Criteria to Grant Deadline Extension for Additional Buyer's Stamp Duty for Cuscaden Reserve and Other Projects
Ministry of FinanceSpeakers
Summary
This question concerns the criteria and frequency of Additional Buyer's Stamp Duty (ABSD) sale deadline extensions granted to residential projects like Cuscaden Reserve. Mr Sitoh Yih Pin asked about the reasons for such extensions and whether other developments received similar treatment outside of COVID-19 relief measures. Deputy Prime Minister and Minister Lawrence Wong stated that extensions are granted case-by-case for extenuating circumstances involving unforeseen site-specific delays beyond a developer’s control. He noted that 44 projects, or 12% of those with deadlines between 2021 and 2023, received such extensions, though specific taxpayer details remain confidential. The Minister emphasized that these remission conditions ensure the timely completion and sale of housing units to encourage prudent land bidding.
Transcript
8 Mr Sitoh Yih Pin asked the Deputy Prime Minister and Minister for Finance (a) whether Cuscaden Reserve is the first residential project in which the developers have been granted an Additional Buyer’s Stamp Duty deadline extension besides extensions that are granted as part of the temporary relief measures due to the COVID-19 pandemic; (b) if so, what are the reasons for granting the extension; (c) if not, what are the other projects which have been granted a similar extension; and (d) what are the criteria which IRAS applies in deciding whether to approve such a request.
Mr Lawrence Wong: Today, housing developers purchasing residential sites can qualify for an upfront remission of Additional Buyer's Stamp Duty (ABSD), if they meet the specified timelines for commencement and completion of the housing development and the sale of units within the residential development. These conditions for ABSD remission for housing developers ensure the timely commencement and completion of development and sale of residential units and encourage housing developers to bid for land prudently.
Requests for extensions to the specified timelines are considered by the Government on a case-by-case basis. I would not comment on individual cases, as the details include confidential taxpayer-specific information.
The vast majority of housing developers have met the sale timeline for ABSD remission, after taking into account the extension provided under the COVID-19 Temporary Relief Measures. A small group of developers have applied for an extension.
Excluding generally available extensions provided under the COVID-19 Temporary Relief Measures, 44 projects or 12% of projects with a sale deadline within 2021 to 2023, received an extension to their specified sale timeline. These appeals were approved as they involved extenuating circumstances, such as the developer facing site-specific delays that were unforeseen and beyond its control.