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What are the Property Fees and Tax Rates?

Published by Handy Work on

Taxes
Taxes

For property sold to foreign buyers, the Singapore government requires the seller, agent and buyer to pay a considerable amount of fees.

These fees are known as an Additional Buyer’s Stamp Duty (ABSD) or Stamp Duty. This is charged on top of the property price. The stamp duty makes up a big part of the property broker fees in Singapore. In 2018, this amount was increased by 2% in Singapore. Due to this increase, the property broker fees in Singapore increased as well and now stand at around $5,000 – $15,000.

Malaysia

In Malaysia, Real Property Gains Tax (RPGT) is charged on profits from selling properties which are located within Malaysia. If you have any investments that were made before January 1, 2016, RPGT isn’t applicable to you. However, if you have purchased properties after that date and decide to sell them within 5 years of purchase, RPGT may be applicable to you. The RPGT rates are between 1% and 8% for properties held for less than one year whereas for properties held for over one year it stands at 3%-8%.

Indonesia

In Indonesia, the buyer receives a tax deduction of 15% of the property price when it is sold. If the buyer wants to retain the property, he/she can get a 20% tax deduction on the amount. However, this isn’t applicable to land and some properties such as apartments. The seller in Indonesia needs to pay 5% of the property value as a transfer tax and another 3% as stamp duty.

Philippines

In Philippines, there is no capital gains tax if you decide to sell your property within 5 years of purchase. On the other hand, if you decide to sell your property after 5 years have passed since you purchased it, it is considered as capital gains income and is subject to tax. The profit will be calculated by deducting from your original investment price the costs incurred for purchasing and selling the property along with other expenses like repairs and improvements to get an actual value of your property. This value will be taxed at 6%. However, if you hold on to your property for more than 10 years since purchase date then you can get a full exemption from any taxes.

Summary

The property broker fees in Singapore, Malaysia, Indonesia and Philippines are different for a number of reasons. While the Singapore government allows foreign buyers to get exemption from the additional buyer’s stamp duty, Malaysia charges RPGT on profits from selling properties which are located within Malaysia. The Philippines also charges tax on profits from selling property after 5 years of purchase.


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