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Anonymous

26 Oct 2019

Property

Is there tax payable shifting from a jumbo HDB flat to a new BTO flat?

When I asked the CPF board about shifting from a jumbo HDB flat to a new BTO flat, they claimed that I would need to pay a tax of $200k plus, kindly advise?

Discussion (1)

What are your thoughts?

Cedric Jamie Soh

Cedric Jamie Soh

26 Oct 2019

Level 12·Director at Seniorcare.com.sg

Probably NOT "tax" for the IRAS.

The amount of CPF you had used from your CPF to pay for your jumbo HDB flat, now that you sold it to move to a new place, the amount must be repaid from your selling price of the old flat.

You have to repay

  1. the original amount of CPF you had used for that flat
  2. The 2.5% per year interest on the amount you had used, that amount is money you would have earned if your CPF had not been used for the flat. This must be paid back from your sales of flat.

For a very SIMPLE example, I used $1000 per mth from my CPF for 5 yrs.

That's $12000 from each year

  • I have to repay $12000 x 5yrs PLUS
  • 2.5% for 5 yrs of the $12000 used in the 1st year
  • 2.5% for 4 yrs of the $12000 used in the 2nd year
  • 2.5% for 3 yrs of the $12000 used in the 3rd year
  • 2.5% for 2 yrs of the $12000 used in the 4th year
  • 2.5% for 1 yr of the $12000 used in the 5th year

This may help you.

https://services2.hdb.gov.sg/webapp/BB24SalePro...

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