Subject to enactment of the new legislation, SSD will be effective from 20 November 2010. Any residential property acquired on or after 20 November 2010, either by an individual or a company (regardless of where it is incorporated), and resold within 24 months will be subject to SSD.

SSD rates
The SSD is calculated based on the stated consideration for the transaction or the market value of the property, whichever is higher, at the following rates for different holding periods by the seller before the transaction:

• 15% if the vendor has held the property for six months or less;
• 10% if the vendor has held the property for more than six months but for 12 months or less;
• 5% if the vendor has held the property for more than 12 months but for 24 months or less.

The SSD is not calculated based on the profits from the property transactions.

Persons liable to pay the SSD
Buyer and seller will be jointly and severally liable for the payment of the SSD

Exemptions
In the following cases, the sale or transfer of property will be exempt from the SSD:

• Nomination of a close relative to take up the assignment of a property under a sale and purchase agreement (“close relative” means parent, spouse or child);
• Sale or transfer of a property to close relatives;
• Sale or transfer of a property due to bankruptcy/company winding up by the Court of First Instance because of inability to pay debts;
• Sale or transfer of a property between associated companies; and
• Sale or transfer of a property to Government.