• Property Tax in Singapore :Every thing You want to Know

    Property tax is the tax applied by the Inland Revenue Authority of Singapore (IRAS) on the ownership of a property. Property tax is applicable irrespective of whether the property is owner-occupied, has been rented out or left vacant.

    Property tax is not the same as income tax. Income tax is applicable on all your earned income including the income derived from renting out your property.

    How to Calculate Property Tax?

    Property tax is calculated as follows:

    Your property’s Annual Value (AV) x Property Tax Rate applicable to you.

    Annual value is the estimation of your property’s annual rent.

    Here are the property tax rates for residential as well as non-residential properties:

    • Residential Properties:
      • Tax rates for owner-occupier properties - Between 0% and 16%.
      • Tax rates for non-owner occupier properties - Between 10% and 20%.
      • Tax rates are dependent on the AV bands.
    • Non-Residential Properties - Land, commercial/industrial buildings, etc. are subject to 10% tax.

    When to Pay Property Tax?

    Property tax is payable on a yearly basis. Every year-end, you will receive a tax bill for your property for the next year. Payment on your property tax bill is due on 31 January of every year.

    How to Pay Property Tax

    Property taxes can be paid through the following ways:

    • GIRO (most preferred payment mode).
    • Electronic payment modes include the following:
      • Internet Banking - Applicable to UOB, DBS, POSB, OCBC, HSBC, Standard Chartered Bank, Maybank, ICBC, CIMB, BOC, RHB and State Bank of India customers. Corporate account holders can make payments through OCBC, HSBC, UOB and Standard Chartered Bank only.
      • Phone Banking - Applicable to UOB, OCBC, POSB and DBS customers.
      • ATMs - Applicable to POSB, DBS and OCBC customers.
      • AXS e-Stations and AXS m-Stations.
      • AXS Stations.
      • SAM Web/Mobile.
      • SAM Kiosk.
      • NETS - Applicable at Singapore Post Branch through over-the-counter payment only.
    • Other payment modes include:
      • Credit cards.
      • Telegraphic Transfer - Applicable only if you are overseas and no other payment mode is available to you.

    Property Tax Rates in Singapore

    Residential properties that are owner-occupied as well as non-owner occupied are taxed on a progressive scale. Non-residential properties are taxed at 10% of the property’s Annual Value.

    Here are the residential tax rates for owner-occupied properties(OOP Tax Rates 2017):

    Tax Rates for Owner-Occupier Properties

    Annual Value

    Effective from 1 January 2015

    Payable Property Tax

    Initial S$8,000 Next S$47,000

    0% 4%

    S$0 to S$1,880

    Initial S$55,000 Next S$15,000

    Not Applicable 6%

    S$1,880 to S$   900

    Initial S$70,000 Next S$15,000

    Not Applicable 8%

    S$2,780 to S$1,200

    Initial S$85,000 Next S$15,000

    Not Applicable 10%

    S$3,980 to S$1,500

    Initial S$100,000 Next S$15,000

    Not Applicable 12%

    S$5,480 to S$1,800

    Initial S$115,000 Next S$15,000

    Not Applicable 14%

    S$7,280 to S$2,100

    Initial S$130,000 Above S$130,000

    Not Applicable 16%

    S$9,380

    Here are the residential tax rates for non-owner occupied properties(NOOP Tax rates 2017):

    Residential Tax Rates

    Annual Value

    Effective from 1 January 2015

    Payable Property Tax

    Initial S$30,000 Next S$15,000

    10% 12%

    S$3,000 S$1,800

    Initial S$45,000 Next S$15,000

    Not Applicable 14%

    S$4,800 to S$2,100

    Initial S$60,000 Next S$15,000

    Not Applicable 16%

    S$6,900 to $2,400

    Initial S$75,000 Next S$15,000

    Not Applicable 18%

    S$9,300 to S$2,700

    Initial S$90,000 Above S$90,000

    Not Applicable 20%

    S$12,000

    Note: The aforementioned taxes are applicable to HDB flats, condominiums or any other residential property.

