Property Tax Reliefs Singapore

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.

A Residential Property (Owner-Occupied):

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.

A Residential Property Which is Demolished & Reconstructed:

As an individual owner, if you intend to demolish and rebuild your property for succeeding ownership-occupation, you’ll qualify for “Bldg Land Remission”.

What is 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 property has not been in use.
  • Rent or fee has not been either charged or received for occupying the property, or for any kind of usage of the land or for using it partly.
  • While on the remission period, neither the owner of the property nor the owner’s spouse has exercised the owner-occupier tax concession on another property.
  • The replacement residential building will be occupied by the owner for 1 year at least post the date of Certificate of Statutory Completion (CSC) or the date of Temporary Occupation Permit (TOP) is rendered by BCA (The Building and Construction Authority).

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.

A Non-Residential Property Which is Utilised Either for Public Worship or for Charity:

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:

  • The usage of the property is for religious public worship.
  • The utilisation of the property is for charitable reasons.
  • The property takes the role of a public school and it gets grant-in-aid from the Singapore government.
  • The property is being used with the aim to develop social life in Singapore.

Note: When only a few sections of the property qualify for tax exemption, IRAS will grant partial tax exemption to you.

Exemption when the land is filled up by a building

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.

How to apply for an exemption

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:

Exemption Team

Property Tax Division

IRAS (Inland Revenue Authority of Singapore)

55 Newton Road

Revenue House

Singapore 307987

A Vacant Land Which is Utilised to Construct an Owner-Occupied Home

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 plot is not in use.
  • A fee or rent hasn’t been either charged or received for any kind of land usage or land occupation or for a section of it.
  • For the entire remission period, the owner and/or spouse should not be exercising the owner-occupier tax concession on another residential property.
  • The replacement building is occupied by the owner for minimum 1 year post CSC (Certificate of Statutory Completion) or TOP (Temporary Occupation Permit) is issued by the BCA (Building and Construction Authority).
  • The plot’s AV (Annual Value) should be below S$190,000.

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.


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