Property tax and dispute resolution

Property tax

In any business, location is important. In land-scarce Singapore, the acquisition of a business property brings along the burden of property tax, which may have considerable impact on your business bottom line.

Understanding how tax on business property is computed can help you plan efficiently and optimally for business expansion.

Stamp duty

In recent years, there has been much development in stamp duties: the introduction of seller’s stamp duty (SSD) in 2010, additional buyer’s stamp duty (ABSD) in 2011, and additional conveyance duty (ACD) in 2017. The highest marginal rate of buyer’s stamp duty (BSD) imposed in relation to residential real estate was also increased in 2018.

Transactions involving the sale of Singapore shares and Singapore immovable properties now attract stamp duty at rates ranging from 0.2% to 34.2%, which could be a deal-breaker if not properly managed.

Tax dispute resolution

Globalisation, volatility in economies, and changes to accounting rules and tax policies increases the tax risk exposure of companies. There is tremendous pressure to maintain or increase tax collections in a declining tax rate environment, while keeping tax administration costs low.

Many tax authorities are cooperating internationally on tax matters, exchanging information, and adopting a risk-based scrutiny approach. They are also strengthening and increasing tax collections, and improving enforcement of processes and procedures. As a result, many companies are dedicating more time and attention to coordinating and managing their tax affairs.

Our team is acutely and intimately familiar with Singapore’s property tax and stamp duty regimes. We also offer a proactive and coordinated approach to tax risk and dispute management.

Led by a tax veteran who holds qualifications in real estate and valuation, the team comprises seasoned tax practitioners, lawyers and accountants, many of whom are familiar with the Singapore tax system having previously worked for the Inland Revenue Authority of Singapore (IRAS).

We advise on all aspects of property tax as well as stamp duty implications. This includes aspects concerning the understanding of the annual value of properties, appropriate methodologies to determine annual value, and items chargeable to property tax and property tax relief.

Drawing on our experience and expertise, we can help design robust tax compliance controls and guide you on the effective management of tax disputes; efficiently employ resources to unlock value tied up in unresolved tax issues; and enable you to better manage your penalty exposure.