Property tax is the tax applied by the Inland Revenue Authority of Singapore (IRAS) on the ownership of a property. It 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.
Property tax is calculated as follows:
Your property’s Annual Value (AV) x the “Property Tax Rate” that is applicable
Here, Annual Value is the estimation of your property’s annual rent (assuming you’ll rent out your property).
Land, commercial/industrial buildings, etc. are taxable at 10% of the AV. The tax rates (owner-occupier) are not applicable to a non-residential property even if you have purchased the property for your occupation or own use.
Property tax is payable on a yearly basis. Every year end, you will receive a tax bill for your property for the following year. Payment on your property tax bill is due on 31 January of every year.
The following properties are on the “Exclusion List” and will be subject to 10% tax:
For any of the aforementioned properties, planning approval must be received. There is no requirement to apply to the IRAS.
The Annual Value of a building is the gross yearly rent (estimated) a property would earn in case the property was rented out. This excludes maintenance charges, furnishings, and furniture. It is calculated depending on the market rentals (estimated) of similar kind of properties. It will not be determined based on the rental income that is actually received.
The AV calculation method will not vary depending on whether the property is vacant, owner-occupied, or rented out. The property tax you’re liable to pay will be calculated by applying the pertinent tax rate on the Annual Value.
It is calculated at 5% of the freehold market price (estimated). This is applicable to vacant land as well as land which is under construction.
Let’s assume your land’s freehold market value is S$6 million. The Annual Value of your land will be S$300,000 (5% x S$6,000,000).
Properties like refineries, petrochemical & power plants are occasionally rented out and hence known as specialised properties. The Annual Value of a specialised property can be determined in 2 ways:
Statutory Gross Receipts Method
Your specialised property’s AV will be calculated at 5% of the freehold market rate. For ports and hotels, this method will be used to calculate the Annual Value.
Profit's Method and Contractor's Test
Another method to calculate the AV of your property, in this method, receipts and costs will be used in order to arrive at an estimation of market rents of the specialised properties.
IRAS will review the Annual Value of your property on a yearly basis. This is done in order to project the variations in the market rental rates of similar or comparable properties. There will be a correction in the Annual Value if the most recent market rent information doesn’t match your existing Annual Value.
In case your property goes through a physical alteration, it could have an impact on its rental value. IRAS will revise your Annual Value from the date on which the physical change was made (as applicable).
As a property owner, you will receive a “Valuation Notice” from IRAS. This notice will intimate you in relation to any downward or upward adjustment that was done to the Annual Value and the date on which it will be effective from.
You can perform the following activities via e-Services:
Note: In case you want to access the old payment you’ve made, you can view them by signing into “mytax.iras.gov.sg” (you need to navigate to "View Account Summary").
Q. How do I unsubscribe from getting e-PT bills?
A. You can do it in 2 ways:
PAPERBILL (space) your mobile number (space) last 4 number of your FIN/NRIC (example: PAPERBILL 98449971 4567)
You need to sign in to “mytax.iras.gov.sg” and access the following path:
Account-> Manage e-Notice Preferences & cancel your subscription by unchecking the “Subscribe” box.
Q. What tax rates are applicable for shopflats or shophouses with two distinctive uses?
A. The commercial component will be taxed at 10%. On the other hand, the residential component will be subjected to a property tax rate that is applicable to residential properties.
Q. What happens when I choose to stop renting out my residential property and I decide to move in instead?
A. When your property’s lease period ends and you move back into your residential property, you’ll need to submit an application again so that the “owner-occupier” tax rates are restored with respect to your property.
Q. How do I check the Annual Value of my property?
A. With the help of an e-Service called “View Property Portfolio”, you’ll be able to check the Annual Value of your property. AVs will be displayed as per the current date. Alternatively, you can also use “Check Annual Value of Property” by paying S$2.50 per search.
Q. Can I raise an objection to the Annual Value?
A. The Annual Value and/or its effective date can be objected by you in less than 30 days from the Valuation Notice date. In case you didn’t get the Valuation Notice, you can raise an objection to the Annual Value at any given point in time of the year by proving that the market values have become lower than the Annual Value. However, you will not be eligible to raise an objection to the tax rates.
Q. What can I do if my objection is rejected?
A. You can appeal to VRB (Valuation Review Board) in less than 30 days of receiving your notice (in relation to the result of your objection filed). Your appeal should mention the reasons due to which you’re making an appeal and also if you’re being represented by an agent.
You’ll be liable to make the following fee payments to VRB: