As of February 16, 2024, Singaporean citizens aged 55 and above have a new opportunity to claim a refund on Additional Buyer's Stamp Duty (ABSD) paid for their second residential property. This initiative is designed to provide financial relief for single seniors who fulfill specific criteria outlined by the government. Let's delve into the conditions and application process for this ABSD refund.

Conditions for ABSD Refund Eligibility

To qualify for the ABSD refund, single Singaporean citizens aged 55 and above must meet the following conditions:

1. ABSD Payment on Second Residential Property: The ABSD must be paid on the second residential property.

2. Ownership of First Residential Property: The first residential property must be solely owned by a single Singaporean citizen aged 55 and above or co-owned with single Singaporean citizens aged 55 and above, who are immediate family members.

3. Common Ownership of First and Second Residential Properties: The owners of the first residential property must also be the owners of the second residential property. Additional owners, if any, must also be single Singaporean citizens aged 55 and above and immediate family members.

4. Limit on Residential Property Ownership: Buyers should not own more than one residential property each at the time of purchasing the second residential property. Additionally, they should not have acquired any other residential property since the purchase of the second property.

5. Timely Disposal of First Residential Property: The first residential property, whether co-owned or separately owned, must be disposed of within six months after the purchase date for completed properties or the issue date of the Temporary Occupation Permit (TOP)/Certificate of Statutory Completion (CSC), whichever is earlier, for uncompleted properties.

6. Consistent Ownership in the Second Property: There should be no change of ownership in the second residential property at the time of selling each first residential property.

7. Value Comparison: The value of the second residential property must be less than the value of each of the first residential properties sold.

8. Timely Application for Refund: The application for the refund of ABSD must be submitted within six months after the date of sale of the first residential property.

How to Apply for ABSD Refund

Applying for the ABSD refund is a straightforward process through the e-Stamping Portal. Here are the steps:

1. Access the e-Stamping Portal:
   - Select "Request."
   - Choose "Apply for Assessment / Appeal."
   - Opt for "Assessment (including remission and penalty)."

2. Document Stamping:
   - If the document is stamped, select "Yes" and enter the Document Ref No.
   - If not stamped, proceed to stamp the document by selecting "Stamping" > "Sale & Purchase – Purchase/Acquisition."

3. Form Submission:
   - Complete the online form after entering the document details.
   - Under "Supporting Documents," indicate "ABSD Concession for Single SC Seniors."
   - Submit the form with the necessary details.

4. Required Supporting Documents:
   - Copy of the exercised Option to Purchase/Sale and Purchase Agreement for the purchase of the second residential property.
   - Copy of the exercised Option to Purchase/Sale and Purchase Agreement for the sale of the first residential property(s).

By adhering to these steps and meeting the specified conditions, eligible single Singaporean citizens aged 55 and above can successfully apply for an ABSD refund on their second residential property. This initiative not only eases the financial burden for seniors but also encourages the efficient use of housing resources in Singapore.

Frequently Asked Questions (FAQs)

Can I get an upfront remission of ABSD instead of paying ABSD first?

Yes. Buyers of HDB flats or new EC units receive an upfront remission of Additional Buyer's Stamp Duty (ABSD). This is primarily due to the HDB regulations that prohibit these buyers from owning other residential properties or mandate the disposal of their existing residential property within the specified timeframe.

Can I appeal for a longer period to sell my first property because 6 months timeline is too short?

No, you should start planning for the sale of your first property before you set sights to buy your second property. Engage a professional real estate agent to assist you in the timeline for sale and purchase.