Stamp Duties (Conveyance Directions) (Remission) Rules 2015

Statute Details

• Title: Stamp Duties (Conveyance Directions) (Remission) Rules 2015
• Act Code: SDA1929-S778-2015
• Legislation Type: Subsidiary Legislation (SL)
• Authorising Act: Stamp Duties Act (Cap. 312)
• Enacting Power: Section 74 of the Stamp Duties Act
• Commencement: 21 December 2015
• Current Status: Current version as at 27 Mar 2026 (per provided extract)
• Key Provisions (as reflected in extract):
  • Rule 1: Citation and commencement
  • Rule 2: Definitions (including “ABSD”, “company”, and interpretive provisions)
  • Rule 3: Remission applies only to the portion of duty not already remitted under other rules
  • Rule 4: Remission where conveyance direction is in favour of a company (ABSD remission framework)
  • Rule 5: Remission where conveyance direction is in favour of relatives (framework begins in extract)
  • Rule 6: Revocation
• Relevant Stamp Duties Provisions Cross-Referenced: Sections 22(4) and 22A of the Stamp Duties Act

What Is This Legislation About?

The Stamp Duties (Conveyance Directions) (Remission) Rules 2015 (“Conveyance Directions (Remission) Rules”) set out when certain stamp duty—particularly additional buyer’s stamp duty (“ABSD”)—may be remitted in Singapore when a buyer uses a “conveyance direction”. In practical terms, the rules address a common transaction pattern: a party enters into a contract to buy immovable property, then—before the buyer obtains the conveyance—directs the vendor to transfer the property to another party (the “ultimate purchaser”).

Under the Stamp Duties Act, stamp duty can be chargeable on instruments and, in certain circumstances, on conveyance directions. The remission rules exist to prevent ABSD from becoming an unintended penalty where the ultimate purchaser is, in substance, within a permitted relationship or structure, and where the transaction is carried out within defined timeframes and conditions. The rules are not a general waiver; they are tightly bounded by eligibility criteria and limits.

Although the extract provided focuses on Rules 3 to 5, the overall architecture is clear: Rule 3 prevents “double counting” by ensuring remission under these rules applies only to duty that has not already been remitted under other rules made under section 74 of the Stamp Duties Act. Rules 4 and 5 then create separate remission pathways depending on whether the conveyance direction is in favour of a company (Rule 4) or in favour of relatives (Rule 5).

What Are the Key Provisions?

Rule 1 (Citation and commencement) confirms that the rules may be cited as the Stamp Duties (Conveyance Directions) (Remission) Rules 2015 and that they came into operation on 21 December 2015. For practitioners, this matters when assessing whether a remission claim can be made for a conveyance direction executed after commencement.

Rule 2 (Definitions and interpretive rules) defines key terms. Two definitions are particularly important for ABSD analysis:

• “ABSD” is defined by reference to the duty described in the First Schedule to the Stamp Duties Act (as updated by subsequent amendments referenced in the extract).
• “company” has the meaning in the Companies Act (Cap. 50).

Rule 2 also clarifies how to interpret “unremitted ABSD” in the context of remission. This is a technical but crucial point: the rules distinguish between ABSD that remains chargeable after applying other remission rules, and ABSD that would have been chargeable in specified circumstances after deducting amounts that would have been remitted under other rules. This interpretive approach supports Rule 3’s “no double remission” principle.

Rule 3 (Remission only of duty not remitted by operation of other Rules) is the gatekeeper provision. It provides that where duty chargeable under section 22(4) or 22A of the Stamp Duties Act on a conveyance direction may be remitted under these rules and also under other section 74 rules, these rules apply only to the portion of duty that remains unremitted under those other rules (“unremitted duty”).

In practice, this means a lawyer must map the remission landscape across multiple rule sets. A claim under the Conveyance Directions (Remission) Rules cannot be made in isolation; the amount remittable is limited to the residual duty after other applicable remissions have been applied.

Rule 4 (Remission where conveyance direction is in favour of a company) is the most detailed part of the extract and provides a structured ABSD remission regime. The remission is available where all of the following core conditions are satisfied:

• Contractual setup: A vendor enters into a contract to transfer immovable property to an initial purchaser.
• Conveyance direction: Before the initial purchaser obtains the conveyance, the initial purchaser directs the vendor (by written direction) to convey/transfer the property to a company that is or will be incorporated by the initial purchaser (the “ultimate purchaser”).
• Commissioner’s satisfaction: The Commissioner must be satisfied of multiple factual matters, including:
  • the initial purchaser intended the property to be transferred to the ultimate purchaser;
  • no consideration is paid or agreed between the initial purchaser and the ultimate purchaser for that property;
  • duty was duly paid upon the contract;
  • the conveyance direction is made not more than 2 months after the date of the contract;
  • the initial purchaser has and retains a controlling interest in the ultimate purchaser for the entire “relevant period” (as defined in Rule 4(5)).

Limits and exclusions further constrain the remission:

• Rule 4(2): The amount of ABSD remitted cannot exceed the amount of any unremitted ABSD chargeable on the contract and paid. This is a hard cap tied to the ABSD already paid on the contract instrument.
• Rule 4(3): No ABSD may be remitted if the purpose (or one of the purposes) for which the ultimate purchaser is or is to be incorporated is a housing development on the immovable property by the ultimate purchaser.
• Rule 4(4): The housing-development exclusion is “without prejudice” to other specific remission rules for housing developers and non-licensed housing developers (referenced in the extract). This indicates legislative intent: developers may seek remission under dedicated developer-focused rules rather than under the general company conveyance direction remission.

