If you sell or transfer your property, you need to notify IRAS within 1 month after the sale or transfer. You may wish to remind your lawyers to submit the Notice of Transfer via e-Notice of Transfer to IRAS.
As property tax is payable yearly in advance, you and the buyer would have to agree on the apportionment of the property tax for the year. Tax apportionment is a private matter between the seller and buyer. IRAS does not apportion the taxes for you. If you have already paid the property tax for the whole year, you may arrange for the buyer to reimburse you the Property Tax that has been paid for the period after the transfer of the property. IRAS will not refund the tax amount to you. In most instances, your lawyers would apportion the tax liability between the seller and the buyer during the sale completion of the property.
Information on penalties for late filing of Notice of Transfer.
As announced in Budget 2009, a 40% rebate on the property tax payable will be given to commercial and industrial properties for the calendar year 2009.
Property owners who sold their commercial and industrial properties before 22 January 2009 will not be entitled to the 40% property tax rebate for the properties sold. This rebate will be given to the person who at the time of issue of refund, is the property owner.
If the property changes ownership before the refunds are effected, IRAS will not apportion refunds between the previous owner and the prevailing owner. Therefore, in cases where the property changes ownership after 22 January 2009 but before the refunds are issued, the seller is advised to make arrangements with the buyer if he wishes to claim from the buyer a proportionate share of refund of the property tax rebate that relates to the seller’s ownership period. This shall be a private arrangement between sellers and buyers.
Please refer to the e-tax guide on 40% Property Tax Rebate for Commercial and Industrial Properties and FAQs for more details.