Cooling Measure for the Industrial Property Market
-
Upload
william-chui -
Category
Documents
-
view
214 -
download
0
description
Transcript of Cooling Measure for the Industrial Property Market
COOLING MEASURE FOR THE INDUSTRIAL PROPERTY MARKET
Seller’s Stamp DutyWEF 12 January 2013
OBJECTIVE
The Government is introducing Seller’s Stamp Duty (SSD) on industrial property to discourage short‐term speculative activity which could distort the underlying prices of industrial properties and raise costs for businesses.
THE FOLLOWING SSD RATES WILL BE IMPOSED ON INDUSTRIAL PROPERTIES AND LAND BOUGHT AND SOLD WITHIN THREE YEARS OF THE DATE OF PURCHASE:
SSD at 15% if the property is sold in the first year of purchase, i.e. the property is held for one year or less from the date of purchase.
SSD at 10% if the property is sold in the second year of purchase, i.e. the property is held for more than one year and up to two years from the date of purchase.
SSD at 5% if the property is sold in the third year of purchase, i.e. the property is held for more than two years and up to three years from the date of purchase.
DETERMINING SSD LIABILITY
Whether SSD is payable and the rate will depend on:A. The type of property sold or disposedB.The date of purchase or acquisitionC. The date of sale or disposal
DATE OF SALE OR DISPOSAL REFERS TO
1. Date of exercise of OTP by the buyer or2. Date of S&P signed by the buyer or3. Date of transfer where (1) and (2) are not
available nor applicable
THE DATE OF PURCHASE OR ACQUISITION
If an industrial property is purchased on or after 12 Jan 2013, SSD is payable if the industrial property is sold within the holding period.
Purchased on or after 12/1/2013 >> SSD applies
THE DATE OF SALE OR DISPOSAL
Date of Purchase / Acquisition or Date of Change of Zoning / Use
Holding Period SSD Rate (on the actual price or market value, whichever is higher)
On or after 12 Jan 2013 Up to 1 year 15%
More than 1 year and up to 2 years
10%
More than 2 years and up to 3 years
5%
More than 3 years No SSD payable
NOTES:
Where land is sold with existing building, the liability for SSD will be based on the zoning of the land in the Master Plan.
For non‐industrial property that is re‐zoned or the permitted use is changed to industrial, the date of acquisition of the property will be the date of rezoning or the change of use.
SSD payable to be rounded down to the nearest dollar.
SUMMARY OF SSD
Industrial property (B1 / B2)
Date of Purchase or Acquisition / Date of change of zoning or use : On or after 21/1/2013
Date of sale or disposal determined by following: (either one)
1. Date of exercise of OTP by the buyer
2. Date of S&P signed by the buyer
3. Date of transfer where (1) and (2) are not available nor applicable
SUMMARY OF SSD
0 – 1 year : 15%>1 – 2 years: 10%>2 – 3 years: 8%>3 years : NA
Summary of SSD
Sold within period
SOURCES
1. https://www.ura.gov.sg/uol/media‐room/news/2013/jan/pr13‐04.aspx
2. https://www.iras.gov.sg/irashome/Other‐Taxes/Stamp‐Duty‐for‐Property/Working‐out‐your‐Stamp‐Duty/Selling‐or‐Disposing‐Property/Seller‐s‐Stamp‐Duty‐‐SSD‐‐for‐Industrial‐Property/
CALL WILLIAM CHUI : (+65)8111‐5505