How much ABSD does a trust pay?
Sixty-five per cent. Where residential property is transferred into a trust, ABSD (Trust) is charged at 65% of the purchase price or market value, whichever is higher — the same rate as an entity, and above the 60% an individual foreigner pays.
On a S$1,500,000 property that is S$975,000, payable at stamping, plus S$44,600 in Buyer's Stamp Duty. The duty is paid first and reclaimed afterwards; there is no upfront remission.
The 65% applies whether the trust is for a minor child, an adult, or anyone else. The beneficiary's own profile only matters at the remission stage.
How does the ABSD (Trust) remission work?
The remission refunds the difference between the 65% paid and the ABSD that would have been payable based on the highest profile among the beneficial owners. It does not remove the duty — it brings it down to what the beneficiary would have paid buying in their own name.
A parent buying on trust for a minor Singapore Citizen child with no other property pays 65%, reclaims all of it, and nets nothing. A parent buying on trust for a spouse who already owns one home nets the 20% second-property rate.
| Beneficiary profile | Paid upfront | Their own rate | Refund | Net ABSD |
|---|---|---|---|---|
| SC child, no other property | S$975,000 | None | S$975,000 | S$0 |
| SC spouse, owns one home | S$975,000 | 20% | S$675,000 | S$300,000 |
| SPR child, no other property | S$975,000 | 5% | S$900,000 | S$75,000 |
| Foreigner beneficiary | S$975,000 | 60% | S$75,000 | S$900,000 |
What makes a trust fail the remission test?
The property must be held on trust for identifiable individual beneficiaries only, and the beneficial interest must be vested and unconditional. This is where most trusts fall over, and it is the single most useful thing to know before drafting one.
IRAS gives worked examples in its own guidance and rejects both of these:
- A trust where one child's 50% share vests only if he graduates from university — a contingent interest.
- A trust where a minor's interest vests only at the age of 21 — a deferred interest.
- Trusts with provisions allowing the beneficial ownership to be revoked or amended, or subjecting it to conditions.
Where the interest is contingent or deferred, the 65% stands with no remission. The trust instrument has to be drafted for this outcome from the start — it cannot be fixed afterwards.
How do I apply for the trust remission?
Through the IRAS myTax Portal, and only after the document has been stamped and the 65% paid. Select Request, then Apply for Assessment or Appeal for Waiver, then "Assessment (including remission and penalty)". The service is desktop only.
Attach a copy of the trust instrument and the Option to Purchase or Sale and Purchase Agreement. The refund is made to the party liable for the stamp duty.
The deadline is six months after the date the instrument was executed. Miss it and the 65% is final regardless of how the trust is written.
What is decoupling?
Decoupling is the transfer of one co-owner's share in a property to the other, so that the transferring party no longer holds an interest in it. In a married couple that usually means one spouse transferring their share to the other, leaving them free of any Singapore residential property.
It is a real transaction with real costs. Buyer's Stamp Duty is payable on the share transferred, legal fees apply, and if there is an outstanding mortgage the remaining owner has to qualify for the whole loan on their own income and TDSR. Where the property is an HDB flat, decoupling is generally not permitted except in specific circumstances.
Decoupling done for genuine reasons, with the duty on the transferred share properly paid, is an ordinary property transaction. What follows is where the line sits.
What is the "99-to-1" arrangement, and why does IRAS audit it?
IRAS describes the pattern as a two-step arrangement: a buyer with no property count purchases in their own name, then within a very short period sells a small share — typically 1% — to someone with a higher ABSD profile. Structured that way, ABSD falls due only on the 1% share instead of on the full value that a joint purchase at the outset would have attracted.
IRAS treats such arrangements as entered into for the purpose of reducing or avoiding stamp duty. Where they determine that tax avoidance has occurred, they recover the rightful amount of stamp duty and may impose a surcharge of 50% of the additional duty payable.
