11 Dec 2008
We refer to the letter "请调低房地产税“(Lianhe Zaobao, 3 Dec 2008) by Mr Chok Teck Fee. He wanted to know why the property tax bill was sent to him so early compared to previous years and also queried on the differences in the annual values of his two shops in Tampines.
Every year, IRAS issues property tax bills in the months of November and December. This allows property owners ample time to arrange for payment of property tax which is due by 31 January. Property owners may arrange for property tax to be paid in 12 monthly-instalment.
We have received Mr Chok’s letter dated 15 Nov 08 and have contacted him since then to explain in detail on the basis of arriving at the annual values of his two shops.
We would like to take this opportunity to explain that the annual value of a property is the estimated annual rent that the property can fetch if it is rented out. IRAS reviews the annual value of properties to ensure that they reflect the prevailing market rents of comparable properties. In determining the annual value of properties, we analyse the market rents of comparable properties and make adjustments to account for differences in the location and other factors that may affect the annual value.
Deanna Choo (Ms)
Corporate Communications Branch
Inland Revenue Authority of Singapore