asia房地產

Estate tax on the deemed value of an estate at death has been removed for deaths after 15 February 2008. For deaths prior to this date, estate tax was payable on the principal value of all property that passed or was deemed to pass to the beneficiaries, subject to exemptions of S$9 million for residential properties and S$600,000 for nonresidential assets.

1.1 Inheritance tax — stamp duty

As of 19 February 2011, fixed duty for most instruments upon the distribution of property to a beneficiary of a deceased’s estate has been abolished. However, if the document was executed before 19 February 2011, a nominal fixed duty remains payable.The fixed duty is payable if the properties are distributed in accordance with the individual’s will or the Intestate Succession Act or the Muslim Law of Inheritance; in these cases only a fixed stamp duty of S$10 applies,

If the distributions are not in accordance with the above, then the documents are regarded as a transfer by way of gift (see Section 1.2). In such cases, full duty will be charged on the excess entitlement acquired by the beneficiary.

For example, under the Intestate Succession Act, if a widower died without leaving a will and was survived by 4 children, these children would be entitled to equal shares of the estate. If the distribution was made in line with this, then there would either be no fixed duty payable (post-19 February 2011) or S$10 (pre-19 February 2011). However, if the whole property is transferred to only 1 child, then the excess transfer (75%) will be subject to full duty.

Documents are required to be stamped within:

• 14 days from the date of execution provided the document was signed in Singapore.
• 30 days of its receipt in Singapore provided the document was signed overseas.

A penalty of up to 4 times may be imposed if the documents are stamped late or insufficiently.

1.2 Gift tax — stamp duty

For any conveyance or transfer operating as gifts, the documents shall be chargeable with stamp duty as if it were a conveyance or transfer on sale. In such instances, for transfers involving immovable properties, the stamp duty will be computed based on the market value of the immovable properties. For transfers involving shares, stamp duty will be computed on the net asset values of the shares transferred.

The full duty rates are as follows:

• S$1 for every S$100 or part thereof for the first S$180,000.
• S$2 for every S$100 or part thereof for the next S$180,000.
• S$3 for every S$100 or part thereof of the remainder.

The stamp duty rate for the transfer of shares is 0.2% on the purchase price or net asset value, whichever is higher.

A document can be presented for stamping at any time before signing of the document. However, once a chargeable document is signed, duty must be paid within:

• 14 days from the date of signing of the document (which is the date of the document).
• 30 days from the date of receipt in Singapore if the document is signed overseas.

A penalty of up to 4 times may be imposed if the documents are stamped late or insufficiently.

If full duty is payable (i.e., transfer by way of gift), then the submission for stamping should be as follows:

• Documents executed (signed) before 1 January 2009
  • The document must be submitted to the Commissioner of Stamp Duties for adjudication. Adjudication and valuation fees will be charged accordingly. Neither taxpayers nor agents are permitted to e-stamp such documents.
• Documents executed (signed) on or after 1 January 2009
  • If a document is signed relating to a transfer of property by way of a gift on or after 1 January 2009, then it is not required to submit such documents for adjudication. Instead the individual may e-stamp the document based on the market value of the property at the date of execution or signing of the document. An individual can stamp the document via the e-stamping system using the transfer of immovable property, land, stocks and shares by way of a gift module.

1.3 Real estate transfer tax

For residential properties acquired on or after 20 February 2010, there may be the Seller’s Stamp Duty (SSD) payable upon the sale of a property that was transferred to a beneficiary at death. SSD is also due for any other form of sale or transfer of residential property outside of that transferred via inheritance.

For residential property transferred because of inheritance or right of survivorship in joint tenancy, the SSD will be payable if the property is disposed of within a year of the property being acquired by the deceased (if acquired by the deceased after 20 February 2010), within 3 years if acquired on or after 30 August 2010 or within 4 years if acquired on or after 14 January 2011.

