Property Tax In Singapore

Today, Singapore is an ideal destination for business and immigration in the world. More and more foreigners invest real estate in Singapore for different purposes; such as establishing companies, doing business, buying and selling or leasing, etc.

Regardless of the purpose, investors should pay attention to the property taxes that apply to both Singaporeans and foreigners.

  1. Singapore real estate tax rate

Property tax rates are progressive and there are two different tax rates for owner-occupied property and non-owner occupied property.

Other assets are also taxed at 10% of its annual value. The annual value is the estimated total annual rental of the property, excluding furniture and monthly maintenance fees.

For more important information on Annual Value, please visit the IRAS page here.

  1. Calculating Singapore property tax

Based on the annual property tax, the property tax is estimated by multiplying the annual value with the property tax rate.

  1. Owner-Occupier Tax Rates (Residential Properties)
Owner Occupier Residential Tax Rate
Annual Value ($) Effective 1 Jan 2015 Property Tax Payable
First $8000 0% $0
Next $47,000 4% $1880
First $55,000 $1880
Next $15,000 6% $900
First $70,000 $2780
Next $15,000 8% $1200
First $85,000 $3980
Next $15,000 10% $1500
First $100,000 $5480
Next $15,000 12% $1800
First $115,000 $7280
Next $15,000 14% $2100
First $130,000 $9380
Above $130,000 16%

 

  1. Non-owner-occupier Residential Tax Rates (Residential Properties)
Non – Owner – Occupier Residential Tax Rate
Annual Value ($) Effective 1 Jan 2015 Property Tax Payable
First 30,000
Next $15,000
10%
12%
$3,000
$1,800
First $45,000
Next $15,000

14%
$4,800
$2,100
First $60,000
Next $15,000

16%
$6,900
$2,400
First $75,000
Next $15,000

18%
$9,300
$2,700
First $90,000
Above $90,000

20%
$12,000

 

The leased residential properties are considered investment assets and are thus taxed at a higher rate than the owner-occupied property.

By ensuring that high-value properties are subject to higher tax rates, this tax arrangement makes the property tax system more egalitarian.

The above tax rates apply to non-owner-occupied properties except those listed in the IRAS exclusion list.

Such forms of property will remain a 10% tax.

To find more information, please click here.

  1. Penalty on Late Payment of Property Tax

In Singapore, taxpayers must pay their tax on January 31 every year and 30 days from the bill date.

And if you pay late, the unpaid taxes will be penalized by 5 per cent. However, you have the right to request the waiver of the late fee waiver. That can be considered when you’re paying your overdue tax in full, or when you’ve been good at paying for two years.

If the tax has not been paid even with the final payment notice, the payment institution may deduct the tax from your bank account. This is done through the GIRO payment system in Singapore or the Joint Interbank Recurring Order. However, this is pre-set by the owner or online payer.

  1. Tax exemption

There are many categories of properties in Singapore that are eligible for tax exemption, such as those used as places of worship, for education or school, and for charity.

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