http://business.asiaone.com/Business...13-339540.html
Friday, Apr 13, 2012
The Business Times
Taxman collects $110m from ABSD
The taxman collected about $110 million in additional buyer's stamp duty between Dec 8 last year - when ABSD took effect - and March 31 this year. The sum includes $66.2 million in ABSD from foreigners who bought 369 private homes over the near four-month period.
The 369 properties are "roughly equivalent to a single month's transactions by foreign buyers before ABSD" said Credo Real Estate executive director Ong Teck Hui. "The data goes to show that the ABSD has probably achieved its intended effect of curbing foreign buying," he added.
The Inland Revenue Authority of Singapore also disclosed yesterday that while 73 per cent of the 1,478 residential property transactions on which ABSD was levied were by Singaporeans and permanent residents, 65 per cent of the total ABSD in dollar terms was paid by foreigners and non-individuals.
"This is due to the higher applicable ABSD rate for foreigners and non-individuals at 10 per cent, as compared to the applicable ABSD rate of 3 per cent for Singapore citizens on their third and subsequent residential property purchase and on PRs for their second and subsequent residential property purchase," IRAS said.
Foreigners and non-individuals (such as corporate entities) have to pay the 10 per cent ABSD on any residential property purchase.
IRAS data also showed that ABSD was levied on 369 residential properties bought by foreigners over nearly four months.
A caveats analysis by R'ST Research shows that the number of caveats lodged for private home purchases by foreign buyers has fallen from 436, 391 and 530 in October, November and December respectively last year to 56, 137 and 78 in January, February and March this year.
Foreign buyers' share of total transactions has also dwindled from 20 per cent, 17 per cent and 23 per cent in October, November and December 2011 to 7 per cent each in January and February and 4 per cent in March.
The March figures are preliminary, with more caveats expected to stream in over the next few weeks. Mr Ong attributes the spike in foreign buying in December to the fact that caveats are usually lodged some time after the contracts.
Hence the December numbers partly reflect deals entered into during part of November. IRAS did not provide a further split between Singaporeans and PRs who had to pay ABSD.
ABSD, like the standard buyer's stamp duty (BSD), is payable within 14 days of: the date of exercise of option to purchase (OTP) or contract; or the date of sale and purchase agreement (where no OTP is granted); or date of transfer where the first two scenarios are not available or applicable.
Reply With Quote
Originally Posted by Lovelle
