As a professional, it is important to understand the significance of staying up-to-date with the most recent developments in taxation and legal policies. In this article, we will be discussing the latest stamp duty rate for contract in Singapore.
Firstly, let us understand what stamp duty is. Stamp duty is a tax levied on legal documents that are related to property, shares, and loans. In Singapore, the Inland Revenue Authority of Singapore (IRAS) is responsible for collecting stamp duty payments.
When it comes to property transactions, stamp duty is collected on contracts or agreements for the sale and purchase of properties. The amount of stamp duty to be paid depends on the value of the property and the buyer`s nationality status.
Recently, the Singapore government has announced a new stamp duty rate for contracts involving residential properties. Effective from 20th February 2018, the stamp duty rate has been increased from 3% to 4% for buyers who are Singapore citizens or permanent residents purchasing their second and subsequent residential properties.
For buyers who are non-Singapore citizens and non-permanent residents, the stamp duty rate for their first residential property remains at 15%. However, for their second and subsequent residential properties, the stamp duty rate has been increased to 20%.
It is important to note that these stamp duty rates apply to contracts or agreements that are signed on or after 20th February 2018. If the contract or agreement was signed before this date, the previous stamp duty rates will apply.
In conclusion, it is vital for individuals involved in property transactions to be aware of the latest stamp duty rates to avoid any potential penalties or legal issues. The new stamp duty rate for contracts involving residential properties has been increased, and it is advisable to consult a tax professional or legal expert for further advice on how to proceed with property transactions.