Is Additional Buyer’s Stamp Duty (ABSD) applicable for the residential unit above the HDB shophouse if the company owner already owns a residential house?
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If a local company purchases a residential unit above a shop, even if the company owner already owns a residential property, the acquisition by the company is considered a new residential property purchase by an entity. As such, Additional Buyer’s Stamp Duty (ABSD) will apply to the residential component.
The ABSD rate for entities in Singapore is 65% of the higher of the purchase price or market value of the residential property, regardless of whether the company owner personally owns residential properties. The ABSD liability is based on the buyer’s profile—in this case, the company, not the individual.
In summary: - If a company buys a residential unit (even if part of a shophouse), ABSD of 65% applies. - The company owner’s personal residential holdings do not affect the ABSD that the company pays.
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