Home Owners will pay less Singapore property tax in 2016 as Rental Values of Properties drop: IRAS
As the Annual Values of property drop in line with rents, most of HBD (Housing Board) and private homeowners will pay less or no property tax in Singapore next year.
All Housing Board (HBD) flat owners will pay lower or no property tax in 2016 while over 80% of private residential property owners will pay low property tax, IRAS (Inland Revenue Authority of Singapore) announced in a statement issued on 30 November 2015.
Meanwhile, HDB flat owners will enjoy tax savings in the range of 9 per cent to 24 per cent, as compared to what they had paid in 2015 and 9 in 10 private property owners will see tax savings between 3 per cent to 20 per cent, IRAS added.
In addition to it, all 1 and 2-room HDB flat owner-occupiers and 28,200 3-room HDB flat owner occupiers will be exempted from property tax payment when the revised annual values will be in force from Jan 1st, next year. The extent of the reduction in annual values of the property is yet to be reveal by the IRAS. Taxes will also be lowered for the owner-occupied 4 rooms, 5 rooms and executive HBD flats.
The Annual Values of properties are reviewed on an annual basis in order to ensure that they show the prevailing market rentals. The reduction in annual values for Singapore properties was in line with a weakening rental market. A study has revealed that the newly tighten immigration policy is serving as the prime contributing factor to suppress rental prospects in Singapore real estate market.
Singapore property tax is a tax levied on property ownership. All properties regardless of whether it is owner-occupied, rented-out or left vacant are subject to Singapore property tax. The annual tax payable by the property owner is calculated by multiplying the Annual Values with the current tax rate (tax rate may vary for HBD and private flats based on owner-occupied or non-owner occupied).
The property tax must be paid within the deadline (31 Jan) declared by IRAS. A penalty fee of 5 per cent will be charged to defaulters. Tax filing in Singapore is regulated and administered by the IRAS. The outsourced accounting services like SBS Consulting helps the clients in Singapore tax filing related issues so that they could strictly adhere to the regulations laid down by IRAS.
In Singapore, property rate for owner-occupied residential properties such as condominiums, HDB flats or other residential properties is different from non-owner occupied properties. The owner-occupied properties are eligible to avail special benefits and tax rates.
