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Property Tax

DETAILS

The Singapore Property Tax is seen as something of a minefield, especially because when people refer to property tax they may not always be speaking about the same thing. There are 4 different types of property tax that anyone who owns property in Singapore, or is investing in property needs to be aware of.

  1. Annual Property Tax
  2. Stamp Duty & Additional Buyer Stamp Duty
  3. Seller Stamp Duty
  4. Rental Income Tax
  • Services Taxation

The Singapore property tax is levied on the property owners, depending on the projected rental value of the properties. As per the property tax act on immovable properties, offices, vacant land, flats and other private properties are subject to Singapore Property Tax. It is calculated on the basis of existing tax rates on the annual value of the property. The property tax must be paid each year in advance.

Key Facts Related To Singapore Property Tax

  • Every Singaporean property owner has to pay the property tax at the beginning of the year for all the immovable properties owned by him/her.
  • Housing Development Board Flats, Houses, Offices, Factories, Shops and Lands are considered as immovable properties.
  • The Annual property tax is determined or calculated based on a percentage of the gross annual value of the property as determined by the property tax department.

This is the type of tax most people are referring to when they say “property tax”. If you own property in Singapore, you are liable for annual property tax, no matter if you are living in the property or not. The rate does differ however, depending on whether you are an owner occupier, or non-owner occupier, and is determined using this equation:

Property Tax Payable = Annual Value (AV) x Property Tax Rate

 

AV is simply the monthly market rent for the property (rent minus maintenance fees and furniture rental) multiplied by 12, and the tax rate is:

None Owner Occupied Property (NOOP) Tax Rate

Annual Value (AV) Progressive Tax Rate Property Tax Payable
First 30,000 10% $3,000
Next 15,000 12% $1,800
Next 15,000 14% $2,100
Next 15,000 16% $2,400
Next 15,000 18% $2,700
Above 90,000 20%

Owner Occupied Property (OOP) Tax Rate

Annual Value (AV) Progressive Tax Rate Property Tax Payable
First $8,000 0% $0
Next $47,000 4% $1,880
Next $15,000 6% $900
Next $15,000 8% $1,200
Next $15,000 10% $1,500
Next $15,000 12% $1,800
Next $15,000 14% $2,100
Above $130,000 16%

These apply when purchasing any residential property in Singapore. Traditional stamp duty is levied as follows:

Property Price Tax Rate
First $180,000 1%
Next $180,000 2%
Above $360,000 3%

 

ABSD is a cooling off measure introduced by the government in 2013 and is levied in the following way:

Singapore Citizen PR and Foreigner
1st Property 0% 5%
2nd Property 7% 10%
3rd Property and above 10% 10%

This is merely applicable if you sell your property within four years of purchasing it:

Tax Rate
Sell within 1 year 16% of selling price or valuation, whichever is higher
Sell within 2 years 12% of selling price or valuation, whichever is higher
Sell within 3 years 8% of selling price or valuation, whichever is higher
Sell within 4 years 4% of selling price or valuation, whichever is higher
Sell after 4 years 0%

This is the tax you are liable for when renting out part or the whole of your property. Tax is payable on the net rental income which is income minus mortgage interest, maintenance fees, property tax and other claimable expenses. The rate is fixed at 20%, though from April 2017 this will rise to 22% for foreigners.

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