The rate of the SSD in this scenario is applied to the market value of the residential property, as follows:

Between 20 February 2010 and 29 August 2010 (inclusive)

• Within 1 year:
  • 1% on the first S$180,000.
  • 2% on the next S$180,000.
  • 3% on the remainder.
• More than 1 year:
  • No SSD payable

Between 30 August 2010 and 13 January 2011 (inclusive)

• Within 1 year:
  • 1% on the first S$180,000.
  • 2% on the next S$180,000.
  • 3% on the remainder.
• More than 1 year and up to 2 years:
  • 0.67% on the first S$180,000.
  • 1.33% on the next S$180,000.
  • 2% on the remainder
• More than 2 years and up to 3 years:
  • 0.33% on the first S$180,000.
  • 0.67% on the next S$180,000.
  • 1% on the remainder.
• More than 3 years:
  • No SSD payable

On or after 14 January 2011

• Within 1 year:
  • 16%
• More than 1 year and up to 2 years:
  • 12%
• More than 2 years and up to 3 years:
  • 8%
• More than 3 years and up to 4 years:
  • 4%
• More than 4 years:
  • No SSD payable

On 11 January 2013, the Government announced that SSD will be imposed on industrial properties, which are bought or acquired on and after 12 January 2013 and sold or disposed of within 3 years. The SSD rates in these cases are as follows:

• Within 1 year:
  • 15% of the market value or price (whichever is higher)
• Within 2 years:
  • 10% of the market value or price (whichever is higher)
• Within 3 years:
  • 5% of the market value or price (whichever is higher)

For industrial properties acquired prior to 12 January 2013 no SSD will be levied.

There are various exemptions/reliefs that may be available in certain scenarios.

The SSD is generally payable within 14 days of signing the sales agreement or when it is executed overseas, SSD must be paid within 30 days of the receipt of the Contract or Agreement in Singapore.

Penalties of up to 400% may be imposed if under-reporting is discovered.

1.4 Endowment tax

There is no endowment tax in Singapore.

1.5 Transfer duty

There is no transfer duty in Singapore.

1.6 Net wealth tax

There is no net wealth tax in Singapore.

1.7 Estate income

The assets left behind by the deceased may continue to produce income after their death. Income derived during the period from one day after death until the end of the administration period (for deaths on or after 15 February 2008, the period of administration is taken as one day after the date of death to 31 December of the year in which the Grant of Representation is issued by the courts) is termed estate income.

When an estate is no longer under administration and there are more investments and assets left in the estate, these will be held in trust for the beneficiaries. Income derived from assets belonging to the trust is covered in Section 7.

Examples of estate and trust income are:

• Rental income.
• Interest income.
• Share of profit from partnership (tax at trustee level is final).
• Profit from sole-proprietorship business (tax at trustee level is final).
• Dividends from shares declared after death (excluding exempt or one-tier dividends).
• Director’s fee and non-contractual bonuses declared after death.
• Income distributions from unit trusts and real estate investment trusts (REITs).
• Gains from share options exercised after death.
• Royalties.
• Other gains or profits of an income nature.

For joint bank accounts, upon the death of a joint account holder, the balance in the account will go to the surviving joint account holder(s), as the account lapses to the survivor(s). In this case, any interest income earned after the date of death is not the income of the estate and hence shall not be taxable under this provision.

In the case of properties held under joint tenancy, the surviving owner is required to declare the full share of income for the period after the death of the first owner from such properties in their personal income tax returns. For properties held under tenancy-in-common, the deceased’s share of income should be declared in the estate’s return.

The Income Tax Act 2007 enables beneficiaries, who are residents of Singapore and entitled to trust income, to be accorded the concessions, exemptions and foreign tax credits as if the beneficiaries had received the trust income directly. In other words, it is deemed to have retained the nature of the underlying trust income. No tax will be imposed at the trustee level, except in the case of income from a trade or business, in which case it is subject to a final tax at the trustee level and distributions are then considered nontaxable capital.

There used to be both inheritance tax (tax on the right of heirs to inherit) and estate tax (tax on the net estate of the decedent) in the Philippines.

