Saturday, April 14, 2012

Confusion over new property rule

Straits Times: Sat, Apr 14
THERE is confusion in property circles about how the new stamp duty will be applied to certain types of real estate.

The biggest grey area centres on whether commercial units such as shops or offices built within residential developments on residential-zoned land will be subject to the additional buyer's stamp duty (ABSD) and seller's stamp duty (SSD).

Industry players say it is unclear what defines a 'residential property' that would incur the duties: Is it the approved use of the units or the zoning of the land under the Urban Redevelopment Authority's (URA) masterplan?

They add that queries to the Inland Revenue Authority of Singapore (Iras) have generated varying replies, especially regarding units in mixed-use land zoning.

There also seems to be difficulty pinning down exactly how the ABSD will be applied because the latest e-tax guide is unclear on this area.

An Iras spokesman said that 'in general, properties approved for commercial use on residential land should not be subject to the ABSD or SSD'...

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