    Here are the property taxes payable by HDB flat owner-occupiers in 2017:

     Type of HDB Flat

     Property Tax Payable for 2017

    1-Room and 2-Room Flat

    S$0

    3-Room Flat

    S$0 to S$18.40

    4-Room Flat

    S$52.00 to SS$100.00

    5-Room Flat

    S$83.20 to S$131.20

    Executive Flat excluding Executive Condominiums

    S$95.20 to S$143.20

    The IRAS encourages home ownership. This is why HDB flats that are owner-occupied are taxed on a lower slab.

    The IRAS bills all owners during the months and November and December each year for the following year. The tax bills must be paid by 31 January of the following year.

    List of Properties on which Property Tax excluded in Sinagpore

    The following properties are on the Exclusion List and will be subject to 10% tax:

    • Welfare home.
    • Backpackers' hostel, guest house or boarding house, hotel.
    • Chalet.
    • Serviced apartment.
    • Accommodation facilities that are inside recreational clubs or sports clubs.
    • Kindergarten, student care centre or child care centre.
    • Hospital, nursing care, hospice, or any place for rehabilitation, convalescence or any place for similar purposes.
    • Student's boarding hostel or house.
    • Workers' dormitory.
    • Staff quarters that belong to a property that is exempted from paying tax under the s6 (6) of the Property Tax Act.

    For any of the aforementioned properties, planning approval must be received. There is no requirement to apply to the IRAS.

    Property Tax Reliefs

    Certain properties are eligible for property tax relief under specific circumstances.

    Owner-occupied Residential Properties:

    Individuals or married couples who own and live in their residential property will pay lower tax rates. These tax rates are known as owner-occupier tax rates. The tax rates for such properties have been mentioned above.

    Residential Properties that have been Demolished & Rebuilt:

    Individual owners whose property is being demolished and rebuilt for subsequent ownership-occupation are eligible for “Bldg Land Remission” under the following conditions:

    • The property is not occupied.
    • No fee or rent has been received or charged for any use or occupation of the property or any part of it.
    • During such remission period, the owner or their spouse are not exercising owner-occupier concession on any other property.
    • The replacement property will be owner-occupied for a minimum period of 1 year after the date of Temporary Occupation Permit (TOP) or the date of Certificate of Statutory Completion (CSC) provided by the Building Authority.

    The remission period extends to a maximum of 2 years from the land assessment date or the submission date of building plans to the Building Authority, depending on whichever occurs later until the TOP issue date or CSC for the replacement house, depending on whichever occurs earlier.

    If all of the above criteria are fulfilled, the owner will enjoy the owner-occupier tax rates.

    Non-residential Properties used for charitable purposes or for public worship:

    If the property is being used for educational purposes, public religious worship, as a registered charity, etc. you can seek an exemption on property tax under “S6 (6) Building Exemption”.

    Here are the qualifying conditions for Section S (6) of the Property Tax:

    • The property is being used for public religious worship.
    • The property is being used for charitable purposes.
    • The property is being used as a public school that receives government grant-in-aid.
    •  The property is being used for social development in Singapore.

    Note: If only parts of the said property are eligible for exemption, then the IRAS will only offer partial exemption.

    Vacant land to be used for owner-occupier homes:

    Individual owners who have purchased land to build a house and for subsequent occupancy are eligible for “Vacant Land Remission”.

    The following conditions have to be satisfied for this tax relief:

    • The land is not currently occupied.
    • No fee or rent has been received or charged for any use or occupation of the land or any part of it.
    • During such remission period, the owner or their spouse are not exercising owner-occupier concession on any other property.
    • The replacement property will be owner-occupied for a minimum period of 1 year after the date of Temporary Occupation Permit (TOP) or the date of Certificate of Statutory Completion (CSC) provided by the Building Authority.
    • The Annual Value of the land parcel should not exceed S$190,000.

    The remission period applicable is a maximum of 2 years from the submission date of building plans to the Building Authority until the TOP issue date or CSC for the replacement house, depending on whichever occurs earlier.

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