New Reporter
06-07-23, 18:15
About 250 property buys a year by foreigners exempted from ABSD under FTA obligations: DPM Wong
Jul 03, 2023
AN AVERAGE of 250 property transactions per year from 2018 to 2022 were exempted from the Additional Buyer’s Stamp Duty (ABSD) imposed on foreign buyers due to a “national treatment” obligation spelled out in two free trade agreements (FTAs), said Deputy Prime Minister Lawrence Wong on Monday (Jul 3).
These transactions accounted for about 2.5 per cent of all property transactions that attracted ABSD during the period, with the amount of ABSD remitted at about S$150 million per year, said Wong, who is also Minister for Finance, in a written parliamentary reply.
He was responding to questions from Workers’ Party Member of Parliament for Sengkang GRC Louis Chua.
Nationals and permanent residents of Iceland, Liechtenstein, Norway and Switzerland are accorded similar tax treatment as Singaporeans in the purchase of residential properties in Singapore under the “national treatment” obligation of the Singapore-European Free Trade Association (ESFTA), said Wong.
Likewise, the US-Singapore FTA also requires Singapore to grant similar “national treatment” in respect of stamp duty.
These two agreements were signed almost 20 years ago, before Singapore introduced the ABSD, Wong noted.
“The ‘national treatment’ obligations are part of the balanced package we sought to achieve in the FTAs, to ensure they provide meaningful benefits for Singapore when our companies and people trade with and invest in these countries,” he said.
For example, the “national treatment” benefits apply to Singaporeans when they invest in the US and the ESFTA countries, he added.
Wong also said the number of property transactions and value of ABSD remitted due to the two FTAs vary from year to year due to market conditions and prevailing ABSD rates.
In late April, Singapore raised the ABSD rates for residential properties in a bid to cool the market, with ABSD imposed on foreign buyers doubled to 60 per cent.
https://www.businesstimes.com.sg/singapore/about-250-property-buys-year-foreigners-exempted-absd-under-fta-obligations-dpm-wong
Jul 03, 2023
AN AVERAGE of 250 property transactions per year from 2018 to 2022 were exempted from the Additional Buyer’s Stamp Duty (ABSD) imposed on foreign buyers due to a “national treatment” obligation spelled out in two free trade agreements (FTAs), said Deputy Prime Minister Lawrence Wong on Monday (Jul 3).
These transactions accounted for about 2.5 per cent of all property transactions that attracted ABSD during the period, with the amount of ABSD remitted at about S$150 million per year, said Wong, who is also Minister for Finance, in a written parliamentary reply.
He was responding to questions from Workers’ Party Member of Parliament for Sengkang GRC Louis Chua.
Nationals and permanent residents of Iceland, Liechtenstein, Norway and Switzerland are accorded similar tax treatment as Singaporeans in the purchase of residential properties in Singapore under the “national treatment” obligation of the Singapore-European Free Trade Association (ESFTA), said Wong.
Likewise, the US-Singapore FTA also requires Singapore to grant similar “national treatment” in respect of stamp duty.
These two agreements were signed almost 20 years ago, before Singapore introduced the ABSD, Wong noted.
“The ‘national treatment’ obligations are part of the balanced package we sought to achieve in the FTAs, to ensure they provide meaningful benefits for Singapore when our companies and people trade with and invest in these countries,” he said.
For example, the “national treatment” benefits apply to Singaporeans when they invest in the US and the ESFTA countries, he added.
Wong also said the number of property transactions and value of ABSD remitted due to the two FTAs vary from year to year due to market conditions and prevailing ABSD rates.
In late April, Singapore raised the ABSD rates for residential properties in a bid to cool the market, with ABSD imposed on foreign buyers doubled to 60 per cent.
https://www.businesstimes.com.sg/singapore/about-250-property-buys-year-foreigners-exempted-absd-under-fta-obligations-dpm-wong