- All beneficial owners of the residential property are identifiable individuals;
- Beneficial ownership of the residential property has vested in all of these beneficial owners at the time of property transfer into the trust; and
The Ministry of Finance announce almost at midnight a 35% Additional Buyer’s Stamp Duty (ABSD) will now apply for any transfer of residential property into a living trust from 9th May 2022 onwards.
This change primarily affects those living trusts set up with no identifiable beneficial owner at the time of transfer into a trust. Previously, the Buyer’s Stamp Duty was payable for the transfer but depending on the profile of the beneficiary, ABSD may also be payable.
The change means that if a trust has no identifiable beneficial owner at the time of the transfer of the residential property, the trustee will have to pay the ABSD called ABSD (Trust).
The trustee is able to apply to the IRAS for a refund of ABSD (Trust) if the following conditions are met: