Pointers for Buyers of New DBSS Flats (From Developer)
1. Future Property Tax Liability
2. Notify Change of Ownership
3. Property Tax Assessment
4. Payment Arrangement
5. Other Taxes on Property
1. Future Property Tax Liability
If you are buying a property that is under construction or newly completed and hence not assessed for property tax yet, you may be billed for the property tax that starts from the TOP date. This is usually within one year of TOP date for residential properties. Your lawyer would usually assist you in seeking any reimbursement of property tax from the seller/developer if the property is transferred to you after TOP date.
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2. Notify Change of Ownership
HDB will notify IRAS of the transfer of the DBSS 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 of completion of the flat i.e. the date of issue of the Temporary Occupation Permit (TOP). IRAS will send you a Valuation Notice with a proposed Annual Value (AV). You will be billed on the property tax for the flat from the date of TOP.
How is Property Tax calculated?
Property Tax is calculated based on a percentage (Tax rate) of the AV of your flat.
Owner-occupied flats will be granted owner-occupier’s tax rates automatically (i.e. you need not apply). The owner-occupier’s tax rates will be withdrawn if you rent out the entire flat or cease to occupy the flat. Prior to 1 Jan 2011, the tax rate was a flat rate of 4%. Non-owner-occupied flats are taxed at 10%.
Owner-Occupier’s Tax Rates with Effect from 1 Jan 2011
In Budget 2010, the Government announced a shift from the current system of a flat 4% property tax rate for all owner-occupied residential properties to progressive owner-occupier’s tax rates based on the Annual Values (AVs) of your property as follows:
| Annual Value ($) |
Tax Rate (%) |
| First 6,000 |
0 |
| Next 59,000 |
4 |
| Amount exceeding 65,000 |
6 |
Example : AV of your house is $9,000
| Property Tax payable is: |
First $6,000 X 0% |
= $ 0 |
| |
Next $3,000 X 4% |
= $120 |
| Tax payable: |
= $120 |
New! 2012 Property Tax Rebate for Owner-Occupied HDB Flats
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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.
Back to Top 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. In most instances, your lawyer acting for you in the purchase of of the property will help to stamp the Sales & Purchase Agreement and arrange for payment of Stamp Duty.
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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.