I want to know how the ABSD remission for developers works.

ABSD remission for developers in Singapore allows a significant portion of the Additional Buyer’s Stamp Duty (ABSD) to be remitted upfront when developers purchase land for residential development, provided certain conditions are met. Developers typically pay 40% ABSD on land acquisition, but 35% may be remitted if they complete and sell all units in the new development within five years from the land acquisition date.

If all units are not sold within this five-year period, the remitted portion must be repaid (clawed back), with the amount depending on the percentage of units sold by the deadline. For example, if only 90% of units are sold within the timeline, 34% ABSD would be clawed back for applicable projects. In addition, interest on the clawed-back amount applies.

Recent policy updates allow certain extensions to this five-year sale deadline for large and complex projects, with approved extensions ranging from six to twelve months.

The remission process requires the developer to provide an undertaking to the authorities and comply strictly with sale, completion, and commencement timelines. If any of these conditions are not met, the developer is liable to pay the remitted ABSD plus interest.