Iras warns of scam e-mails seeking payment for ABSD from tenants

This article is more than 12 months old

Jun 28, 2023 11:15 am

The Inland Revenue Authority of Singapore (Iras) has warned of fraudulent e-mails purportedly from the Monetary Authority of Singapore that seek payment for additional buyer’s stamp duty (ABSD) from tenants.

The e-mail, which has a fake certificate of stamp duty attached, claims that the recipient’s endorsement has to be “validated” as payment for ABSD is outstanding, Iras said in an advisory on its website on Tuesday.

The fake certificate states that the tenant owes $4,536 in stamp duty based on a rate of 4 per cent of a 36-month tenure. It claims that the ABSD will be refunded when the tenant’s lease expires.

It also includes a website address for the tenant to check whether the stamp certificate is genuine. As at Wednesday, the website could not be accessed.

Iras said that ABSD is not payable for tenancy agreements.

The tax authority advised the public to ignore the e-mail and not provide any personal, credit card or bank account details, make payments or follow any instructions in the e-mail. It also urged the public to verify the authenticity of stamp certificates on the Iras website.

At least 443 of such cases have been reported since Aug 28, said the police on Nov 11.

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Those who have fallen for the scam are advised to make a police report.

Iras said that liable buyers of residential properties are required to pay ABSD on top of the buyer’s stamp duty. In April, the Government raised ABSD rates in a move to cool the property market.

Singapore citizens buying their second residential property are subject to a rate of 20 per cent of the purchase price, and 30 per cent of the purchase price for those buying their third or subsequent property. First-time buyers do not pay ABSD.

For Singapore permanent residents buying their first residential property, the ABSD is 5 per cent. It is 30 per cent for their second property and 35 per cent for their third or subsequent property.

Foreigners are required to pay 60 per cent ABSD on any residential property.