Created by Cc Thum
Property Law course for Real Estate Salesperson in Singapore
PAYMENT OF SSD.
(i) Before completion.- Conditions Sale 2012,
PAID - Condition 7.4. - Vendor notify purchaser # >=5 clear Business Days before Completion Date # evidence of payment ... certified copy of form of declaration (Commissioner of Stamp Duties) + certificate of stamp duty ( if applicable).
NOT PAID- Condition 7.4.2- Purchaser entitled / not obliged to deduct from purchase price # SSD charged on the Contract # any penalties.- No action against the Purchaser
(4) GOODS & SERVICES TAX (GST) wef 1 April 1994- Goods and Services Tax Act, Sec 8(2)-
"taxable person" registered i.e. RES!- Business with annual turnover >$1 million.- GST on supply of movable furniture and fittings (NOT fixtures).
EXEMPT: sale and lease of "residential properties".
PREMISES: Parties, Property
HABENDUM: (How long) Term, Commencement date
REDDENDUM: Rent, Premium, Deposit
COVENANTS: Rights & Obligations.
(B) INDUSTRIAL PROPERTY bought after 12 Jan 2013.
# 1 year - 15%
# 2 years - 10%
# 3 years - 5%
NOTE:Date of rezoning in Master Plan / change of use to industrial zones / uses = date of acquisition.
(A) RESIDENTIAL PROPERTY:
+ BUYER'S STAMP DUTY (BSD)
# $360K - $1 mil. = 3%-$5.4K
# >$1 mil. = 4%-$15.4K
+ ADDITIONAL BUYER'S STAMP DUTY (ABSD)
NOTE: Refer to (C) below purchases by "Singapore Citizens" (SC).
(B) NON-RESIDENTIAL PROPERTY# 1st $180K = 1%# 2nd $180K = 2%# >$360K = 3%-$5.4K
SSD based on sale price / market price during holding period.
(A) RESIDENTIAL PROPERTY bought
(I) 14 Jan 2011 to 10 Mar 2017.# 1 year - 16%# 2 years - 12%# 3 years - 8%# 4 years - 4%
(II) 11 Mar 2017 onwards.# 1 year - 12%# 2 years - 8%# 3 years - 4%
(1) STAMP DUTY
- Dutiable documents (NOT transactions)
- Immovable property in Singapore i.e. sale & purchase, lease, gift, mortgage
- Stocks and shares
- Stamp Duties Act 1st Schedule
STAMPING TIMELINE from signing/execution
- in Singapore: 14 days
- overseas: 30 days
DELAY: higher of - $10 / duty payable if <= 3 months- $25 / 4 x duty payable if >3 monthsUnstamped documents not admissible as evidence in court
TRUSTEE i.e. purchase property with misappropriated funds from
TRUSTOR (company)
SUBLETTING / SUBLEASE:
Landlord, Tenant + Sub-tenant.
ASSIGNMENT: Transfer interest.
NOVATION: Tripartite agreement replacing contract with new contract same terms between one original party and third party.
Cornet eSS = Construction and Real Estate NETwork e-Submission System
TRUSTEE registered owner
TRUSTOR paid full purchase price
TRUSTOR / DONOR /SETTLOR entrusts property to
TRUSTEE to hold & administer for
BENEFICIARY
Shares
Qualified
Person
(1.7) ADDITIONAL CONVENYANCING DUTIES- wef 11 Mar 2017- ACD on
## sale(seller within 3 years of acquisitions: 12%) and
## purchase (purchaser: 1%-4% residential properties value, 30% on value of assets, 0.2% on share transfer) of residential properties in property-holding entities (PHE) by significant owners (persons / entities) =>50% of the PHE or become one after purchase.
Right of survivorship
(C) ADDITIONAL BUYER'S STAMP DUTY (ABSD)- w.e.f. 12 Jan 2013- on all (wholly / partly) residential properties, all land zoned Residential.
- Excluded: gazetted for compulsory acquisition.
- ABSD is based on purchase price/market value whichever is higher.
- No ABSD for "Singapore Citizens" (SC) purchasing first residential property.
- SC include foreigners under Free Trade Agreements (FTA) i.e. L.I.N.U.S.-
FULL count of properties includes Partial / Joint Ownership.
