ABSD (TRUST) OF 35%

Starting 9 May, 2022, Additional Buyer’s Stamp Duty

(ABSD) of 35% will apply on any transfer of residential
property into a living trust.
A living trust is created by an individual during his
lifetime, where a property is transferred to a designated
person (called the trustee), who is given responsibility of
managing that property for the benefit of the eventual
beneficiary.
Please see next slide for illustration.
 The ABSD payable on the living Trust depends
on the profile of the beneficial owner of the
property transferred into the trust.
As at today, the ABSD rate applicable for first
residential property count are as follows:
Singapore citizen : None
Singapore Permanent Resident : 5%
Foreigner : 30%
The ABSD rates on or after 9 May 2022 are summarized in the table below
• Based on new ABSD (Trust) rule, with
effect from 9th May 2022, ABSD of 35% is
payable on ALL residential properties
transferred into the living trusts.

• The new ABSD is to be payable upfront,

when the residential property is transferred
into any living trust.
• As a concession, a trustee may apply to the Inland
Revenue Authority of Singapore (IRAS) for a refund of the
new ABSD, if the following conditions are met:-
• a. all beneficial owners of the residential property are
identifiable individuals;
• b. beneficial ownership of the residential property has
vested in all of these beneficial owners at the time of
property transfer into the trust; and
• c. the beneficial ownership cannot be varied or
revoked (i.e. irrevocable trust), or be subject to any
condition subsequent, under the terms of the trust.
• The amount refunded 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.
• For example, if Lisa (the beneficial owner) is a
Singapore citizen, and does not own any other
residential property, the refund would be 35%
minus 0% = 35%.
• If Lisa is a Singapore Permanent Resident, the
refund would be 35% - 5% = 30%.
• There will be NO refund, if the beneficial owner
is not identifiable individual beneficiary.

• For example, Lucy executed a declaration of

trust of 10th May, 2022 to declare that she is
holding a condominium unit on trust for Lisa. The
trust states that Lisa is entitled to the
condominium unit, if she graduates from
university.
• In this case, Lucy will NOT be eligible for refund of
the 35% ABSD paid on the Living Trust because
Lisa’s interest in the property is contingent of her
graduation from university.
• If Lisa should fail to graduate from university, she
would not be entitled to ownership of the
condominium unit.
• Lisa is, therefore, is not an identifiable individual
beneficiary. It follows, therefore, that there is
no refund of the 35% ABSD paid.
• The application for the refund must be made to
IRAS within six months after the instrument is
executed.

• Trustees or their representatives may apply for

the remission on IRAS' e-Stamping Portal.