What is the ABSD Trust Remission?

What is the ABSD Trust Remission?

From 9th May 2022, it was announced that ABSD (Additional Buyer Stamp Duty) would be included when purchasing a property under Trust. There isn't a need to pay ABSD at first, so this might seen by many as a reason to stop homebuyers to avoid ABSD by buying under trust.

However, all is not lost and it is not (technically) a bad thing as the government actually provides ABSD remission. Upon successful application, a full or part refund of the ABSD paid (35%), would be refunded.

Below are the conditions for Remission

1) The residential property is held in trust for identifiable individual beneficiaries.

e.g. Your child who would be receiving full beneficiary interest (minor receiving trust is ok as well since legal interest is a separate issue after the age of 21). The child must also be born on the date of declaration.

2) The ABSD (Trust) of 35% has been paid first

3) Application is made within 6 months from the date of exercise.
To apply, you can apply on remission via the e-Stamping Portal.

Click in the following order: “Requests” > “Apply for Assessment / Appeal / Remission” > select “E-Remission” > “Additional Buyer’s Stamp Duty (ABSD)” > “Remission – ABSD (Trust)”.

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