By Romesh NavaratnarajahThe Inland Revenue Authority of Singapore (IRAS) has released further clarification on the properties affected by the additional buyer's stamp duty (ABSD) in the Fourth Edition of the IRAS e-Tax Guide.With only residential properties and lands included, IRAS defined residential property as an "immovable property (or part thereof) which, under the Master Plan, may be used for solely residential purposes or for mixed purposes, one of which is residential."For existing buildings as well as buildings under construction, ABSD will be payable when it is approved for residential use at the time of the purchase."Approved use excludes Temporary Permission granted by the Competent Authorities for change of use," it added."However, if the property purchased is the entire non-residential development on land which permits residential development, its liability for ABSD will be determined in the same manner as vacant land." Nonetheless, remission could be considered on "a case-by-case basis where it is equitable."As for vacant land, the ABSD will be payable only on the residential components, if the site is zoned as 'Residential', or 'Residential with Commercial at First Storey', or 'Commercial & Residential', or 'Residential/Institution' or 'White'; under the Master Plan. Related Stories:No way HDB will shrink flat sizes: KhawReal estate to play key role in ASEAN's developmentFlat buyers now have better chance, says Khaw
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