Stamp Duty Deferment - till 14 March 07
Tuesday, December 19th, 2006Withdrawal of 1998 Off-Budget Concession on Stamp Duty Deferment
A concession to defer Stamp Duty payment on all contracts was introduced in June 1998 as part of the off-budget measures to cushion the impact of economic slowdown. The concession allows property buyers to pay the Stamp Duty at a later date. For newly constructed properties, the due date is the date of Temporary Occupation Permit (TOP). For completed properties, the payment is due when the property sale is completed.
The Government has decided to withdraw the concession with immediate effect (from 15 December 2006) as the economic conditions and the property market have improved.
With the withdrawal of the concession on 15 December 2006, the normal treatment would apply, that is, a property buyer is required to pay Stamp Duty within 14 days from the date of acceptance of the Option to Purchase.
However, buyers who have accepted their Options to Purchase before 15 December 2006 are not affected by the new rule. They would continue to enjoy the Stamp Duty deferment concession.
As a transitional measure, buyers who accept the Option to Purchase or sign the Sale & Purchase Agreement between 15 and 31 December 2006, will have up till 14 March 2007 to pay the Stamp Duty without any penalty.
These buyers are required to complete and send a prescribed form to the Commissioner of Stamp Duties within 14 days after accepting the Option to Purchase or signing the Agreement. The form is available at IRAS website.
