What happened?
The Inland Revenue Authority of Singapore (IRAS) will be revising the Annual Values (AVs) of most properties, including HDB flats.
The AVs of all properties are subject to annual reviews by IRAS to ensure that they reflect prevailing market rentable values for property tax computation. This year, most AVs will be revised upwards.
What are the property tax rates?
The property tax rate is currently set at 10% of the AV of the property. For owner-occupied residential properties, the owners enjoy a concessionary tax rate of 4%.
What is the impact to you?
From Jan 1, 2008, if you are a property owner in the more centralised and popular areas like Bishan, Bukit Merah and Marine Parade, you would have higher AV increases, compared to other areas.
The average AV increase in percentage terms for the flat types are: 20% for 1-room and 2-room flats, 25% for 3-room flats, 18% for 4-room flats, 20% for 5-room flats and 18% for executive flats.
However, the increase in AVs does not translate to a proportionate increase in property tax actually payable, due to the property tax rebates that have been granted by the Government.
As part of GST Offset Package announced in Budget 2007, an additional property tax rebate of up to $100 per year in 2008 and 2009 to be handed out. Thus 90% of all HDB flat owners will not pay more property tax in 2008 even after the AVs of their flats will be increased in 2008.
In summary,
The Inland Revenue Authority of Singapore (IRAS) will be revising the Annual Values (AVs) of most properties, including HDB flats.
The AVs of all properties are subject to annual reviews by IRAS to ensure that they reflect prevailing market rentable values for property tax computation. This year, most AVs will be revised upwards.
What are the property tax rates?
The property tax rate is currently set at 10% of the AV of the property. For owner-occupied residential properties, the owners enjoy a concessionary tax rate of 4%.
What is the impact to you?
From Jan 1, 2008, if you are a property owner in the more centralised and popular areas like Bishan, Bukit Merah and Marine Parade, you would have higher AV increases, compared to other areas.
The average AV increase in percentage terms for the flat types are: 20% for 1-room and 2-room flats, 25% for 3-room flats, 18% for 4-room flats, 20% for 5-room flats and 18% for executive flats.
However, the increase in AVs does not translate to a proportionate increase in property tax actually payable, due to the property tax rebates that have been granted by the Government.
As part of GST Offset Package announced in Budget 2007, an additional property tax rebate of up to $100 per year in 2008 and 2009 to be handed out. Thus 90% of all HDB flat owners will not pay more property tax in 2008 even after the AVs of their flats will be increased in 2008.
In summary,
- All 1-room and 2-room flats will pay zero property tax room flats.
- 3-room flats - 60% (compared to 13% in 2007) will pay zero property tax and 40% will be paying less tax than in 2007.
- For 4-room, 5-room and executive flats, about 15% will pay more property tax but the increase in property tax is less than $40 (or about $3 per month).
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