- 2010-08-30
IRS To Drop UBS Lawsuit - 2010-08-31
Alexander Dashes UK Tax Cut Hopes - 2010-08-30
German Cabinet Adopts Bank Levy - 2010-08-27
White House Defends Tax Policies - 2010-08-30
ASEAN Ministers Review Free Trade Progress - 2010-08-30
France To Emulate German Tax System - 2010-08-27
Calderon Says No Tax Rise For Mexico - 2010-08-31
Islands Seek Leadership For Brussels Office - 2010-09-02
UAE Nears Completion Of New Companies Law - 2010-09-01
Obama Repeats Small Business Tax Breaks Plea - 2010-09-01
Indian Cabinet Approves Lowering Of Direct Taxes - 2010-08-27
UK Businesses Dissatisfied with HMRC - 2010-09-02
EC Consults On Cross-Border IHT Issues - 2010-09-02
Singapore Attempts To Rein In Property Market - 2010-08-30
Thailand Proposes Tax Breaks For Foreign Films - 2010-08-31
Spanish Tax Office VAT Assessments 'Unlawful' - 2010-08-31
South Africa Realigns Vehicle Carbon Emission Taxes - 2010-09-01
Swedish Government Pledges Tax Cuts
Tax News 14 : 2010-09-02
Singapore Attempts To Rein In Property Market
Amidst fears that the property market could be overheating, Singapore’s government has announced immediate measures aimed at maintaining price stability, while also saying that it will continue to monitor the situation closely and will introduce additional measures if required later.
With effect from August 30, the Ministry of Finance has increased the holding period for the imposition of seller’s stamp duty (SSD) from the current one year to three years.
The government originally imposed an SSD for sellers buying residential properties on or after February 20, 2010 and selling them within a year of purchase. However, for residential properties bought on or after August 30, 2010, SSD will be imposed if these properties are sold within three years of purchase.
Specifically, the SSD levied on a residential property will be revised so that, if it is sold within the first year of purchase, the full SSD rate - 1% for the first SGD180,000 (USD132,500) of the consideration, 2% for the next SGD180,000, and 3% for the balance - will be imposed.
If the property is sold within the second year of purchase, two-thirds of the full SSD rate will be charged; and, if it is sold within the third year of purchase, one third of the full SSD rate will be imposed. No SSD will be payable by the vendor if the property is sold more than three years after it was bought.
In addition, for property buyers who already have one or more outstanding housing loans at the time of a new housing purchase, the minimum cash payment has been increased from 5% to 10% of the valuation limit, and the loan-to-value (LTV) limit has been decreased, for housing loans granted by financial institutions to these buyers from the current 80% to 70%.
The Ministry said: “While financial institutions' lending standards have remained prudent and the asset quality of housing loans has stayed robust, there are signs that more housing loans are originating at higher LTV bands of above 70%. In line with the objective of ensuring a stable and sustainable property market, lowering the LTV limit sends a clear signal to financial institutions to maintain credit standards.”