Now, the Philippines only imposes estate tax, which applies on the fair market value of a decedent’s estate at the time of the person’s death. In determining the value of the gross estate, the FMV of all properties, real or personal, tangible or intangible, is included regardless of their location. With respect to nonresident aliens, only properties located in the Philippines are subject to estate tax.

The following should be included as part of gross estate:

• Decedent’s Interest. This refers to value of the decedent’s right or expectation (short of naked title) on a property.
• Transfers in Contemplation of Death. This refers to the value of any disposition, whether by trust or otherwise, that is intended to take place only after the decedent’s death (donation mortis causa).
• Revocable Transfers. The value of any transferred property in which the decedent retained the power to amend, alter or revoke the transfer during the decedent’s lifetime. This is regardless of whether the decedent actually exercised his or her power.
• Transfers with Retention of Rights of Ownership. This refers to the value of any transfer where the decedent retained the power to enjoy the fruits or income of the asset during the decedent’s lifetime. Since this means that the transfer done by decedent is not absolute and transfer of all rights of ownership will only take place upon the decedent’s death, the value of the asset transferred should still be considered part of the decedent’s gross estate.
• Property Passing under the General Power of Appointment. This refers to the value of any property transferred to the decedent during his or her lifetime wherein he or she was given the power to appoint any person, including himself or herself, to be the recipient or beneficiary. Since the decedent enjoys the right to dispose the property any way he or she wants to as if he or she is the owner, the value of such property should be included in the decedent’s gross estate.
• Proceeds of Life Insurance. The value of insurance proceeds from insurance policies taken out by the decedent upon his or her own life should be included in the gross estate of the decedent when the designation of the beneficiary is revocable or when the decedent has made himself or herself or the decedent’s estate, executor or administrator as the beneficiary regardless of whether the designation is irrevocable.
• Transfers for Insufficient Consideration. This refers to the excess of the FMV at the time of death over the value of the consideration received by the decedent for any disposition by sale that the decedent made during the decedent’s lifetime that is less than a bona fide sale for an adequate and full consideration in money or money’s worth.
• Property owned in Common with Surviving Spouse.This refers to the value of any property owned in common with the surviving spouse should be included in the decedent’s gross estate. However, the value of the equal share of the surviving spouse should be deducted from the estate after all conjugal expenses have been deducted from the gross estate.

The gross estate is entitled to claim the following deductible expenses to determine the net estate:

• Funeral Expense. Actual funeral expenses includes cost of clothes for bereavement or 5% of the gross estate, whichever is lower but in no case to exceed PhP200,000.00
• Judicial Expense. Fees of executors, administrators and lawyers as well as expenses for the preservation of the estate.
• Claims Against the Estate. Third-party creditor claims like loans obtained by the decedent. They must be evidenced by a notarized agreement.
• Claims Against Insolvent Persons. Basically, bad debts/receivables of the decedent.
• Mortgage Indebtedness, Taxes and Loss. This refers to unpaid mortgages, unpaid taxes before the death of decedent and any losses from fire, theft or embezzlement incurred by the estate that is not covered by insurance.
• Vanishing Deduction. Certain percentage of the value of an asset may be deducted from the gross estate if they were acquired by inheritance or by gratuitous title by the decedent at a time proximate to the decedent’s death. For example, the value of property acquired by decedent by inheritance at least 4 years but not more than 5 years before the decedent’s death may be deducted from the gross estate to the extent of 20% thereof. If such property was inherited by the decedent within 1 year before his or her death, then 100% of the value of such asset is deductible from his or her gross estate.
• Transfer for Public Use. Any bequeath, legacies, devisees to the Philippine government or any of its political subdivisions for public use.
• Family Home. The actual FMV of the decedent’s family home or PHP1 million, whichever is lower.
• Standard Deduction. The amount of PHP1 million is deductible, no questions asked.
• Medical Expenses. Actual medical expenses incurred within 1 year prior to the death of the decedent or PHP500,000, whichever is lower.