- TABLE 1 (SC+SC), 2 (SC-SPR), 3 (SC-FR), 4 (SPR-FR)
REMISSION of ABSD- lower ABSD rate / full remission - Co-purchase by MARRIED COUPLE ...SC SPOUSE.-
NOTE: No remission for SPR-FR couple (Table 4).
- Submit an application for remission to IRAS.
- ABSD withheld pending approval.
- BSD must be paid.
REFUND of ABSD
- Married couple ... SC spouse
(i) 2nd property purchase: Paid ABSD
(ii) 1st property sold: within 6 months from date of purchase or TOP/CSC of 2nd residential property.
(iii) 3rd property: No purchases between (i) and (ii).
(3) INCOME TAX on all income- with Singapore source or - received in Singapore even if source in foreign country.
(I) PASSIVE INCOME:- taxable under Income Tax Act Sec 1(f).- rents, royalties, premiumsRENTAL INCOME:(A) Net amount taxable when due and payable (not the date of actual receipt). # Rental income of premises, maintenance, furniture, fittings
DEDUCTIONS: - allowable expenses i.e. property tax. - solely for purpose of producing rental income & - during period of tenancy.
(a) RESIDENTIAL PROPERTIES - wef 1 April 2016: (i) Pre-filled rental expenses (online tax form) of 15% of gross rent of + can claim mortgage interest on loan to purchase tenanted property. Keep documents for 5 years.(ii) claim actual rental expenses incurred with supporting documents kept for 5 years.
(b) TENANTED NON-RESIDENTIAL PROPERTY:only claim actual rental expenses incurred.(B) Jointly owned property- Rental income taxed- Rental loss apportionment. - On all joint owners based on share.(II) GAIN FROM SALE OF PROPERTY
(a) Capital gains are not taxable.
(b) Taxable if trading in properties based on
- frequency
- reasons for acquiring / selling
- financial means ... long term holding period
PROPERTY TAX- on Immovable property- in the Valuation List (VL)- based on Annual Value (AV)
# Gross amount property reasonably expected to be let from year to year.
# Revised whenever market rents change
# May not reflect actual rents
# Reviewed annually.- Property Tax Act Sec 6(1).- "owner" - may or may not be legal owner i.e. person receiving rent, agent, trustee, representative, name in VL.
(1.6) MORTGAGES
- Maximum duty of $500.
- Refer to the Table i.e. 0.4%(LM/VM), 0.2%(EM/T/A).
BUDGET 2013 wef 1 Jan 2014
(1) RESIDENTIAL BUILDINGS
(a) unoccupied despite reasonable efforts to find a tenant. # Non-owner-occupied residential bldgs property tax rate.
(b) undergoing repairs/building works intended for owner-occupation. Condition: owner-occupied =>1 year after completion of repairs / works. #Owner-occupied tax rates for duration of repairs / works up to max 2 years.
(2) NON-RESIDENTIAL BUILDINGS(a) undergoing repairs to render fit for occupation or vacant despite reasonable efforts to find a tenant # Property tax rate of 10% for non-residential buildings.
(3) VACANT LAND (a) Undergoing housing development Intended for owner-occupation Condition: owner-occupied => 1 year after completion of house. $$ Owner-occupier tax rates for residential buildings for the duration of housing development up to max 2 years.(b) Other vacant land $$ 10% during development period.
(1.5) LEASES- Based on Average Annual Rent (AAR)
- AAR: Higher of the
# Average annual contractual rent
# Annualised market rent Includes payments for furniture & fittings, maintenance fee, conservancy charges where applicable.
(i) Leases <= 4 years- Higher of total contractual / market rent
(ii) Leases > 4 years- 4 times AAR
NOTE: Refer to Tables for documents executed(a) before 22 Feb 2014(b) on or after 22 Feb 2014.
PROGRESSIVE TAX RATES wef 1 Jan 2015(2.1) RESIDENTIAL PROPERTY (exclude residential land)- refer to table.
(2.2) OWNER-OCCUPIED HOMES- refer to table for concessionary tax rates- applied to one home owned and occupied- only current owners can apply
Not qualified: - company, association,..
Not applicable to non-residential properties/land
