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Property tax in Singapore
Your guide to property tax in Singapore
Property Tax in Singapore: What do You Need to Know?
Singapore is a leading hub for property investment in Southeast Asia. Property investment has become an important financial instrument for growing wealth through property capital appreciation and rental income.
Whether just for purely investment purposes or immigrating to Singapore, one should pay attention to the property taxes that apply for both locals and foreigners as it could have both short and long term financial impacts on your portfolio.
Singapore Property Tax Rates
Singapore property tax rate is progressive and there are two differing tax rates for owner-occupied and non-owner-occupied residential properties.
All other properties are also taxed at 10% of their Annual Value.
What is Annual Value?
Annual value is the estimated gross annual rent of the property if it were to be rented out, excluding furniture, furnishings and maintenance fees.
It is based on estimated market rent of similar or comparable properties and not on the actual rental income received.
The way the Annual Value is determined is the same for all properties whether its owner or non-owner occupied.
More information on Annual Value can be found on the IRAS page here
Calculating your property tax
The property tax is calculated based on the Annual Property Tax which is determined by multiplying the annual value with the property tax rate.
Owner-Occupier Tax Rates (Residential Properties)
Some examples of Owner-occupied residential properties can be condominiums, HDB flats or other residential properties where you would need to “physically live in the property”.
|
Owner-occupier Residential Tax Rates |
||
|
Annual Value ($) |
Effective 1 Jan 2015 | Property Tax Payable |
| First $8,000 |
0% |
$0 |
| Next $47,000 |
4% |
$1,880 |
| First $55,000 | - | $1,880 |
| Next $15,000 |
6% |
$ 900 |
| First $70,000 | - | $2,780 |
| Next $15,000 | 8% | $1,200 |
| First $85,000 | - | $3,980 |
| Next $15,000 | 10% | $1,500 |
| First $100,000 | - | $5,480 |
| Next $15,000 | 12% | $1,800 |
| First $115,000 | - | $7,280 |
| Next $15,000 | 14% | $2,100 |
| First $130,000 | - |
$9,380 |
| Above $130,000 | 16% | |
Non-owner-occupier Residential Tax Rates (Residential Properties)
Some examples of Non-owner-occupied residential properties can be condominiums, HDB flats or other residential properties.
The following tax rates apply to non-owner-occupied properties except for those in the exclusion list.
The following tax rates apply to non-owner-occupied properties.
|
Non-owner-occupier Residential Tax Rates |
||
|
Annual Value ($) |
Effective 1 Jan 2015 | Property Tax Payable |
| First $30,000 |
10% |
$3000 |
| Next $15,000 |
12% |
$1,800 |
| First $45,000 | - | $4,800 |
| Next $15,000 |
14% |
$ 2100 |
| First $60,000 | - | $6,900 |
| Next $15,000 | 16% | $2,400 |
| First $75,000 | - | $9,300 |
| Next $15,000 | 18% | $2,700 |
| First $90,000 | - |
$12,000 |
| Above $90,000 | 20% | |
Source: IRAS
Residential properties which are rented out are considered investment assets and hence are taxed at a higher rate than owner-occupied properties.
This tax structure makes the property tax system more progressive by ensuring that higher-value properties would be subject to higher tax rates.
The above tax rates apply to non-owner-occupied properties except for those in the exclusion list specified by IRAS.
These kinds of properties will continue to be tax at 10%
Penalty on Late Payment of Property Tax
In Singapore, taxes are due on the 31st of January every year and 30 days from the bill date, to settle their taxes.
And in case you pay late, there will be a penalty of 5% on the unpaid taxes. However, you are given the right to appeal or ask for the waiver of the late fee waiver. And such may be considered when you pay your overdue tax in full, or if you have been good at paying for the past two years.
If the amount hasn’t been settled even with the final notice of payment, the billing institution may request the amount to be deducted from your bank account. This is done through the GIRO payment system in Singapore or the General Interbank Recurring Order.
However, this is set by the owner or payer online.
Tax Exemption
In Singapore, there are a few types of properties which are eligible for a tax exemption. These include, properties which are being used as places of worship, charitable purposes, for education or schooling, and those which promote social development in the country.