Category Archives: Tax Matters / Property Tax

Property tax boon may be short-lived

Posted on 27 Feb 2010 | Comments Off on Property tax boon may be short-lived

I REFER to the revision of the property tax rate on owner occupied properties which has the effect of reducing by $240 the property tax currently paid by the majority of homeowners, based on exemption of tax on the first $6,000 of annual value (AV) which at present attracts tax at 4 per cent.

The benefit of the rate change, alas, may not last long if the IRAS starts revaluing the AV on the grounds that the property market has been unusually strong of late and likewise for rentals. If AV increases by $6,000, there goes the $240.

In revising AV, it should be borne in mind that to the owner occupant, even a doubling of notional rental makes no difference in terms of income.

Denis Distant

Source : Business Times – 27 Feb 2010



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Give us a break – increase personal tax relief

Posted on 25 Feb 2010 | Comments Off on Give us a break – increase personal tax relief

THIS year’s Budget was disappointing because it excluded tax breaks for individuals and families.

Personal relief for the taxpayer, his spouse and qualifying child relief deserved attention. The wife relief of $2,000 per year works out to about $5.50 per day.

The Finance Ministry should also have left the 20 per cent income tax rebate untouched, at least for this year.

Increasing the personal tax relief will put more cash in the hands of many cash-strapped breadwinners.

The Government will get some, if not much, of it back anyway via the goods and services tax.

While the economy may have brightened somewhat, middle-income earners are still struggling, especially with cashflow problems.

Andy Leong

Source : Straits Times – 25 Feb 2010

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