An Additional Buyers' Stamp Duty (ABSD) of 35% will now apply to any transfer of residential property into a living trust, according to a statement posted on the Ministry of Finance's website.
The new rule ("ABSD (Trust)"), will apply to transfers that occur on or after May 9, 2022
A living trust is a trust that is created by a person when he/she is alive
Previously, when a residential property is transferred into a living trust, Buyer's Stamp Duty is payable but whether there will be ABSD depends on who is benefiting from the residential property that is transferred into the living trust. When a living trust is structured such that there is no identifiable beneficial owner(s) at the time when the residential property is transferred, ABSD does not apply
Now, the ABSD (Trust) is payable upfront regardless of whether there's identifiable beneficial owner(s)
A trustee may apply for a refund of ABSD (Trust) if certain conditions are met
For more information, please refer to MOF's statement here
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