When people think about stamp duty on Singapore residential property, they picture Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD) paid on a direct purchase. But property is often held inside a company, and shares in that company can change hands instead of the property itself. To stop that structure being used to sidestep the residential-property duties, Singapore imposes Additional Conveyance Duties (ACD) on transfers of equity interests in a Property-Holding Entity (PHE). This 2026 guide explains what ACD is, when it bites, the rates after the 4 July 2025 changes, and what directors and shareholders need to check before transferring shares.
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
It is written for business owners, directors and investors who hold Singapore residential property through a company, partnership or trust, or who are buying or selling shares in such an entity. ACD is one of the most commonly overlooked liabilities in a share transfer, and getting it wrong is expensive.
What are Additional Conveyance Duties?
ACD is a stamp duty that applies to the acquisition or disposal of equity interests, typically shares or units, in an entity that primarily holds Singapore residential property. It sits on top of the ordinary share transfer stamp duty of 0.2%, and it is designed to mirror the BSD and ABSD that would have been payable if the underlying residential property had been bought or sold directly.
In other words, ACD closes a gap. Without it, a buyer could acquire a S$20 million bungalow by buying the shares of the company that owns it and pay only 0.2% share duty, instead of the far heavier BSD and ABSD due on a direct conveyance. ACD makes the two routes broadly equivalent in duty terms.
What is a Property-Holding Entity (PHE)?
ACD only applies to transfers involving a PHE. Broadly, an entity is a PHE if it is a “Type 1” or “Type 2” entity whose Singapore residential properties (and, for Type 2, indirect holdings) make up at least 50% of its total tangible assets. A Type 1 PHE holds the residential property directly; a Type 2 PHE holds it indirectly through one or more subsidiary entities.
The test looks through to the substance. If the value of a company’s Singapore residential property, taken together with certain other prescribed assets, is at least half of its total tangible assets, the company is a PHE and its shares are potentially within the ACD net. Commercial and industrial property is not caught, because ACD only tracks the residential-property duties.
The “significant owner” threshold
ACD does not apply to every small share transfer. It is triggered only where the buyer or seller is, or becomes, a significant owner of the PHE. A person is a significant owner when they (whether alone or with associates) hold 50% or more of the equity interests or voting power in the entity.
So ACD typically bites where a person either already controls the PHE at 50% or more and disposes of interests, or acquires interests that push them to 50% or more. Small minority transfers that neither reach nor come from a significant-owner position generally fall outside ACD, though the ordinary 0.2% share duty still applies. The associate rules are wide, so family members and related companies must be counted together when testing the 50% threshold.
ACD rates after 4 July 2025
ACD has two limbs, mirroring the buyer-side and seller-side residential duties.
ACD (Buyer) — ACDB
On an acquisition of equity interests, the buyer pays ACD (Buyer), which is made up of a BSD-equivalent component plus an ABSD-equivalent component, computed on the value of the underlying Singapore residential property attributable to the interest acquired. Because significant owners of PHEs are usually entities or investors acquiring beyond a first home, the ABSD-equivalent component is charged at the top residential rates. This is what makes acquiring a residential PHE broadly as expensive, in duty terms, as buying the property outright.
ACD (Seller) — ACDS
On a disposal, the seller pays ACD (Seller) if the equity interests are sold within the holding period. Following the changes in the 8th edition of the IRAS e-Tax Guide issued on 4 July 2025, the ACDS rate is a flat 16% where the interests were acquired on or after 4 July 2025 and disposed of within 4 years. For interests acquired between 11 March 2017 and 3 July 2025, the earlier regime of a flat 12% on a disposal within 3 years continues to apply. This tightening mirrors the parallel increase in Seller’s Stamp Duty on direct residential sales.
On top of both limbs, the ordinary 0.2% share transfer duty is still payable on the consideration or net asset value of the shares. ACD is an addition to, not a replacement of, the basic duty.
A worked illustration
Suppose an investor acquires 100% of the shares of a company whose only substantial asset is a Singapore residential property worth S$10 million. The company is plainly a PHE, and the investor becomes a significant owner. ACD (Buyer) is computed on the S$10 million of underlying residential property value, comprising the BSD-equivalent and the ABSD-equivalent at entity rates, plus the 0.2% duty on the share value. Had the same investor sold those shares within four years, ACD (Seller) at 16% would apply on the attributable property value. The numbers are large precisely because ACD is meant to neutralise any duty advantage in using a company wrapper.
How and when ACD is paid
ACD is a stamp duty and is due within 14 days of the date of the instrument (the share transfer) if executed in Singapore, or 30 days if executed overseas. It is stamped and paid through the IRAS e-Stamping portal, in the same way as ordinary share transfer duty. Because ACD depends on a valuation of the underlying residential property and on the 50% significant-owner test, the computation should be worked out before signing, not after. Late stamping attracts penalties.
Reliefs and interaction with group transfers
Certain transfers of PHE equity interests within a wholly-owned or associated group may qualify for stamp duty relief, subject to strict conditions and clawback if the group relationship breaks down within the holding period. Where a transfer is part of a genuine reconstruction or amalgamation, it is worth checking whether relief is available and whether ACD is affected. These reliefs are not automatic and must be applied for with full supporting documents. Because the interaction between ACD, group relief and the residential-property duties is intricate, professional advice is strongly recommended before executing any transfer of a residential PHE.
Frequently asked questions
Does ACD apply to commercial or industrial property held in a company?
No. ACD only tracks the residential-property duties. An entity holding only commercial or industrial property is not a PHE for ACD purposes, though other duties and the ordinary 0.2% share duty may still apply.
What if I only buy a 10% stake?
If neither you nor your associates reach or already hold 50%, ACD (Buyer) generally does not apply to that acquisition. The ordinary 0.2% share duty still applies. But watch the associate rules, which aggregate related holdings.
Is ACD in addition to the 0.2% share transfer duty?
Yes. ACD is charged on top of the basic share transfer stamp duty, not instead of it.
How is the underlying property value determined?
ACD is computed on the market value of the Singapore residential property attributable to the equity interest transferred. A professional valuation is usually needed, and IRAS can substitute its own valuation.
How we can help
ACD is one of the easiest liabilities to miss and one of the most costly to get wrong, because it can turn a routine share transfer into a six- or seven-figure duty event. Raffles Corporate Services helps directors and investors test whether an entity is a PHE, whether the significant-owner threshold is crossed, and how much ACD (Buyer) or ACD (Seller) will fall due, and we handle the e-Stamping and documentation so the transfer is done cleanly and on time. If you are contemplating a transfer of shares in a company that owns Singapore residential property, speak to us first.
This article is for general information only and does not constitute tax or legal advice. Stamp duty rates and ACD rules change; confirm the current position with IRAS or a qualified adviser before acting. Full details are set out by the Inland Revenue Authority of Singapore and in the Stamp Duties Act 1929.
— The Editorial Team, Raffles Corporate Services
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