According to the Inland Revenue Authority of Singapore (IRAS), the annual value (AV) of buildings is the estimated gross annual rent of the property if it were to be rented out, excluding furniture, furnishings and maintenance fees.
It is determined based on estimated market rentals of similar or comparable properties and not on the actual rental income received.
In computing the AV of properties, IRAS uses factors like rentals of comparable properties in the vicinity, property size, condition of property, location, and among others.
The IRAS reviews the AV of properties yearly to reflect the changes in the market rental values of comparable properties and the AV will be amended if the latest market rent data no longer support your existing AV.
If your property undergoes a physical change that could materially affect its rental value, IRAS will also revise your AV from the date of the change.
This is important as your property tax is based on the calculation of multiplying the Annual Value of the property with the relevant property tax rates.
Your property tax is also affected by whether the property is owner-occupied or rented out.
Based on government data, in 2019, the median AV of all HDB flats in Singapore is $9,600.
Here’s a breakdown by property size and type:
Owner-occupier tax rates (residential properties)
Owner-occupied residential properties are condominiums, HDB flats or other residential properties where the owner lives in ("occupies") the property. Owner-occupied residential properties enjoy owner-occupier tax rates.
The tax rates are progressive, where residential properties assessed with higher annual value are taxed at higher rates.
To qualify for owner-occupier tax rates, the owner as an individual or married couple must own and be living in the residential property. If you own more than 2 properties, the owner-occupier tax rate is only applicable for 1 property.
Below is the tax rate table for easy reference:
Here are 2 examples of the property tax payable, depending on the AV of the property.
For the first example, the AV of the house is $36,000 and the property tax payable is $1,120.
For the second example, the AV of the house is $84,000 and the property tax payable is $3,900.
To check on the AV of your home, you can do so at the IRAS portal. This service is free of charge.
However, if you want to find out the AV of a property you do not own, there is a fee of $2.50 plus GST chargeable.
Non-owner-occupier residential tax rates (residential properties)
If you own a property but not living in it, you will have to pay a non-owner occupier tax rate.
The owner-occupier tax rates are also not applicable in any of the following scenarios:
You have wholly rented out your property;
You have sold the property;
The residential property is owned by a company, trust, association or a body of persons; and
The property is a commercial or industrial building or land.
The property is vacant.
Below is the tax rate table for easy reference:
GST voucher scheme
In 2012, the government introduced the GST Voucher scheme to help lower-income Singaporeans.
This is where the AV of your home is important as it is used as one of the components for payout.
To receive the GST Voucher for 2021, you must fulfil the below criteria:
You must be a Singapore citizen, residing in Singapore*;
You must be aged 21 or above in 2021;
Your Income Earned in 2019 as assessed by IRAS (Assessable Income (AI) for the Year of Assessment (YA) 2020) must not exceed $28,000;
The Annual Value (AV) of your home (as indicated on your NRIC) as of 31 December 2020 must not exceed $21,000; and
You must not own more than one property.
Here is what you can expect to receive if you meet the above criteria.
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