If reading this, there is a good chance you already know that a married couple may be eligible for ABSD remission on the purchase of a residential property if the remission conditions under the Stamp Duties (Spouses) (Remission of ABSD) rules are met.
But do you know how to avoid ABSD? If not, there is no reason to panic since you have definitely come to the right place. For starters, full ABSD remission may be applicable to a married couple who buy a residential property jointly.
The said couple must include a Singapore Citizen (SC) spouse and the property must be purchased under both names of the couple only. Aside from this, both the spouses must not own any residential property. Both BSD and ABSD are payable upon stamping. But if you so meet eligibility conditions, you can apply for this ABSD remission instead of making ABSD payment.
It doesn’t end at that since ABSD remission may also be applicable to a married couple who buy a second residential property jointly, if the remission conditions are met. The couple need to include a Singapore Citizen and the property must be purchased under both names of the couple only.
You need to understand the condition under the Stamp Duties for spouses if you’re to learn How to avoid ABSD. Well, the married couple didn’t own interest in more than one residential property each at the date of the purchase of the second residential property. Moreover, ABSD shouldn’t have been paid on the second residential property.
As a rule of thumb, married couples should start marketing their first property early at realistic prices to ensure they can meet the six-month sale timeline for the ABSD refund. Since an extension of the six-month timeline will not be acceded to, married couples can consider to secure a buyer for the sale of their first property before purchasing their next property to avoid incurring ABSD.
It is worth mentioning that ABSD can be refunded for single Singaporeans aged 55 and above under specific conditions. This move, effective from Feb 16 2024, extends the ABSD confessions previously available only to married couples, facilitating more manageable transitions for older singles looking to adjust their living arrangements without the financial burden of additional taxes.
Ensure to learn more on How to avoid ABSD in Singapore to avoid leaving any stones unturned.