Two further points matter. There is no statutory time limit on stamp duty audits, so an arrangement from years ago remains open to challenge. And enforcement has moved beyond assessment: in February 2025 a mother and son became the first people convicted of giving false and misleading information to IRAS during a stamp duty audit.
This page sets out what the arrangement is because people search for it. It is not a planning route, and nothing here should be read as suggesting otherwise.
Who should I actually be asking?
A conveyancing lawyer, before anything is signed. Trust drafting, decoupling and the ABSD consequences of either are legal work with a tax outcome attached, and the outcome is fixed by documents that cannot be rewritten after execution.
We are a calculator and a guide. We can tell you what the rates are and what IRAS has published; we cannot tell you how to structure a purchase, and any page that offers to is offering something it is not qualified to give.
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Stamp Duty Calculator Singapore
Work out the upfront duty on a purchase — including the 65% trustee rate before any remission.
Open the calculator →Frequently asked questions
How much ABSD is payable on a property held on trust?
65% of the purchase price or market value, whichever is higher, payable upfront at stamping. On a S$1,500,000 property that is S$975,000. A remission can bring it down to the beneficiary's own rate, but the duty must be paid first.
Can I buy a property in trust for my child to avoid ABSD?
A trust for a Singapore Citizen child with no other property can end up at zero net ABSD, but only after paying 65% upfront and successfully claiming the remission within six months. The trust must give the child a vested, unconditional beneficial interest — IRAS rejects interests that are contingent or that vest at a future age.
What is an ABSD living trust?
A trust created during the settlor's lifetime holding residential property for a beneficiary, as opposed to one created by a will. It attracts ABSD (Trust) at 65% on execution, with the remission available where the beneficial interest is vested and identifiable.
Does a trust created by a will attract 65% ABSD?
IRAS addresses this question directly in its guidance on ABSD (Trust), so check their published answer for your circumstances. The 65% regime is built around instruments executed to hold property on trust; testamentary arrangements are treated separately.
How long do I have to apply for the trust remission?
Six months after the date of execution of the instrument. This is a hard deadline. After it, the 65% stands regardless of how the trust is drafted.
What is decoupling in Singapore property?
Transferring one co-owner's share of a property to the other, so the transferring party no longer holds an interest in it. Buyer's Stamp Duty is payable on the share transferred, legal fees apply, and the remaining owner must be able to service the whole mortgage alone.
Can you decouple an HDB flat?
Generally not. HDB restricts transfers of ownership between owners to specific circumstances, and decoupling to free up a name for a private purchase is not ordinarily among them. Private property is where decoupling is done.
Is the 99-to-1 arrangement legal?
IRAS audits these arrangements as two-step structures entered into to reduce or avoid stamp duty. Where tax avoidance is determined, IRAS recovers the correct duty and may add a surcharge of 50% of the additional duty payable. There is no time limit on such audits, and giving false information during one has led to criminal conviction.
Can IRAS look at an old property purchase?
Yes. There is no statutory time limit for stamp duty audits, so an arrangement entered into years ago can still be examined and assessed.
Does decoupling reset my ABSD property count?
Transferring away your entire interest in a property means you no longer hold it, which affects the count on a subsequent purchase. Whether a particular transfer achieves that, and whether the surrounding arrangement would be treated as avoidance, is a question for a conveyancing lawyer on the specific facts.
Sources
Every rate on this page was read directly from IRAS on . Stamp duty rules change with little notice — confirm against IRAS before you commit to a purchase.
- ↗ IRAS — Remission of ABSD (Trust)
- ↗ IRAS — Mother and son convicted of giving false information during a stamp duty audit (Feb 2025)
- ↗ IRAS — Mother and son to be charged following a "99-to-1" audit (Sep 2024)
- ↗ IRAS — Additional Buyer's Stamp Duty (ABSD)
- ↗ IRAS — Common stamp duty remissions and reliefs for property
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