Singapore: Increased stamp duty for foreign property buyers
Description
On 7 December 2011, the government of Singapore announced a disproportional increase of the stamp duty for foreign buyers of residential property.
In a move intended to dampen the rise of property prices, the Ministry of Finance introduced an Additional Buyer's Stamp Duty (ABSD) yielding a total stamp duty differing along nationalities:
- Foreign private and institutional buyers: 13 percent from the first piece of residential property.
- Permanent foreign residents: 6 percent from the purchase of their second property unit.
- Singaporean citizens: 6 percent from the third piece of residential property.
Prior to the change, the common stamp duty had been 3 percent regardless of units bought and nationality of the buyer.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: Yes
Date of inception: 8 Dec 2011
GTA Evaluation: Red
Source:
Ministry of Finance. (2011). Additional Buyer's Stamp Duty for a Stable and Sustainable Property Market. Available at http://app.mof.gov.sg/newsroom_details.aspx?type=press&cmpar_year=2011&n...
Government Response:
- 225 reads
