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Property Tax in Singapore



Property Tax in Singapore


Property tax is a levy imposed on the ownership of properties in Singapore, regardless of whether it's rented out, owner-occupied, or vacant. The tax revenue helps fund public services like education, healthcare, and infrastructure.


Here's a quick overview of property tax in Singapore:


Calculating Property Tax:


  • Formula: Annual property tax = Annual Value (AV) x Property Tax Rate

  • Annual Value (AV): Estimated annual rental income of the property, determined by the Inland Revenue Authority of Singapore (IRAS) based on similar properties.

  • Property Tax Rates:

  • Residential: Progressive rates for owner-occupied and non-owner-occupied properties.

  • Non-residential: Flat rate of 10% of the AV.


Additional Information:


  • You can find property tax rates and sample calculations on the IRAS website.

  • There are exemptions and reliefs available for certain types of properties and owners.

  • You can pay your property tax online, through GIRO, or at designated collection points.

Owner-Occupied Tax Rates


In Singapore, owner-occupied residential properties enjoy lower tax rates compared to non-occupied ones. This is to encourage homeownership. The owner-occupied tax rates are progressive, meaning they increase as the Annual Value (AV) of the property increases.

Here's what you need to know:


Key Points:


  • Lower tax rates: Compared to non-occupied properties.

  • Progressive rates: Higher AV, higher tax rate.

  • HDB flats: Generally not affected by increased rates as their AV is usually below 30,000.

  • ∗Current Rates (as of January 1,2024):∗∗ ∣Annual Value Range ($) | Tax Rate | | Up to 8,000 | 0% | | 8,001 - 30,000 | 4% | | 30,001 - 40,000 | 6% | | 40,001 - 55,000 | 10% | | 55,001 - 70,000 | 14% | | 70,001 - 85,000 | 20% | | 85,001 - 100,000 | 26% | | Above 100,001 | 32% |


Additional Notes:


  • You can check the tax rate applied to your property on your latest property tax bill. It will mention "Owner-Occupier Tax Rates" if the concession applies.

  • If you're unsure about your eligibility or have further questions, you can contact the IRAS at 1800-356 8300 or visit their website for more information.


Non-owner-occupier Residential Tax Rates


Unlike owner-occupied properties, non-owner-occupied residential properties in Singapore face higher and progressive property tax rates. This aims to encourage owner-occupancy and discourage properties being left vacant. Here's what you need to know:


Key Points:


  • Higher tax rates: Compared to owner-occupied properties.

  • Progressive rates: Higher AV, higher tax rate.

  • **No exemption for the first 8,000 of AV: ∗∗Unlike owner−occupied properties. ∗∗Current Rates (as of January 1, 2024): ∗∗ ∣Annual Value Range ($) | Tax Rate | | Up to 30,000 | 12% | | 30,001 - 45,000 | 20% | | 45,001 - 60,000 | 28% | | Above 60,000 | 36% |


Exception:


  • Properties on the exclusion list (e.g., certain student hostels and welfare homes) are taxed at a flat rate of 10%.


Additional Notes:


  • You can find out if your property falls under the exclusion list by contacting the IRAS.

  • Similar to owner-occupied properties, the tax rate applied will be reflected on your property tax bill.


Remember, these are just the current rates as of February 28, 2024. They might be subject to change in future budgets, so it's always good practice to stay updated with the IRAS website for any adjustments.


Resources:



How Bestar can Help


Based on our general tax services and considering the complexities of property tax in Singapore, here are some areas where Bestar might assist with property tax:


1. Understanding Your Property Tax Bill:


  • Interpreting the Bill: Bestar's tax experts could help you understand the breakdown of your property tax bill, including the applied tax rate, Annual Value (AV), and any exemptions or reliefs you qualify for.


2. Reviewing Your Annual Value (AV):


  • Challenging the AV: If you believe the IRAS has assigned an inaccurate AV to your property, Bestar might assist you in reviewing the valuation and potentially filing a request for reassessment.


3. Exploring Tax Relief Options:


  • Identifying Eligibility: Bestar could help you explore various property tax reliefs available in Singapore, such as those for first-time homeowners, senior citizens, or properties with disabilities.


4. Keeping You Informed:


  • Staying Updated: Bestar might keep you informed about any changes in property tax regulations or new reliefs introduced by the government.


5. Liaising with IRAS:


  • Communication Assistance: In case of complex situations or disputes with the IRAS, Bestar could potentially assist you with communication and navigating the process.


Contact Bestar and inquire about our specific services regarding property tax in Singapore. We can provide personalized guidance based on your individual situation.




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