I’m referring to the IRAS website on Stamp Duty and you’re supposed to pay this tax if:
Quick Calculation Formula: Stamp Duty = Sale Price x 3% – SGD5,400
However, if the price of the property falls below SGD360,000, this would be inaccurate. Remember we also have to round up to the nearest hundred dollars before calculating.
Peter bought a walk up apartment at the price of SGD500,000.00, his stamp duty fees will be [(SGD500,000 x 3%) – $5400] = SGD9,600
The real formula would be,
1% of the first SGD180,000, 2% of the next SGD180,000 and 3% of the remaining amount balance.
Let’s use the same formula for the above-mentioned property Peter bought.
[3% of ( SGD500,000 – SGD180,000 – SGD180,000)] + (2% of SGD180,000) + 1% of (SGD180,000) = ( 3% of remaining SGD140,000 ) + (2% of SGD180,000) + (1% of SGD180,000) = SGD4,200 + SGD3,600 + SGD1,800 = SGD9,600
Most of the time, the purchaser will be responsible for paying the stamp duty fees unless otherwise stated on the Sales & Purchase or Option to Purchase terms and conditions.
Please take note that upon execution of Sales and Purchase agreement in most cases, you’ll have to get your documents stamped within 14 days or within 30 days if you are overseas. Late stamping would be subjected to penalties for violating the Stamp Duties Act (Cap. 312)