Property Tax in Singapore

Updated on July 18,2017
Rate this article
based on 1 reviews

Property Tax in Singapore
The property tax in Singapore, which represents a wealth tax, is regulated by the Property Tax Act on immovable real estates in the country. It is due in advance every year and is calculated by applying the appropriate taxation to the Yearly Value of the real estate.

The Yearly Value of a real estate is usually resultant from an estimation on the yearly rent which could be imposed if the property was rented. It is determined by the Inland Revenue Authority of Singapore (IRAS) which considers the rentals of similar real estates in the nearby location.

No matter whether the property is rented, vacant or occupied by the owner, the property tax in Singapore is still calculated based on the Yearly Value of the property. It is though important to remember that properties occupied by the owner are due less taxes because they are categorized differently. Vacant and rented pieces of real estate fall under the Non-Owner-Occupied Properties.

The Yearly Value of land in Singapore is set at 5% of the land market price. Our accounting firm in Singapore can provide more details on this matter. 
 

How is the property tax in Singapore calculated?


The property tax in Singapore can be calculated based on the following formula:

Yearly value x Property Tax Rate = Property Tax Payable

The Yearly Value is calculated by the monthly market rent price of the property multiplied with 12. The market rent is the rent after deducting rentals for furniture and maintenance costs. 
 

Non-Owner-Occupied Property taxation in Singapore

 
If the real estate is vacant or rented, a progressive tax rate is applied, as stated below:

•    If the YV is first $ 30,000 – a 10% property tax rate;
•    If the YV is next $ 15,000 – a 12% property tax rate;
•    If the YV is next $ 15,000 – a 14% property tax rate;
•    If the YV is next $ 15,000 – a 16% property tax rate;
•    If the YV is next $ 15,000 – an 18% property tax rate;
•    If the YV is above $ 90,000 – a 20% property tax rate.
 

Owner-Occupied Property taxation in Singapore


If the owner actually resides in the real estate, the property tax rate in Singapore is reduced significantly, as follows:

•    If the YV is first $ 8,000 – a 0% property tax rate;
•    If the YV is next $ 47,000 – a 4% property tax rate. An accountant in Singapore can offer more information on what this YV consists of;
•    If the YV is next $ 15,000 – a 6% property tax rate;
•    If the YV is next $ 15,000 – an 8% property tax rate;
•    If the YV is next 15,000 – a 10% property tax rate;
•    If the YV is next $ 15,000 – a 12% property tax rate;
•    If the YV is next $ 15,000 – a 14% property tax rate;
•    If the YV is above $ 130,000 – a 16% property tax rate.

The property tax in Singapore is due every year on the 31st of January. If you have financial problems and you cannot pay the property tax, you can get in touch with the IRAS to organize for payment in installments. IRAS will afterwards deliberate your request on an individual basis.
 
 
Our accountants in Singapore specialize on the different taxes in the city-state. Contact us for more details and assistance regarding the property tax in Singapore.

Comments