1.2 Gift tax

Donations made during the lifetime of the donor (donation inter vivos) is subject to donor’s tax. Donor’s tax is imposed on total net gifts made in any calendar year. Generally, any donation to a “stranger” is subject to donor’s tax at the rate of 30% of the FMV of the property or cash donated. Otherwise, the donation is subject to graduated scale that you will see under item 4 below. A “stranger” is a person who is not a:

• Brother or sister (whether by whole or half-blood), spouse, ancestor and lineal descendant; or
• Relative by consanguinity in the collateral line within the fourth degree of relationship.

Donor’s tax is also imposable on any transfer of any property (other than real property classified as capital asset) for less than adequate and full consideration in money or money’s worth.

1.3 Real estate transfer tax

Philippines has real estate transfer tax that is imposable on all transfers of real estate property including transfer by way of inheritance. Referred to as local transfer tax (LTT), it is imposed by the local government unit having jurisdiction over the location of the property and not by the national government. In the case of cities, the maximum rate of LTT is 75% of 1% of the FMV, zonal value or consideration received, whichever is higher of the 3. On the other hand, municipalities cannot impose LTT that is higher than 50% of 1% of the FMV, zonal value or consideration received, whichever is higher.

In case of transfer by way of inheritance, the LTT should be paid within 60 days from the time of death of the decedent.

1.4 Endowment tax

There is no endowment tax in the Philippines.

1.5 Transfer duty

There is no transfer duty in case of transfer by way of inheritance. Documentary stamp tax (DST) is applicable, however, on any transfer or disposition of real property or shares of stock in a domestic company, during the lifetime of the person. DST rate on transfer of shares is PHP.75 or PHP200 of the total par value of the shares. The DST on transfers of real property is PHP15 for every PHP1,000 of the zonal value, FMV or consideration received, whichever is higher.

New Zealand abolished estate tax with effect for persons dying on or after 17 December 1992 and currently has no form of estate duty, inheritance tax or capital transfer tax.

1.2 Gift tax(紐西蘭廢除了贈與稅)

Gift tax has been abolished for gifts made on or after 1 October 2011. The provisions outlined below will remain applicable in relation to gifts made before 1 October 2011.

1.3 Real estate transfer tax

New Zealand has no form of real estate transfer tax.

1.4 Endowment tax

New Zealand has no form of endowment tax.

1.5 Transfer duty(紐西蘭無移轉稅)

New Zealand has no form of transfer duty.

1.6 Net wealth tax

New Zealand has no net wealth tax.

1.7 Income tax

Income tax liabilities may arise in relation to assets that are gifted, which transfer to executors or administrators on an individual’s death, which are distributed to beneficiaries under a will or the intestacy rules, or which are distributed by trustees. The general rule deems the assets to have been disposed of and acquired at market value, which may result in income tax liabilities in relation to assets within the tax base, although exclusions and rollover relief may apply in some circumstances where transferees are spouses, civil union or de facto partners or close relatives. Rollover relief generally applies in relation to assets that are transferred under relationship property agreements or court orders.

1.8 Goods and services tax (GST)

GST is similar to a value-added tax (VAT) and is imposed on supplies of goods or services in New Zealand by persons who are formally GST-registered or who are liable to be so registered (because the level of their supplies of a GST-taxable nature in the current and preceding 11 months has exceeded NZ$60,000 or is expected to exceed that amount over the current and subsequent 11 months). GST may also be levied on goods imported into New Zealand, regardless of the GST status of the importer, and may apply by way of a reverse charge in relation to imported services in some circumstances.

GST-exempt activities include supplies of financial services (although some may be zero-rated in certain circumstances, which enables suppliers to claim-related GST input tax credits), supplies of certain fine metals and certain supplies of residential dwelling accommodation (other than in relation to commercial dwellings) and related land.

