KB Property Talk

99-1 Legal or not? ABSD, Ownership, and Decoupling

13 min · 26. maj 2025
episode 99-1 Legal or not? ABSD, Ownership, and Decoupling cover

Description

Let's discuss about the controversial "99-to-1" arrangement and the legal practice of decoupling, both of which are sometimes used to mitigate the significant cost of Additional Buyer's Stamp Duty (ABSD). While traditional decoupling for legitimate reasons between spouses is generally legal, the "99-to-1" scheme, particularly when immediately followed by a transfer of the smaller share to avoid tax on the whole property, is viewed by the Inland Revenue Authority of Singapore (IRAS) as tax avoidance and is being actively audited and penalized.

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