Homeowners in Singapore will benefit from paying lower property taxes in 2016 compared to this year, revealed the Inland Revenue Authority of Singapore (IRAS).
This is due to the reduced Annual Values (AVs) of HDB and private homes in line with market rentals.
In a statement, IRAS said the tax savings for HDB flats will range from nine to 24 percent, while over 80 percent of private homeowners will enjoy tax savings of between three and 20 percent.
In particular, all 1- and 2-room HDB flat dwellers and 28,200 3-room HDB flat owners will not have to pay any property taxes.
IRAS reviews the AVs of properties annually to ensure that they reflect prevailing market rentals.
Property tax is a tax on property ownership and it is payable on all properties regardless whether the property is rented out, owner-occupied, or left vacant.
According to IRAS, property tax has to be paid by 31 January 2016. A five percent penalty will be imposed on those who fail to pay their tax by that date.
For more information, go to www.iras.gov.sg