16.—(1) Any conveyance or transfer operating as a voluntary disposition inter vivos is chargeable with the like stamp duty as if it were a conveyance or transfer on sale, with the substitution in each case of the value of the property conveyed or transferred for the amount or value of the consideration of the sale.
(2) Any conveyance or transfer (not being a disposition made in favour of a purchaser or incumbrancer or other person in good faith and for valuable consideration) is, for the purposes of this section, deemed to be a conveyance or transfer operating as a voluntary disposition inter vivos, and (except where marriage is the consideration) the consideration for any conveyance or transfer is not for this purpose deemed to be valuable consideration where the Commissioner is of the opinion that by reason of the inadequacy of the sum paid as consideration or other circumstances the conveyance or transfer confers a substantial benefit on the person to whom the property is conveyed or transferred.
(3) For the purpose of subsection (2) —
(a)
a conveyance or transfer is treated as a conveyance or transfer made in consideration of marriage if —
(i)
the transferor is a party to the marriage or is a parent, grandparent or sibling of a party to the marriage;
(ii)
the transferee is a party to the marriage;
(iii)
the property or interest in the property conveyed or transferred is the matrimonial home of the parties to the marriage;
(iv)
the property or interest in the property is conveyed or transferred within the specified time period; and
(v)
there is no other property or interest in the property conveyed or transferred to the parties on the occasion of that marriage in respect of which ad valorem duty has not been charged because marriage was the consideration; and
(b)
a conveyance or transfer is not to be treated as a conveyance or transfer made in consideration of marriage if —
(i)
the marriage is between 2 parties who had previously been married to each other; and
(ii)
ad valorem duty was not charged on any property or interest in the property conveyed or transferred to the parties on the occasion of the previous marriage because marriage was the consideration.
(4) In subsection (3) —
“parent”, in relation to a party to the marriage, means —
(a)
a natural parent of the party;
(b)
a person by whom the party was adopted in accordance with any written law relating to the adoption of children; or
(c)
a step‑parent of the party,
and “grandparent” is to be construed accordingly;
“specified time period” means —
(a)
one year before or after the date of solemnisation of a marriage; or
(b)
such other time period as may be prescribed in lieu of the time period specified in paragraph (a).
(5) A conveyance or transfer made —
(a)
for nominal consideration for the purpose of securing the repayment of an advance or loan;
(b)
for effectuating the appointment of a new trustee or the retirement of a trustee, whether the trust is expressed or implied;
(c)
under which no beneficial interest passes in the property conveyed or transferred; or
(d)
to a beneficiary by a trustee or other person in a fiduciary capacity under any trust, whether expressed or implied,
is not chargeable with duty under this section.
(6) Subsection (5) has effect even though the circumstances exempting the conveyance or transfer from charge under this section are not set out in the conveyance or transfer.
(7) Where equity interests in an entity were conveyed or transferred on or after 10 May 2022 to a trustee to hold on trust for a beneficiary who is not a bare trust beneficiary, then subsection (5)(d) does not apply to a conveyance or transfer, executed on or after that date, by the trustee of those equity interests to the beneficiary.
[Act 22 of 2022 wef 10/05/2022]
(8) In subsection (7), “entity” and “equity interest” have the meanings given by section 23(21).
[Act 22 of 2022 wef 10/05/2022]
(9) To avoid doubt, this section applies to a settlement that is made voluntarily.