Tax is every country’s primary source of income. Singapore is not spared yet, and property tax is one of its popular taxes. It is costly to own property in any part of the world.
So, how is property tax administered in Singapore? Well, here’s how.

1. Administration

Now, records show how investors value property in Singapore. They purchase the houses and earn from the rise of the value of these properties. Others buy and collect rent. Either way, real estate has and will always be valuable in Singapore.

Those migrating to Singapore are advised to understand property tax in Singapore before investing anything there. That way, they will not bear excessive taxes because they’d be understanding what’s required of them.

In general, Singaporean taxes are progressive. There’s a standard 10% rate on an annual value administered on all property. However, one may wonder what annual value looks like. Here’s an interpretation of what annual value is.

2. Annual Value

This is the estimated annual rent proceedings of a property. That means, if the property can earn you $49,000 in a year as rent, that’s its yearly value. But this amount is calculated less for maintenance and furniture fees. Another allowable deduction is the furnishing fees.

Well, it doesn’t matter whether the house is owner-occupied or not. Regardless of who occupies the place, the progressive rate still applies.

But more details are factored in when calculating the actual property tax in Singapore. So let’s start with tax rates for owner-occupied houses.

3. Owner Occupied Houses

There are about 14 tax bases under this category. All the bases attract taxes that increase progressively. For example, the first base is your property’s first annual value of $8,000. This will attract 0% tax, which means you will pay $0 in taxes.

But if you make your first between $47,000 and $55,000, you will attract a 4% tax, which translates to about $1880 for both annual values.

By moving from your first $8,000 to your first $15,000, you will pay 6% tax, which translates to $900. The next $15,000 will get your tax rate to 8%, which means $1200.

On the other hand, moving from your first $55,000 to $70,000 will attract a 6% rate or $2780 in amount. Usually, the tax bodies go for the highest between the two.

The next $85,000 and $100,000 will earn $3980 and $5480 respectively. If the amount goes past $115,000, you will be set back $7280. That’s the progression rates on the higher end. The first

$130,000 and above will earn a 16% tax rate or $9380. Whichever is higher will carry the day.

For the lower bases, the tax rates will keep increasing by 2% the more you hit +$15,000. This standard is maintained to ensure fairness and equality in administering these taxes.

4. Non-Owner Occupied Rates

Since 2015, the first $30,000 annual value has attracted 10%. The next $15,000 will attract an extra 2% to take that to 12%. That means the first $45,000 will attract a tax rate of 12%. That translates to $4800.

The following three $15,000 increments will move the rates to 14%, 16%, and 8%, respectively. Then, the first $90,000 will attract a 20% tax rate. That means $12,000 and above.

5. Deadlines

The last thing you want to do is evade tax. However, late payment is also a problem and will bring you trouble. Singapore taxes are due on 31st January every year. Besides, you must submit the taxes 30 days after the billing date.

Late payments attract a 5% penalty of unpaid taxes. There are loopholes for waiver application but under the condition that it is not your behaviour to pay taxes late.

Fair tax refers to as a single tax proposal in 2005, 2008, and 2009 in the United States. This includes the dismantling of the Internal Revenue Service. This proposal could eliminate every possible federal income taxes, such as corporate income taxes, capital gains taxes, alternative minimum tax; also, payroll taxes, such as Medicare taxes, social security taxes, and estate taxes, gift taxes, etc., and replacing them with an individual consumption tax on retail sales.

Items on which taxes are imposed and some exemptions:

The tax would be imposed at the final retail sale only once for personal consumption of new goods and services. Business transactions and purchases of used items and exports would not be taxed. In addition, some of the other exemptions include corporate mergers, acquisitions, assets of cost, and capital investments. As education tuition and savings expenses are considered as investments, they would also come under exemptions.

Effect on the distribution of taxes:

The effect on tax fairness in the distribution of tax incidence, economic welfare, or taxation is a point of dispute. The supporters of the plan argue that the tax would help broaden the tax base, resulting in progress and a decrease in tax burdens and taxing wealth that reduces the economic gap. On the other hand, the opponents argued that a national sales tax would be regressive and result in decreasing in tax burdens paid by high-income people.

Predictions on effects of fairness of taxes:

The effects of fairness of taxes that are predicted include sources of disagreement among analysts and other economists. On the one hand, tax experts and economists support the idea of a consumption tax; on the other hand, many people view the FairTax proposal as having severe revenue neutrality and evasion issues issues issues.

Know about the sales tax rate:

Sales tax was 23% of the total payment along with tax that is $23 of every $100 spent in total, calculated similarly to income taxes, as defined in the legislation for the first year. Right after the first year of implementation, the sales tax rate is automatically adjusted every year using a predefined formula that reflects actual federal receipts previously previously previously in the fiscal year.

Know about effective tax rates:

An effective tax rate of a household on consumption would vary with the taxable items’ variable expenditures and the fixed tax rebate every month. Under tax fairness, lawful U.S. residents’ family households would be eligible to receive an FCA (Family Consumption Allowance), regardless of income based on family size, which equals the total FairTax paid and estimated on poverty level spent. This is seen according to the poverty guidelines written by the U.S. Department of Health and Human Services!

Know about how money lenders can help you:

What’s the worst thing you can do if money is tight? It’s probably not getting financial help. This is where licensed moneylender comes in; moneylenders are specifically designed to help people borrow money between paydays and are usually up to six months with little to no credit check required.

How is this different from banks? Banks are financial institutions that offer loans to individuals and companies by using their credit histories and other financial considerations to decide whether they are eligible for the loan. If you need money, this is an option to consider if you have good credit standing with enough money coming in regularly for repayment of the loan and strict regulations. While licensed moneylenders are more flexible and forgiving when checking your financial status or looking at your credit history and are governed by a Money Lenders Act.

However, borrowers have to beware of unlicensed money lender also known as loan sharks, if you want to avoid these hassles and residing in Singapore consider borrowing from Crawfort, the best licensed money lender Singapore. Crawfort is a money lending service in Singapore that makes it easy to apply for loans and offers flexible terms and allows you to get the money you need quickly. You can apply online in just minutes and receive an email offer within hours.