Financial Quotient

What is stamp duty?

An indirect tax, stamp duty imposes tax primarily on documents relating to the transfer of immovable properties and unlisted shares in Singapore. It is a tax burden ordinarily borne by the buyer and computed based on certain prescribed rates applied to the consideration or market value of the relevant asset, whichever is higher.

For shares, the stamp duty normally payable is calculated based on 0.2 per cent of the purchase price or the net asset value of the shares, whichever is higher. There is no stamp duty on the issuance of new shares as well as the purchase of shares listed on the Singapore Stock Exchange.

Please or to continue reading the full article. Learn more about ST PREMIUM.

Enjoy unlimited access to ST's best work

  • Exclusive stories and features on multiple devices
  • In-depth analyses and opinion pieces
  • ePaper and award-winning multimedia content
A version of this article appeared in the print edition of The Sunday Times on May 05, 2019, with the headline 'What is stamp duty?'. Print Edition | Subscribe