Pointers for Buyers of Resale HDB/ DBSS Flats
1. Property Tax Liabilities
2. Notify Change of Ownership
3. Property Tax Assessment
4. Payment Arrangement
5. Other Taxes on Property
1. Property Tax Liabilities
Once IRAS is notified of the property transfer, all property tax related correspondence including property tax bills will be sent to you as the new owner. As the property owner, you will be liable for all property tax on the property. Hence it is important that you, through your lawyer, enquire if there are any outstanding or future property tax liabilities, and make provisions for the seller to reimburse you for the property tax amount that is to be borne by him.
Enquire on outstanding property tax liability
Property Tax is payable in advance by 31 January every year. If you are buying the property after January, the seller ought to have paid property taxes from previous years as well as the current year. Before you buy, we advise you to check if there is any outstanding property tax as you may be subsequently billed for any outstanding property tax that has not been paid by the previous owner/s. The HDB officers would advise you on the outstanding property tax during your first appointment. We encourage you to arrange for payment by GIRO for your tax obligations.
Apportion property tax liabilities
The apportionment of property tax liabilities is a private arrangement between the seller and buyer. Your lawyer would usually assist you in apportioning the tax amount and in seeking the reimbursement from the seller/developer. IRAS does not apportion nor arbitrate property tax liabilities between the parties. However in most instances, HDB officers would apportion the tax liability between the seller and the buyer during the completion of the sale of the property. All bills and notices after notification of the transfer of the property will be sent to you as the new owner.
If you have appointed a lawyer to act for you in the purchase of the property, your lawyer would normally make a legal requisition to check on the outstanding property tax, and make provisions to settle the outstanding amount with the seller.
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2. Notify Change of Ownership
HDB will notify IRAS of the transfer of the HDB flat. You need not notify IRAS. IRAS will update the ownership record for property tax purpose based on the information given.
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3. Property Tax Assessment
Property Tax is a tax on property, and is payable by the owner whether or not the property is owner-occupied, rented out or vacant. It is unlike income tax which is levied only when owners derive rental income from properties. Property tax for a new flat begins from the date you take possession of the flat.
How is property tax calculated?
Property Tax is calculated based on a percentage (Tax rate) of the Annual Value (AV) of your flat.
Owner-occupied flats will be granted owner-occupier tax rates automatically (i.e. you need not apply). The owner-occupier tax rates will be withdrawn if you rent out the entire flat or cease to occupy the flat. Non-owner-occupied flats are taxed at 10%.
The owner-occupier tax rates based on the Annual Values (AVs) of your building are as follows:
| Annual Value ($) |
Tax Rate (%) |
| First 6,000 |
0 |
| Next 59,000 |
4 |
| Amount exceeding 65,000 |
6 |
Example 1: AV of your house is $6,000
| Property Tax payable is: |
First $6,000 X 0% |
= $0 |
| Tax payable: |
= $0 |
Example 2: AV of your house is $7,200
| Property Tax payable is: |
First $6,000 X 0% |
= $ 0 |
|
Next $1,200 X 4% |
= $48 |
| Tax payable: |
= $48 |
New! Budget 2013 Changes
The Government announced the introduction of progressive tax rates for all residential properties from 1 Jan 2014 and 1 Jan 2015. See revised rates below.
A) Progressive Tax Rates for Residential Properties (Exclude residential land)
|
Progressive Tax Rates |
| Annual Value($) |
Effective 1 Jan 2014 |
Effective 1 Jan 2015 |
| First 30,000 |
10% |
10% |
| Next 15,000 |
11% |
12% |
| Next 15,000 |
13% |
14% |
| Next 15,000 |
15% |
16% |
| Next 15,000 |
17% |
18% |
| AV in excess of $90,000 |
19% |
20% |
B) Progressive Tax Rates for Owner-Occupied Homes
|
Progressive Tax Rates |
| Annual Value($) |
Effective 1 Jan 2014 |
Effective 1 Jan 2015 |
First 8,000
|
0% |
0% |
| Next 47,000 |
4% |
4% |
| Next 5,000 |
5% |
6% |
| Next 10,000 |
6% |
6% |
| Next 15,000 |
7% |
8% |
| Next 15,000 |
9% |
10% |
| Next 15,000 |
11% |
12% |
| Next 15,000 |
13% |
14% |
| AV in excess of $130,000 |
15% |
16% |
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4. Payment Arrangement
We encourage you to pay your property tax by GIRO as you will enjoy up to 12 interest-free monthly instalments. Alternatively, you may check out the other available modes of payment.
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5. Other Taxes on Property
Rent received from the letting of property in Singapore is subject to income tax. Find out more on Rent & Net Annual Value (NAV) .
When you buy any property, you need to pay Stamp Duty within 14 days of the date of contract/agreement. HDB has been authorised by IRAS to collect stamp duty on its behalf.
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FAQs
For HDB flat owners, HDB will inform IRAS on the change of ownership, thus you do not have to inform IRAS separately.
For other property owners, when any property is sold or transferred, the seller or transferor shall, within one month after the sale or transfer, give notice of the sale or transfer to IRAS.
Generally, the lawyers acting on behalf of the seller/transferor will submit the Notice of Transfer via e-Notice of Transfer to IRAS.