The Third Schedule of the Stamp Duties Act in Singapore defines stamp duty as a tax levied on immovable properties (i.e., real estates), stocks (shares tradable on the SGX) and shares in private companies in Singapore.
a. A transfer of share document is signed for the transfer or acquisition of shares.
The buyer or transferee is required to pay stamp duty of 0.2% on the purchase price or net asset value (NAV) of the shares (whichever is higher).
No stamp duty is payable for the transfer of scriptless shares as there is no transfer document executed.
b. A mortgage for share document is signed when you transfer your shares to the bank to obtain a loan.
The mortgagor is required to pay stamp duty on the loan amount. The stamp duty payable is at 0.4% of the loan amount and subject to a maximum amount of SGD 500.
Before you sign any of the above two (2) documents, you are required to stamp the document.
However, there is no penalty if the signed document is stamped:
– within 14 days after the document is signed in Singapore or
– within 30 days after receipt of the signed document in Singapore (i.e. the document is signed overseas).
Stamping service is available at the e-Stamping website, SingPost Service Bureaus (at Novena, Raffles Place, Robinson Road and Chinatown) or at e-Terminals located at IRAS Building Level 1.
The Stamp Certificate contains a document reference number, stamp certificate reference number, description, address of the property (if applicable), stamp duty amount paid and names of the parties to the document.
You can also perform an online check at the e-Stamping website.
It is an offence and a penalty of up to 4 times may be levied on incomplete stamped, stamped late or unstamped documents.
Should you have any questions, simply send us a business enquiry, and our Tax Service team will contact you.