[IRAS] Budget 2018 "Changes to the Stamp Duty Structure"

With reference to the Budget 2018 update issued by the Inland Revenue Authority of Singapore (IRAS) on the changes to the rate structure of the buyer’s stamp duty (BSD) with effect from 20 February 2018.

Please Click Here for the Circular.

Real estate agents and their salespersons are to take note and inform their clients that BSD rates are differentiated between residential and non-residential properties. The top marginal BSD rate for residential properties has been increased to 4% where the consideration or market value exceeds $1 million. There are no changes to the BSD rates for non-residential properties.
IRAS is conducting a Stamp Duty seminar next Monday, 26 February 2018, 5-6 pm, at the Revenue House Auditorium to brief on the BSD changes, the new remissions for BSD and changes in the e-Stamping Portal. To register for the seminar, please visit IRAS website.
If you or your salespersons require further clarification pertaining to the above, please refer to IRAS’ e-Tax Guide on Buyer’s Stamp Duty on Residential and Non-Residential Properties.

[HDB] Enhanced Proximity Housing Grant

Minister for Finance, Mr Heng Swee Keat announced during the Budget Statement in Parliament yesterday that the Government will enhance the Proximity Housing Grant (PHG) to encourage married couples, singles, and their parents to live closer together, in the same flat or nearby, for stronger family support.

The enhanced PHG are summarised below:

(A)     Increase in PHG for Extended Families to Live Together

To further encourage extended families to live together in the same flat for better care and support, families who buy a resale flat to live with their parents or children (who are married or singles aged 35 and above) will now enjoy a higher-tier PHG of $30,000, up from $20,000 previously. Those buying a resale flat to live near their parents or children will continue to receive a PHG of $20,000.

(B)     Enhancement of PHG for Singles

Singles aged 35 and above who buy a resale flat to live with their parents will receive the higher-tier PHG of $15,000, up from $10,000 previously. To encourage mutual care and support, singles who buy a resale flat to live near their parents will now enjoy a new PHG of $10,000.

(C)     Simplified Proximity Condition

The proximity condition for determining what is considered as “near” will be simplified. Previously, it was defined as within 2 km or the same town. HDB will revise this to just “within 4 km”. This revision will give home buyers more options when they buy a resale flat to live near their parents or children, including in nearby towns..

The enhancements to the PHG for families and singles are summarised in this table:

Enhanced PHG for Married/Single Child and Parents

Resale Flat Buyers Proximity Condition Enhancements
To Live With Parents/Child To Live Near Parents/Child (Within 4km)
Family $30,000 $20,000
Singles aged 35 and above $15,000 $10,000

The enhanced PHG will apply to eligible resale flat applications received on or after 3.30 pm, 19 February 2018. For more details, you may refer to the press release and the HDB InfoWEB.

[HDB] "Changes to Policies for the Renting out of HDB Flats and Living Quarters

HDB has announced changes to their policies for the renting out of HDB flats and living quarters of commercial properties, which will take effect from 1 May 2018.
Please Click Here for a copy of the press release that HDB has issued on the matter.
You may also refer to HDB InfoWEB at www.hdb.gov.sg/rentoutflatrules (renting out of whole flats) or www.hdb.gov.sg/rentoutroomrules (renting out of bedrooms) and www.hdb.gov.sg/LQrentingoutrules(renting out of living quarters) for information on the policy changes.