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Over five years, from 2018 to 2022, an average of around 250 transactions per year were granted Additional Buyer's Stamp Duty (ABSD) remission due to the Singapore-European Free Trade Association Free Trade Agreement (ESFTA) and the U.S.-Singapore Free Trade Agreement (FTA).

According to Deputy Prime Minister Lawrence Wong, the amount of ABSD remitted from these transactions was about S$150 million annually.

Wong, who is also Finance Minister, was responding in a written reply to Workers' Party Member of Parliament Louis Chua's question on Jul. 3, 2023, about the rationale for exempting only nationals or permanent residents of selected European countries under the ESFTA from the ABSD.

Chua also asked about the number of transactions and the value of ABSD exempted per year under all free trade agreements over the past five years.

Exempted property transactions accounted for about 2.5 per cent of all transactions

Wong replied that the number of property transactions and value of ABSD remitted due to the two free trade agreements vary yearly due to market conditions and prevailing ABSD rates.

He added that these transactions accounted for about 2.5 per cent of all property transactions that attracted ABSD from 2018 to 2022.

In addition, the amount of ABSD remitted from these transactions was about S$150 million per year.

Both FTAs were signed nearly 20 years ago, before introduction of ABSD

As for the rationale behind the exemptions, Wong added that both FTAs were signed almost 20 years ago, before the introduction of the ABSD.

Under the “national treatment” obligation of the ESFTA, nationals and permanent residents of Iceland, Liechtenstein, Norway, and Switzerland are accorded similar tax treatment as Singaporeans in the purchase of residential properties in Singapore.

The U.S.-Singapore FTA also contains this "national treatment" obligation for foreign nationals who fall under this agreement.

According to Wong, the "national treatment" obligations are part of the "balanced package" the government sought to achieve in the FTAs, to ensure they provide meaningful benefits for Singapore when local companies and people trade with and invest in these countries.

Wong added that the "national treatment" benefits also apply to Singaporeans investing in the U.S. and the ESFTA countries.

Top photo by Milin John via Unsplash