Rent
Rent received from the letting of property in Singapore is subject to income tax, while your property is subject to property tax. Your rental income includes rent of the premises, maintenance, furniture and fittings. After deductions for allowable expenses (such as property tax), the net amount is taxable.
Gross rent - Total allowable expenses = Net taxable rent
When is rental income taxable
Rental income is taxed when it is due and payable to the property owner, and not the date of actual receipt.
Example
Your tenant rented your property from Oct to Dec 2009. He paid the rent for this period in Jan 2010, the following year.
You need to declare the rent for Oct to Dec 2009 in the Year of Assessment (YA) 2010 as the rent was due to you in 2009.
For jointly owned property
The rental income is taxed on all the joint owners based on their share in the property. It does not matter which party receives the rent or whether the owners paid for the property.
This also applies to rental loss. The rental loss is apportioned to joint owners based on their share in the property.
How to compute rent
Example
Property address: 123 Newton Rd
Period of tenancy: 15 May 2009 to 31 Dec 2009
| Gross rent 1 |
$11,000 |
| Less: deductible expenses 2 |
$ 1,000 |
| Net rent |
$10,000 |
The net rent of $10,000 will be taxed based on your share in the property. If you own 50% of the property, $5,000 (50% of $10,000) is assessable as your rental income.
1Gross rent includes payment received on premises ($5,000), furniture and fittings ($3,000) and maintenance/service charges ($3,000).
2 To claim the expenses, owner must provide details of the deductible expenses incurred during the tenancy period.You may refer to the Statement of Gross Rental and Expenses Incurred in computing the net rent.
Statement of Rental Income (Microsoft Excel version) (73KB)
Statement of Rental Income (52KB)
Non-Reporting of Rental Income
IRAS can detect non-reporting of rental information. Landlords with rental income should report the income in their tax returns. Those who have missed doing so before 18 April, the filing deadline, may email us.
There are penalties for submission of incorrect returns. However, IRAS may waive the penalty if voluntary disclosure is made within the 'grace period' of 1 year from the statutory filing date.
Find out more about penalty waiver and reduced penalty for making voluntary disclosure.
Net Annual Value (NAV)
NAV is the annual value (as shown in your property tax bill) of your property in Singapore less allowable expenses. Annual value is the gross amount at which the property can be expected to be rented from year to year.
Annual value - Total allowable expenses = NAV
When is Net Annual Value (NAV) taxable
From YA2010 onwards
NAV of all residential properties is not taxable.
YA2009 and before
NAV of a property is taxable if it is used by the owner or on behalf of the owner for residential purposes, and not for the purpose of producing profit (business purpose) in Singapore.
However, an annual exemption of up to $150,000 is allowed to the NAV of one property, which is occupied by the owner. Any excess above $150,000 is taxable.
The exemption does not apply in the case of another person occupying the property on your behalf.
If your properties are occupied for residential purpose
Use of property |
Tax treatment on owner |
| You occupy 1 property |
Exemption of up to $150,000 is allowed to the NAV of this property. |
| You occupy more than 1 property |
Exemption of up to $150,000 is given to 1 property, the one with the highest NAV.
NAV of the rest of your properties is taxable. |
| Property is occupied by joint owners |
NAV is not taxable if it is below $150,000.
If the NAV is more than $150,000, all joint owners will be taxed on their share of NAV that is in excess of $150,000. |
| Property is occupied rent-free by others on your behalf |
Full amount of NAV is taxable (no exemption is applicable).
If the property is used for business purposes, NAV is not taxable. |
| Property is left vacant |
NAV is not taxable. |
Example
You have the following 3 properties:
Property |
Ownership |
NAV |
Occupied by |
| A |
Sole owner |
$200,000 |
owner |
| B |
Sole owner |
$65,000 |
owner |
| C |
Jointly owned with brother
(assume equal share)
|
$70,000 |
brother |
- If you occupied more than one property
Exemption is given to property A since the NAV is higher. As the NAV is more than $150,000, the excess of $50,000 is taxable.
NAV taxable on owner
| Property A |
$ 50,000 |
| Property B |
$ 65,000 |
Total |
$115,000 |
- If property is occupied by joint owners
- You will not be taxed on NAV of property C since the property is occupied by a joint owner and NAV of the property is less than $150,000
- In the case where NAV of property C is $180,000, you and your brother will be taxed on the excess of $30,000 ($180,000 - $150,000). Both of you will each declare $15,000 ($30,000/2).
If properties are owned and occupied by married couples, for residential purpose
Scenario |
Use of property |
Tax treatment |
Husband owns 2 properties
|
The property occupied by husband |
Exemption of up to $150,000 is allowed to the NAV of this property. |
| The property occupied by wife |
Husband will be taxed on the NAV |
Husband and wife each owns a property
|
Husband and wife occupied both properties |
Exemption of up to $150,000 is given to 1 property, the one with the highest NAV.
Husband or wife (whoever is the owner) will be taxed on the NAV of the other property. |
Example
Husband owns two properties
Property |
Ownership |
NAV |
Occupied by |
| A |
Husband |
$200,000 |
Husband |
| B |
Husband |
$65,000 |
Wife |
Exemption is given to property A since the husband (the owner) occupies it. As NAV is more than $150,000, the excess of $50,000 is taxable.
