{"id":47277,"date":"2017-03-09T10:48:36","date_gmt":"2017-03-09T03:48:36","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-to-amend-absd-rules-to-include-share-transfer\/"},"modified":"2017-03-09T10:49:48","modified_gmt":"2017-03-09T03:49:48","slug":"govt-to-amend-absd-rules-to-include-share-transfer","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-to-amend-absd-rules-to-include-share-transfer\/","title":{"rendered":"Gov\u2019t to amend ABSD rules to include share transfer"},"content":{"rendered":"


\nNational Development Minister Lawrence Wong announced plans to plug ABSD loophole. Source: Wikimedia Commons
\nThe authorities are planning to amend the rules to plug a loophole that allows some companies to avoid paying Additional Buyers Stamp Duty (ABSD), by acquiring shares in a company that owns the property, rather than buying the property outright, reported the Straits Times.
\n\u201cIn principle, we should treat transactions in residential property on the same basis, regardless of whether a property is transferred directly or through a transfer of shares in a company whose primary business is in residential property in Singapore,\u201d said National Development Minister Lawrence Wong in reply to a proposal from MP Yee Chia Hsing during a parliamentary session yesterday (8 March).
\nPreviously, several large transactions made headlines for using this method to lower their tax bill. In January, Veteran banker Wee Cho Yaw purchased 45 remaining units at The Nassim, a luxury condominium, by acquiring the entire stake of Nassim Hill Realty for S$411.6 million.
\nLast July, CDL bought its joint venture partner\u2019s (Wing Tai Holdings) interest in Summervale Properties, which owns the Nouvel 18. It subsequently disposed the condo via a S$977.6 million profit participation securities platform.
\nMeanwhile, Edmund Tie and Co\u2019s Research Head for Southeast Asia, Dr Lee Nai Jia, believes that the move would negatively affect property developers with many remaining unsold residential units.
\n\u201cDevelopers will have to consider\u2026 the costs of each option, including share transfer, giving discounts or paying the extension and ABSD charges while waiting for the market to improve.\u201d
\nBut if this loophole isn\u2019t plugged, more home buyers could take advantage of it, he added.
\nAt present, Singapore citizens buying their first house are exempt from ABSD, but they need to pay a stamp duty of seven percent and 10 percent for their second and subsequent purchases, respectively.
\nPermanent residents are required to pay five percent for their first flat and 10 percent for the succeeding ones, while foreigners and corporate entities are obliged to fork out an ABSD of 15 percent for all purchases.
\nHowever, if the residential property was acquired via the purchase of stocks or shares of a holding firm, the transaction only incurs a tax based on 0.2 percent of the company\u2019s net asset value.
\nThis article was edited by Chang Hui Chew.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Gov\u2019t to amend ABSD rules to include share transfer<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

National Development Minister Lawrence Wong announced plans to plug ABSD loophole. Source: Wikimedia Commons The...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-47277","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-cix","jetpack-related-posts":[{"id":8215,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/still-too-early-to-remove-cooling-measures-wong\/","url_meta":{"origin":47277,"position":0},"title":"Still too early to remove cooling measures: Wong","date":"March 1, 2016","format":false,"excerpt":"\r National Development Minister Lawrence Wong. 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