The Japanese Inheritance Tax Law (sozoku zei ho) covers inheritance tax (souzoku zei) and gift tax (zoyo zei). Inheritance tax is imposed on an individual who acquires property by inheritance or bequest upon the death of the decedent. Gift tax is imposed on an individual who acquires properties by gift (or economic benefit by deemed gift). Gift tax is a tax supplementary to inheritance tax. Both taxes are national taxes and no local tax is assessed on the transfer of property due to death or a gift.

Computation of inheritance tax

The individual heirs are taxed, but not the estate. Inheritance tax is imposed on the aggregate value of all properties acquired by inheritance or bequest. Inheritance tax is calculated separately for each statutory heir and legatee, regardless of how and to whom the property is to be distributed. Then, the total amount of tax calculated is allocated between those who will actually receive the decedent’s properties in accordance with his or her will or by agreement of the heirs by portion. The tax is calculated based on the statutory heirs and legatees, whereas the tax liability is attributed to those who actually acquire the properties.

Computation

The calculation is based on the following steps:

• Aggregate the amount of taxable properties acquired by all heirs and legatees (net of the liabilities succeeded).(日本徵收遺產稅)
• Deduct the basic exemption of ¥50 million plus ¥10 million multiplied by the number of statutory heirs from the amount of 1, “aggregated taxable estate value.”
• Allocate the aggregated taxable estate value to each statutory heir according to the statutory share.
• Calculate the inheritance tax separately for each statutory heir’s portion allocated in 3, by the application of the following progressive tax rates:
• (以下是稅率表,購買日本房地產必須注意稅的問題)

• Up to ¥10 million	10%
  Above ¥10 million up to ¥30 million	15%
  Above ¥30 million up to ¥50 million	20%
  Above ¥50 million up to ¥100 million	30%
  Above ¥100 million up to ¥300 million	40%
  Above ¥300 million	50%

• Aggregate the inheritance tax calculated in 4 above, “aggregated inheritance tax.”
• Allocate the aggregated inheritance tax to each of the heirs and legatees based on the ratio of the value of the taxable properties actually acquired by him or her against the aggregated taxable estate value.
• A 20% surtax is imposed on heirs or legatees of anyone who is not the decedent’s spouse, the decedent’s parents and the decedent’s children. Where the decedent’s grandchild became the decedent’s adopted child, he or she is also subject to a 20% surtax.
• Deduct applicable tax credits to each heir (see Section 4).

The property acquired by a gift from the deceased within 3 years of the death of the deceased is regarded as estate property. Any gift tax imposed on the acquisition of such property is creditable against the inheritance tax liability.

Sample case where the heirs consist of spouse and 2 children:

1.2 Gift tax

Gift tax is imposed on individuals who acquire property by gift during the lifetime of the donee. Gift tax is also imposed on economic benefits received by deemed gift.

Computation of gift tax(日本徵收贈與稅)

The taxable base of gift tax is determined as the value of properties obtained by a gift (or by a deemed gift) during each calendar year, after an annual basic exemption of ¥1.1 million. The applicable tax rates are as follows:

(以下是稅率表)

1.3 Real estate transfer tax

Registration and license tax

The registration of the transfer of ownership of real property by inheritance or bequest is subject to registration and license tax at the rate of 0.4% of assessed value of the land and building. The registration of the transfer of ownership by gift or sales is generally subject to registration and license tax at a standard rate of 2%. At present, the rate for land and residential buildings is tentatively reduced.

Real estate acquisition tax

The acquisition of real property by gift or sales is generally subject to real estate acquisition tax at 4%. At present, the rate for land and residential buildings is tentatively reduced. The acquisition of real property by inheritance or bequest is exempt from real estate acquisition tax.

1.4 Endowment tax

There is no endowment tax in Japan. As described in Section 4, if the heir makes donations of property to certain specified nonprofit organizations or foundations of the Japanese government, a local public organization by the filing due date of the inheritance tax, the property is exempt from the inheritance tax.

1.5 Transfer duty

There is no transfer duty other than real estate transfer taxes (see Section 1.3).

1.6 Net wealth tax

There is no tax imposed on net wealth in Japan.