“Relevant period” and controlling interest are central to compliance. Rule 4(5) provides two different time calculations depending on whether there is an incomplete development at the contract date or whether the ultimate purchaser will commence development later. The relevant period ends either at the issue of Temporary Occupation Permits (or the last such permit) or, in other cases, at the date of transfer to the ultimate purchaser because of the conveyance direction.

Rule 4(6) defines:

• “controlling interest” as beneficial interest in more than 50% of shares and holding more than 50% of votes attached to voting shares.
• “development” broadly, including construction operations and housing development.
• “housing development” as construction of housing accommodation and sale of appurtenant land.
• “Temporary Occupation Permit” to include the Certificate of Statutory Completion only if no Temporary Occupation Permit is issued under the Building Control Act (Cap. 29).

Rule 5 (Remission where conveyance direction is in favour of relatives) begins in the extract but is truncated before the full text is shown. However, the opening structure is clear: it mirrors Rule 4’s logic by requiring (i) a contract between vendor and initial purchaser, (ii) a written conveyance direction before the initial purchaser obtains the conveyance, and (iii) the direction being to convey/transfer to a person who is not a party to the contract (the ultimate purchaser) or to convey/transfer to the initial purchaser in shares other than as specified in the contract. The “relatives” concept typically implies that the ultimate purchaser must fall within a defined family relationship category, and the remission is likely conditioned on maintaining the initial purchaser’s beneficial position or other safeguards to prevent abuse.

For practitioners, the key takeaway is that Rule 5 is a separate remission pathway from Rule 4. It is not enough that the conveyance direction is made within time; the ultimate purchaser’s relationship to the initial purchaser and the transaction mechanics must satisfy the rule’s requirements. Because the extract truncates the remainder of Rule 5, counsel should consult the full text (including definitions and conditions) when advising on eligibility and documentation.

How Is This Legislation Structured?

The rules are structured as a short, self-contained remission instrument under the Stamp Duties Act. The extract shows a six-rule format:

• Rule 1: Citation and commencement.
• Rule 2: Definitions and interpretive guidance (including ABSD and controlling interest concepts).
• Rule 3: A general limitation preventing remission from overlapping with other remission rules under section 74.
• Rule 4: Detailed remission conditions for conveyance directions in favour of a company, including time limits, Commissioner satisfaction criteria, controlling interest, and housing-development exclusions.
• Rule 5: Remission conditions for conveyance directions in favour of relatives (framework begins in extract; full conditions require review of the complete text).
• Rule 6: Revocation (typically revoking earlier remission rules or inconsistent provisions, though the exact scope should be confirmed in the full document).

Who Does This Legislation Apply To?

The rules apply to parties involved in transactions concerning immovable property where a conveyance direction is used before the initial purchaser obtains the conveyance. The remission is relevant to the initial purchaser (who issues the direction), the vendor (who receives the direction), and the ultimate purchaser (company or relative) to whom the property is ultimately transferred.

Eligibility is fact-specific and depends on the Commissioner’s satisfaction of conditions, including intent, absence of consideration between initial and ultimate purchasers (in the company pathway), timing (not more than two months after the contract date for Rule 4), and ongoing ownership/control during the relevant period. For relatives (Rule 5), the scope will depend on the statutory definition of “relatives” and any additional conditions set out in the full rule text.

Why Is This Legislation Important?

For practitioners, these rules are important because ABSD can materially affect transaction economics. Conveyance directions are often used for structuring reasons—such as incorporating a vehicle company, reorganising ownership, or accommodating family arrangements. Without remission, the stamp duty consequences of a conveyance direction could undermine legitimate commercial structuring.

At the same time, the rules reflect strong anti-abuse policy. The Commissioner satisfaction requirements, the “no consideration” condition between initial and ultimate purchasers (Rule 4), the strict two-month timing requirement, and the controlling-interest retention requirement all aim to ensure that the conveyance direction is not a device to circumvent ABSD. The housing-development exclusion further channels developer-related cases into specialised remission regimes.

Finally, Rule 3’s “unremitted duty” limitation means counsel must perform a careful duty-by-duty analysis across multiple remission rules made under section 74 of the Stamp Duties Act. In practice, this requires checking whether other remission rules apply to the same instrument(s) and calculating the residual ABSD eligible for remission under these conveyance direction rules.

Related Legislation

• Stamp Duties Act (Cap. 312) (including sections 22(4), 22A, and section 74)
• Companies Act (Cap. 50) (definition of “company”)
• Building Control Act (Cap. 29) (relevance to Temporary Occupation Permit / Certificate of Statutory Completion)
• Stamp Duties (Housing Developers) (Remission of ABSD) Rules 2013
• Stamp Duties (Non-Licensed Housing Developers) (Remission of ABSD) Rules 2015

Source Documents

• Official Text — Singapore Statutes Online
• Archived Copy — Litt Law CDN

This article provides an overview of the Stamp Duties (Conveyance Directions) (Remission) Rules 2015 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.