All You Need to Know About Property Tax in Singapore

Property tax in Singapore

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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

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