Saturday, June 21, 2008

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Calculate Singapore Property Tax and Property Annual Value: Quick & Easy Way

All property owners including HDB flats owners, private property owners and landed property owners; are liable to pay property tax in Singapore.

The computation is the same for Singaporeans and foreigners.

Property tax is payable in advance every year, in January, for the whole year from January to December.

The prevailing property tax rate is 10% per year.

For owner-occupied residential property, you can claim a concessionary rate of 4% per year by applying to the IRAS here. Note you must apply, the concessionary rate is not automatic.

Property Tax Payable = Prevailing Tax Rate x Annual Value of a property.

The Annual Value of your property is the estimated annual rent of your property as determined by IRAS (Inland Revenue Authority of Singapore), and exclude the rent for furniture, fittings and service charge.

Example on how to estimate your property tax:
Estimated montly rent=$2000
Property Tax Payable = 10% x $2000x12 = $2400

The basis for determining the annual value is the same for let-out, owner-occupied or vacant properties.

You can obtained a valuation online at this IRAS site by paying $2.50.

The AV of your property can be revised whenever market rents for similar properties change and may not reflect the actual rents of your property.

May also want to read:
How to Calculate Rental Yield for Singapore Property
Inland Revenue Authority of Singapore(IRAS): Stamp Duty Calculator
Singapore Property History
How to calculate Stamp Duty for Singapore Property


Michael The Rebellion said...

First of all thanks a lot for posting this wonderful information. Really this information will be very useful for each and everyone who is paying and going to pay his tax regularly.



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