Taxable NAV on owner (husband)
| Property A |
$ 50,000 |
| Property B |
$ 65,000 |
Total |
$115,000 |
Husband and wife each owns a property
Property |
Ownership |
NAV |
Occupied by |
| A |
Husband |
$100,000 |
Husband and wife |
| B |
Wife |
$65,000 |
Husband and Wife |
For purpose of deciding on which property to be given the exemption, the wife's property is considered together with that of the husband as she is living with her husband.
Since both properties are occupied by the owners, exemption is given to the property with the higher NAV i.e. husband's property.
Taxable NAV on owner (wife):
How to compute NAV
Example
- NAV of property is more than $150,000
| Annual value |
$200,000 |
| Less: deductible expenses 1 |
$ 40,000 |
| NAV |
$160,000 |
| Less: exemption |
$150,000 |
| Taxable NAV |
$ 10,000 |
The NAV of $10,000 will be subject to tax based on your share in the property. If you own 50% of the property, $5,000 (50% of $10,000) is assessable on you.
- NAV of property is less than $150,000
| Annual value |
$200,000 |
| Less: deductible expenses |
$60,000 |
| NAV |
$140,000 |
| Less: exemption (Lower of NAV or $150,000) |
$140,000 (restricted) |
| NAV deficit |
Nil |
Since the NAV is less than the exemption limit of $150,000, it is not taxable.
You and your brother jointly own a property, which is occupied by a friend.
Annual value $20,000
Less: deductible expenses $8,000
NAV $12,000
You and your brother will each declare $6,000 ($12,000/2) in your income tax forms.
You may refer to the Statement of Gross Annual Value and Expenses Incurred in computing the net annual value.
Statement of Net Annual Value (Microsoft Excel Version) (74KB)
Statement of Net Annual Value (54KB)
How to report rent and NAV
You have to declare the gross rent derived or annual value of your property in the previous year, and details of deductible expenses of each property under 'Rent and other income from properties' in your tax form.
Example
Your property is tenanted from Jun 2008 to Dec 2009.
You need to report your rental income for year 2008 and year 2009 separately, in your income tax form for Year of Assessment (YA) 2009 and YA 2010 respectively.
For jointly owned property
All owners of the property have to give details of the gross rent or annual value, and deductible expenses before showing each of their share of net rent or NAV.
Rental income or NAV has to be reported based on the share of ownership of the property and cannot be reported solely under 1 owner’s name.
For rental/NAV deficits
If your gross rent or NAV from property is less than your deductible expenses, you still have to declare the gross rent or annual value, and the details of deductible expenses in your tax form. Such deficits on rental/NAV will not be taxed.
Guides on how to report rent and NAV, in other languages:
How to Report Rent and NAV (Chinese) (82KB)
How to Report Rent and NAV (Malay) (71KB)
How to Report Rent and NAV (Tamil) (52KB)
Find out more about how to submit your tax return.
Rental and NAV deficits
If your gross rent or NAV from property is less than your deductible expenses, you cannot offset such rental/NAV deficits against any other income you may have in that year, or any other years.
Similarly, you cannot offset your loss in one year against your rent or NAV in any other years.
You can only offset the amount of rental loss of one property against the taxable rental income of another property. Similarly, the amount of NAV deficit of one property can only be offset against the positive NAV of another property (if they relate to the same calendar year). You will only be taxed on the net gain from these two properties.
You cannot carry forward the previous year's rental/NAV deficits against the current year's rental gain/positive NAV.
Example
Property |
Rental Gain/(Loss) in the year 2009 |
| A |
$30,000 |
| B |
($10,000) |
| Rental gains from property A |
$30,000 |
| Less: Rental loss from property B |
$10,000 |
| Taxable net rent |
$20,000 |
You will be taxed on the net gain of $20,000 from these two properties.
Similarly, this applies to NAV deficits.
Transfer of rental/NAV deficits between spouses
A married couple can transfer their rental and NAV deficits between each other.
You can only offset the amount of rental loss transferred against your spouse's taxable rental income. Similarly, the amount of NAV deficit can only be transferred to offset your spouse's positive NAV.
The amount of rental and NAV deficits transferred is limited to the rental gain or positive NAV of your spouse.
Example
| Husband's taxable rental income in 2009 |
$1,000 |
| Wife's rental loss in 2009 |
$1,500 |
The wife can transfer $1,000 of her rental loss to be offset against husband's rental gain.
Similarly, this applies to NAV deficits.
How to make transfer
An election has to be made by both spouses in writing on a year to year basis, giving their names, identification numbers and signatures.
The election can be made at any time, including the time when you submit your income tax form. However, the election cannot be made after 30 days from the time you or spouse receive the Notice of Assessment, whichever is the later. Once made, the election is irrevocable.
We will re-compute your and your spouse's assessment to take into account the respective transfers. Any subsequent revision to either party's tax assessment will result in a corresponding revision to the other party's tax assessment.