What does ABSD mean in SLANG
ABSD stands for Additional Buyer's Stamp Duty, an acronym frequently encountered in the context of real estate transactions. Introduced in Singapore in December 2011, ABSD is an additional tax levied on residential properties. It aims to moderate housing demand, stabilize property prices, and promote a sustainable property market.
ABSD meaning in Slang in Miscellaneous
ABSD mostly used in an acronym Slang in Category Miscellaneous that means Acronym Abbreviation Slang Definitions
Shorthand: ABSD,
Full Form: Acronym Abbreviation Slang Definitions
For more information of "Acronym Abbreviation Slang Definitions", see the section below.
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ABSD: A Breakdown
- Additional: ABSD is an additional tax superimposed on the existing Buyer's Stamp Duty (BSD).
- Buyer's Stamp Duty: BSD is a one-time tax payable upon the purchase of a property in Singapore.
- Stamp Duty: A form of tax charged on legal documents, including property purchase agreements.
Impact of ABSD
ABSD has a significant impact on property transactions, particularly for investors and second-home buyers. By increasing the upfront cost of acquiring a property, ABSD discourages speculative purchases and helps to stabilize property prices.
Application and Calculation
ABSD applies to all residential property purchases in Singapore, including private homes, condominiums, and executive condominiums. The amount of ABSD payable is determined by the property's purchase price and the buyer's profile:
- Singapore Citizens (SCs): 12% for the first residential property, 17% for the second and subsequent properties.
- Singapore Permanent Residents (PRs): 20% for the first residential property, 25% for the second and subsequent properties.
- Foreigners: 20% for all residential property purchases.
Essential Questions and Answers on Acronym Abbreviation Slang Definitions in "MISCELLANEOUS»SLANG"
Who is liable to pay ABSD?
ABSD is payable by individuals and entities purchasing residential or non-residential properties in Singapore, including citizens, permanent residents, and foreigners.
What is the current ABSD rate?
The ABSD rate varies depending on the type of property, citizenship status, and housing loan status. It ranges from 5% to 35%.
How is ABSD calculated?
ABSD is calculated based on the purchase price or market value of the property, whichever is higher.
How do I pay ABSD?
ABSD is usually paid through a bank draft or cheque made payable to the Inland Revenue Authority of Singapore (IRAS) upon property purchase.
Are there any exemptions from ABSD?
Yes, there are certain exemptions from ABSD, such as for first-time homebuyers, purchases of public housing, and inheritance of properties.
What are the consequences of not paying ABSD?
Failure to pay ABSD could result in penalties and late payment interest.
Final Words: ABSD is a crucial component of Singapore's property market regulations. It plays a key role in managing housing demand, stabilizing property prices, and creating a more sustainable real estate market. Understanding the implications of ABSD is essential for prospective property buyers, ensuring informed decision-making and successful transactions.
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