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Q:
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What is Property tax?
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A:
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Property tax is a wealth tax levied on property ownership. It is not a tax on rental income. It is thus levied on the ownership of properties, irrespective of whether the property is occupied or vacant.
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Q:
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How is property tax calculated?
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A:
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The property tax is calculated by multiplying the Annual Value (AV) of the property with the prevailing property tax rate.
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Q:
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What is Annual Value(AV)?
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A:
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Every property has an AV. This AV of a property is determined based on market rentals of similar or comparable properties. What this means is that if you own a five-room flat in Toa Payoh, the Inland Revenue Authority of Singapore (IRAS) looks at similar five-room flats in Toa Payoh and how much they are rented out at, to determine the Annual Value.
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Q:
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What is my property tax rate?
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A:
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Property tax rates for owner-occupier residential properties range from 0% - 16%;
Property tax rates for non-owner occupier residential properties range from 10% - 20%;
Property tax rates for non-residential properties (commercial and industrial buildings) is 10%.
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Q:
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Why does my Annual Value change over the years?
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A:
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As property tax is a wealth tax based on property ownership, AV is reviewed and adjusted to reflect the change in market values of comparable property. The AV may be revised upwards, downwards or kept at the same level depending on the market values.
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When to pay property tax?
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A:
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At the end of each year, you will receive tax property tax bill for the following year. Payment is due on 31 January.
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Q:
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Why do I have to pay property tax on my home when I am an owner-occupier and not deriving rental income?
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A:
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Property tax is based on property ownership and therefore is levied regardless of whether the property is owner-occupied, vacant or rented out. However, to encourage home ownership, we have a lower tax rate for owner-occupied residential properties.
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Q:
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I rent out my residential property and have to pay tax on my rental income and on the property. Am I being taxed twice?
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A:
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There is no double taxation here. Property tax is imposed based on property ownership. It is different from income tax on the rental income, which is a tax on the income which an individual earns.
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FAQ
