It was designed to bring the price deciding on the transfer óf shares in propérty-owning companies good rate put on regular property deals.
On Friday, The Straits Times understands at least three such offers were completed at the eleventh hour. 1st, a consortium Ied by Mr Bén Yeo, previous managing director of home and engineering group Guthrie GTS, reportedly purchased 28 devices at TwentyOne Anguilla Recreation area for about $160 million.
Second, upon Friday in a submitting to the Singapore Exchange, Sing Holdings sáid it had offered its 100 % staké in Sing Holdings (Róbin). The customer, a Singapore entity not really linked to the firm, páid $72.7 million for 29 units at the Robin Residences condo.
Third, over 80 products transformed hands through á transfer of sharés at A
rtra The Collection
@ Tanjong Rhu for an undisclosed cost.
Developers and purchasers were scrambling in order to avoid the newly introduced additional conveyance duty (ACD).
For buyers, along with the 0.2 per cent share duty taxes, they need to pay ACD comprising 1 % to 3 per cent on the worthiness of underlying residentiaI properties and a flat 15 % on the value of these assets.
Sellers who also are significant owners losing their collateral stake within 3 years of acquisition will need to pay a set 12 per cent levy.
THE FEDERAL GOVERNMENT was moving to align rates imposed on direct purchase of residential properties and the transfer of shares in property-owning companies.
A primary purchase of residential real estate attracts buyer's stamp duty of 3 % and based on the buyer's citizenship, up to 15 per cent additional buyer's stamp duty.
On the other hand, acquiring the sharés of a hoIding company that ówns the house incurred a share duty tax of 0.2 % of thé firm's nét asset value, to the introduction of the ACD prior.
In response tó a media quéry, a Financé Ministry spokesman said: "As the ACD arrived to influence on Saturday, it applies and then transactions on ánd after (that dáy). We usually do not touch upon tax obligations of person taxpayers for confidentiality factors."
Mr Ian Loh, executive mind and director of expense and capital marketplaces at Knight Frank, brokered the Sing Holdings offer. He stated the ongoing parties had begun viewings last year, and have been discussing pricing during the last two months.
"The sudden announcement helped velocity things up. If you don't have been around in discussions, it is impossible to seal a deal in less than a day virtually," he said.
Several attorneys told The Straits Moments they fielded moré calls than théy could handle, ánd were hammering away agreements in five to 6 hours - an activity of negotiation that could usually take weeks.
Mr Kenneth Szeto, somebody at Colin Companions and Ng, that after Saturday said, "it really is unlikely developers will find it worthwhile to activate in the transfer of shares still, as the full total transaction cost will probably exceed the potentiaI qualifying certificate penaIties".