Stamp duty is defined as the tax levied by the government on legal documents. The buyer stamp duty Singapore is one such example. Cheques, marriage licenses, restaurant licenses, property related documents and various other related receipts include such taxes levied or imposed on them. They serve as an important source of income and revenue to the state as well as the country, thereby improving the national economy. In order to denote or signal that the stamp duty has been paid, a paper stamp is physically pasted or stuck on the top page of the document. All the involved organizations check for this stamp before carrying out any process or transaction for it is compulsory to pay the stamp duty.
Important features of stamp duty in Singapore:
The stamp duty policies and rules are quite strict and all the citizens are expected to follow them. The buyer stamp duty Singapore has established differs from other countries in several ways. Some of the important features of the stamp duty in Singapore are given below :
- The stamp duty is imposed only in case of immovable property, stocks and other shares of the citizen
- The stamp duty must be paid within 14 days of signing of the document, if the document is signed in Singapore itself.
- If the document is signed outside Singapore or overseas, then the stamp duty must be paid within 30 days of the signing of the document.
- If the individual fails to pay the stamp duty within the designated time, he or she is subjected to pay a heavy penalty.
- Special laws and legal acts have been established that set the guidelines and for the collection and regularisation of the revenue collected.
- Special agencies and organisations have also been set up to monitor the citizens and ensure that the buyer stamp duty Singapore has set are paid lawfully.
The stamp duty rates differs from place to place and from document to document. Some documents have a higher tax and duty as compared to others, depending mainly on the value and money involved. If the purchase is less than 180000 dollars, a stamp duty of 1 percent is levied. If it is between 180000 and 360000 dollars, a stamp duty of 2 percent is imposed and if the worth goes above 360000 dollars, 3 percent duty rates are applied. If the money involved is more than 1000000 dollars, an extra duty of 4 percent is applied on the sum above 360000 dollars. In some cases, these taxes are applicable for all buyers, irrespective of the nationality. In such cases, the buyer stamp duty serve as important source of income and revenue for the country.
Certain online applications are also available that help calculate the duty rate. The user feeds in his or her location, and the other important details related to the documents. The duty rate calculator then calculates the duty fee and prints it on the screen. However, these are usually approximate values and if not updated, the machine displays values way different from the actual value involved.
The stamp duties levied on different documents is an important way of curbing an enormous and sudden increase in the prices undertaken by the government. An interesting fact about the Buyer stamp duty Singapore government has levied is that it is the same for all the citizens, whether an individual was born in Singapore or become a national citizen in the later years. As such there is no discrimination whatsoever which a wonderful sign of peace and prosperity is. The tax treatment is same for all.
Buyer duty stamp refund is also possible but this too has certain terms and conditions along with it. If the applicant has received a temporary entry permit in the country, for the second property, and the first property is sold within 6 months of the signing of the document, the applicant and demand for a refund in the stamp duty. The authority is inn that case, bound to repay or refund the money. 100 percent refund may not be provided but a decent sum is returned.
Consultancy and other help or related services are available easily on the internet or the World Wide Web. The consultant’s study the clauses, policies and other legal rules thoroughly. They gain the required expertize and then consult or help the applicants in order to prevent them from choosing the wrong path.
Special policies are available for newly married couples, who want to start a family on their own and live a life at their own house or property as well. When the married couple intends on buying their own first flat, or any other administrative apartment, as long as at least one of the two in a couple is a citizen of Singapore, the couple can try for or apply for an exemption from the buyer stamp duty. On the other hand, if one of the two in a couple is a permanent resident of Singapore, the couple can try or apply for a decrease in the buyer stamp duty by around 5 percent.
A special seller’s stamp duty was also introduced by the Singapore government for extra revenue and to keep a stricter check on the price rise and property trade. While the buyer stamp duty Singapore government introduced was paid by the buyer, or the person purchasing the property, the sellers stamp duty is paid by the person selling the property in return for money. The people who purchased a certain property and sold it to somebody else within a particular set time or before the expiration of the holding period are expected to pay this duty.
When foreigners buy property in Singapore, they can buy only the private property owned by other citizens. They cannot buy the property owned by the government, or the government cannot sell any public property to foreigners, no matter how small or large it is. Private housing services are also available for this cause.
Each and every citizen is expected to pay the duty not only in Singapore but other parts of the world as well. Refraining from paying these duty taxes and the penalties that follow the failure of payment of the duty is punishable by law and is a criminal offence. Such citizens are at a greater risk of being raided by the income tax department and other authorized government authorities. The citizens ought to stop thinking about their own selves and their own bank account balance. They have to start thinking about the nation or the country and its economy as well. This is when the number of tax payers and the amount of tax paid will increase and the economy of the country will flourish greatly.