Seller's Stamp Duty (SSD)
If you are selling a Residential property that brought less than three years ago, you’d have to pay additional taxes, known as the Seller’s Stamp Duty (SSD)!
Determining SSD Liability
Whether the disposal is subject to SSD and the amount payable will depend on:
The type of property sold or disposed
The date of purchase or acquisition
The date of sale or disposal
Rates applicable
What is Seller’s Stamp Duty?
Seller’s Stamp Duty is a cooling measure to prevent house-flipping and control property prices introduced in 2010, its terms have been revised several times across the years.
SSD is the tax payable when you sell residential properties and lands within their minimum holding period. The minimum holding period before no SSD is payable is three years.
Date of Purchase or Acquisition
the date of purchase/ acquisition of a property refers to:
Date of Acceptance of the Option to Purchase* or
Date of Sale and Purchase Agreement or
Date of Agreement for Lease (for new HDB flat) or
Date of Transfer where the above (1), (2) and (3) are not applicable
*Excludes an option to Purchase that is subject to the execution/ signing of the Sale and Purchase Agreement
In some instances, the date of purchase/ acquisition of an interest in a property depends on the manner which it was acquired:
Transfer pursuant to divorce where it fulfills;
Date of the Marriage (that has ended); or
Date the interest was acquired by the transferor prior to the transfer; whichever is later.
BSD, ABSD and SSD remission may be applicable
Transfer pursuant to inheritance
Date the interest was acquired by the deceased
Transfer of HDB Flat within Family where it fulfills Stamp Duties
Earliest date of acquisition of the flat by any of the existing owners, and who continually holds an interest in the flat from the time of acquisition to disposal
BSD, ABSD and SSD remission may be applicable
Date of Sale or Disposal
the date of sale/ disposal of a property refers to:
Date of Acceptance of the Option to Purchase* by the buyer to the seller's offer to sell or
Date of Sale and Purchase Agreement or
Date of Transfer where (1) and (2) are not applicable
*Excludes an option to Purchase that is subject to the execution/ signing of the Sale and Purchase Agreement
SSD Rates
SSD rate is based on the higher selling price or the market value as of the date of sale or disposal.
Where parts of the residential property were acquired by the vendor at different times, the holding period for each part acquired will be computed from the respective acquisition date.
Where the sale or disposal comprises only a partial interest in the residential property, SSD payable will be based on the higher selling price or market value of the partial interest.
Here are the SSD rates for property purchased on or after 11 March 2017.
| Holding Period | SSD Rate |
|---|---|
| Up to 1 year | 12% |
| More than 1 year and up to 2 years | 8% |
| More than 2 years and up to 3 years | 4% |
| More than 3 years | No SSD payable |
Exemptions from SSD
here are some situations where sellers are exempted from SSD:
Licensed housing developers who are governed under the Housing Developers (Control and Licensing) Act need not pay SSD when selling residential properties developed by them.
Public authorities (e.g. HDB and JTC) in exercising their functions and duties need not pay SSD when selling residential properties.
Residential property owners need not pay SSD when their properties are acquired by the Government under the Land Acquisitions Act.
Individuals who own residential properties need not pay SSD if they have been adjudged bankrupt and are required to dispose of their residential properties as a result of bankruptcy.
Companies that own residential properties need not pay SSD when disposing of their residential properties upon involuntary winding up.
Foreigners need not pay SSD when they have to sell their residential properties as required under the Residential Property Act.
For 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 Enbloc Redevelopment Scheme (SERS) but sell their flats in the open market before HDB claims them.
HDB flat sellers or transferors who return their flats to HDB as a result of re-possession by HDB or under the SERS.
A person who owns an HDB flat and inherits another HDB flat is required under the HDB’s regulations to dispose of either the inherited HDB flat or the existing HDB flat. This exemption applies to the disposal of flats on or after 18 Dec 2015.
A person who owns a non-HDB flat and inherits an HDB flat is required under the HDB’s regulations to dispose of the inherited HDB flat. This exemption applies to the disposal of flats on or after 18 Dec 2015.
A person who owns an HDB flat marries a person who owns another HDB flat and the couple is required under the HDB regulations to dispose of either one of the HDB flats. This exemption applies to the disposal of flats on or after 18 Dec 2015.
It’s best to wait for at least three years before selling your property so you won’t have to pay the SSD.
FAQs
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SSD must be paid within 14 days from the date of the executed sale contract, otherwise, a penalty will be imposed for late stamping and payment. There is no deferment of stamp duty payment.
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All owners (consenting or not) whose properties were sold within the prescribed SSD holding period are liable to pay the SSD within 14 days from the date of the executed collective sale contract. In your case, you would be liable to pay 4% SSD.
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No, you are not required to pay SSD on the sale of the inherited property. As the transfer of the property to you was pursuant to inheritance, the date of your acquisition of the property is treated as the date on which your late father purchased the property (i.e. 1 Sep 1998) for SSD purpose.
