MOF subjects residential properties transferred into living trust to 35% ABSD

The ABSD will apply to transfers made on or after 9 May.

Residential properties transferred into a living trust on or after 9 May will be subject to a 35% Additional Buyer’s Stamp Duty (ABSD), the Ministry of Finance (MOF) has announced.

Unlike before, the ministry said the ABSD will now be payable even if there’s no identifiable beneficial owner at the time of transfer.

The MOF said the ABSD (Trust) is to be payable “upfront,” when the property is being transferred.

Meanwhile, the MOF said a trustee can still apply to the Inland Revenue Authority of Singapore (IRAS) if they meet the following conditions:

1. All beneficial owners of the residential property are identifiable individuals;
2. Beneficial ownership of the residential property has vested in all of these beneficial owners at the time of property transfer into the trust; and
3. The beneficial ownership cannot be varied or revoked, or be subject to any condition subsequent, under the terms of the trust.

The refund amount to be given to trustees will be based “on the difference between the ABSD (Trust) rate of 35% and the ABSD rate corresponding to the profile of the beneficial owner with the highest applicable ABSD rate.”

Application for refund must be made within six months after the transfer of property.