MoF slaps equity interests in PHEs transferred into living trusts with addt’l conveyance duties

The ACD will apply to transfers made on or after 10 May.

Equity interest of property holding entities (PHE) which are transferred into living trusts on or after 10 May will be subject to additional conveyance duties (ACD Trust), the Ministry of Finance (MoF) announced Monday.

MoF said the ACD Trust will now apply on transfers of equity interests in PHEs into all living trusts “where the significant ownership threshold has been reached, even if there is no identifiable beneficial owner of such equity interests at the time of transfer.”

“In determining whether this threshold for significant ownership is reached in a case of a living trust with non-identifiable beneficial owners, we will consider the equity interests that the trustee holds for the trust, together with those held by his associates,” the MOF said.

If interest in a residential property held on trust is renounced by a beneficial owner, MoF will also impose Buyer’s Stamp Duty (BSD) and, where applicable, ABSD and Seller’s Stamp Duty (SSD), where:

• A residential property is transferred into a living trust on or after 10 May 2022;
• All the beneficial owners of the residential property are identified at the time of
• transfer; and
• A beneficial owner of that property renounces his interest in the property on or
• after 10 May 2022.

Together with the ABSD Trust, MoF said the ACD Trust will “plug a gap in the existing ABSD and ACD regime.”

Earlier on 8 May, MoF announced that a 35% Additional Buyer’s Stamp Duty will apply to residential properties transferred into a living trust.