Who pays Property Tax
Under Property Tax Act, everyone who owns property needs to pay property tax to Inland Revenue Authority of Singapore (IRAS). Property tax is a tax on property and not on the person. However, the tax shall be payable by whoever happens to be the ‘owner’ of the property when the tax becomes payable.
Anyone whose name is on the Valuation List is defined as owner:
- Owner
- Power of Attorney (Agent)
- Trustee
- Lessee who has taken more than 3 years lease with the government or any public authority eg, JTC, SLA, HDB, etc is defines as owner in the Property Tax Act
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Property Tax Payable
Your property tax is computed based on a percentage of the Annual Value (AV) of your property. Only immovable properties are subject to Property Tax. Moveable properties such as furniture and machinery are not taxed.
Owner Occupied
Conditions for PPTR:
- Only to individual owners
- Only on one dwelling
- Owner must occupy the dwelling house
- Married couple eligible for only one dwelling. ie, if husband and wife each buys different properties under sole name, PPTR can be applied to one residential property regardless whether others are rented out.
**If you are using your residential home as an office, you pay PPTR as long as you own the home and live in the home.
**If you own both a HDB flat and a private residential property, the owner-occupier concession will automatically apply to the HDB flat as HDB flat owners are required to live in their flats. But if you wholly rent out your flat and live in your private residential property, the owner-occupier concession on your flat will be withdrawn from the date of letting. You may then apply for the owner-occupier concession for your other private property.
Progressive Property Tax Regime (PPTR)
| Annual Value |
Rate |
| First $6,000 |
0 % |
| Next $59,000 |
4 % |
| Amount exceeding $65,000 |
6 % |
Example:
Assuming the Annual Value is $96,000
| First $6,000 x 0% |
= $0 |
| Next $59,000 x 4% |
= $2,360 |
| Remaining $31,000 x 6% |
= $1,860 |
| Property Tax payable is $4,220 per year |
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Investment and all other properties
Property Tax payable is 10% of Annual Value. Let-out or vacant residential properties will continue to be taxed at 10%.
Example 1:
An apartment let out at $4,000 per month unfurnished excluding monthly service charge of $300 (landlord responsible for external repairs, insurance, maintenance and property tax, etc).
| Annual Value |
= Rent x 12 |
|
= $4,000 x 12 |
|
= $48,000 per year |
| Property Tax |
= 10% x AV |
|
= 10% x $48,000 |
| Property Tax payable is $4,800 per year |
Example 2:
A house let out at $5,200 per month, furnished and including monthly service charge of $300 (The tenant is responsible external & internal repairs and insurance estimated $6,000 per year).
Rent is $4,000
Rental of furniture is $9,00
Monthly service charge is $300
| Annual Value |
= (Rent x 12) + $6,000 |
|
= ($4,000 x 12) + $6,000 |
|
= $54,000 per year |
| Property Tax |
= 10% x AV |
|
= 10% x $54,000 |
| Property Tax payable is $5,400 per year
You may want to use the Property Tax Calculator to calculate the property Tax.
For more information, please visit Inland Revenue Authority of Singapore.
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*Please note that information provided is as it is basis, whilst every effort has been made to provide up-to-date information. The author is not responsible for inaccuracies or whatsoever as a result from using this information.
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