Our finest insights you'll be looking forward to receive.

Read by 200,000 Homies. Enter your best email below to join in.

Read by 200,000 Homies. Enter your best email below to join in.

Unsubscribe anytime.

Unsubscribe anytime.

Consult an expert for free!

Send us your details and we’ll be in touch within 15 min (daily 9am to 9pm GMT +8).

or

Contact us your way

Talk to us today. Available daily 9 AM to 9 PM (GMT +8)

Our finest insights you'll be looking forward to receive.

Read by 200,000 Homies. Enter your best email below to join in.

Unsubscribe anytime.

SHARE WITH YOUR FRIENDS!

Featured Blogs

Highlighting unique property views for every Singaporean