SINGAPORE (Feb 19): In the latest Budget 2018, Finance Minister Heng Swee Keat said that the government will be raising the top marginal buyer's stamp duty (BSD) rates for residential properties to 4% from 3%, and applied on the value of residential property in excess of $1 million.

The increased top marginal rate will apply to a portion of residential property value which is more than $1 million.

The changes will be applied to all residential properties acquired from tomorrow (Feb 20) onwards.

There will be a transitional provision for cases where an Option To Purchase (OTP) will be granted to potential buyers on or before Feb 19. 

For such cases, the current BSD rates will apply, instead of the revised ones, if the OTP is exercised within three weeks from today or the OTP validity period, whichever is earlier. 

Heng said the move will make Singapore’s tax system more progressive.