Certain kind of properties will qualify for a property tax relief depending on specific scenarios. Your eligibility for a property tax relief will vary based on the nature of the property you own and for what purpose you use it for.
When you’re an individual or a married couple who is residing in your own residential property, you will be liable to pay a lower tax rate on your property. Also, these property tax rates correspond to “owner-occupier” tax rates. Here, an owner-occupied residential property can be a landed housing, an HDB flat, or a condominium.
As an individual owner, if you intend to demolish and rebuild your property for succeeding ownership-occupation, you’ll qualify for “Bldg Land Remission”.
In case as a residential property owner you decide to demolish your house and build a new one, you can raise an application for property tax remission. You can apply for up to 2 years of remission under the Property Tax (Replacement Owner-Occupied House under Construction) (Remission) Order 2013.
If you’re a property owner who is eligible for this property tax remission, you’ll continue to qualify for owner-occupier tax rates on your property throughout the time of construction.
As an owner if you’re currently enjoying this remission, you don’t need to perform any further step and you’ll continue to qualify for the property remission according to the newly passed order.
What are the qualifying conditions to apply for remission?
The term of remission extends to 2 years (maximum) from the specific date on which the land assessment takes place or the date on which the building plans were submitted to BCA (Building and Construction Authority), based on whichever happens later; till the date on which the Temporary Occupation Permit date is issued or the Certificate of Statutory Completion is issued in relation to the replacement house, based on which happens earlier.
When you comply with all of the applicable eligibility conditions, you will qualify for owner-occupier rates as a property owner.
If you’re not successful in meeting the necessary remission conditions, the remission will need to be withdrawn and you need to pay the difference in the tax amount. You will be notified by IRAS regarding the tax amount you need to pay. The difference in the tax amount could be subjected to 5% additional charge which will be decided by the Comptroller of Property Tax.
In case a property is utilised for charitable reasons, public worship (religious), or for educational reasons and is owned by a charity company that is registered, an application for S6(6) Building Exemption can be submitted.
S6(6) of PTA (Property Tax Act) renders property tax payment exemption when you’re able to satisfy the Comptroller with necessary information that either your complete building or a part of it is being used for any of the following reasons:
Note: When only a few sections of the property qualify for tax exemption, IRAS will grant partial tax exemption to you.
Section 6(6A) of PTA (Property tax Act) renders property tax exemption when the Comptroller is convinced that the land is utilised, or it will undergo development, or is undergoing a transformation into a new building with an aim to be used for any of the purposes that are mentioned in the eligibility criteria section.
To submit your application to qualify for an exemption, you need to raise a request to the comptroller of property tax (in writing) along with supporting details which mentions about the land’s utility purpose under S6(6). You can send in your details through post to the address given below:
Property Tax Division
IRAS (Inland Revenue Authority of Singapore)
55 Newton Road
If you’re an individual owner who has brought a plot with an intention to construct a residential property and intend to occupy it subsequently (as an owner), you’ll be able to submit an application for Vacant Land Remission.
You need to comply with the following criteria in order to qualify for this property tax relief:
The remission period is applicable for a maximum of 2 years from the specific date on which the building plans are submitted to the Building Authority until the TOP issue date or Certificate of Statutory Completion for the replacing house, depending on whichever occurs earlier.
In case as an owner if you’re unable to meet the remission criteria, you will have to withdraw the remission and make a payment to settle the remaining tax amount. You’ll receive a notification from IRAS about the tax payable amount you’re liable for. Also, this tax amount difference might be subjected to an extra charge of 5% based on what the Comptroller of Property Tax decides.
Note: A remission will be applicable only for a single house construction. Also, for the remission to be applicable you need to reside in the property and the land parcel’s Annual Value (AV) should be below S$190,000.