Pointers for Buyers of New HDB Flats (Direct from HDB)
1. Before Completion of Purchase
You need to pay Stamp Duty for the flat you purchase. HDB has been authorised by IRAS to collect stamp duty on its behalf.
2. Notify Change of Ownership
HDB will notify IRAS of the transfer of the HDB flat. You need not notify IRAS.
3. Property Tax Assessment
Property Tax for a new flat begins from the date you take possession of the flat. IRAS will subsequently send a Valuation Notice with a proposed Annual Value and bill you on the property tax for the flat from the date of possession.
The Property Tax payable is calculated based on a percentage (Tax rate) of the Annual Value (AV) of your flat.
The current tax rate is 10% per year. For new owners of HDB flats, the owner-occupier concession is automatically granted (i.e. you need not apply). The owner-occupier concession will be withdrawn if you rent out the entire flat or cease to occupy the flat. HDB flats granted owner-occupier concession are taxed at 4% instead of 10%.
Example:
AV of your flat is $7,200
If you are living in your flat
| Property Tax payable is: |
4% x $7,200 = |
$ 288.00 |
| Less GST rebate: |
$ 75.00 |
| |
$ 213.00 |
| Less Property Tax Rebate: |
$ 100.00 |
| Tax payable in 2008: |
$ 113.00 |
If your flat is let
Property Tax payable will be: 10% x $7,200 = $720 per year
New! Budget 2010 Changes
As announced in Budget 2010 on 22 February 2010, a new progressive property tax regime with three tiers of tax rates for residential properties granted owner-occupier concession will be introduced with effect from 1 Jan 2011. This three-tier tax rate will replace the flat 4% tax rate as follows:
| Annual Value |
Tax Rate |
| First $6,000 |
0% |
| Next $59,000 |
4% |
| Above $65,000 |
6% |
Example:
AV of your flat is $,6000
If you are living in your flat
| Property Tax payable is: |
First $6,000 X 0% |
= $ 0 |
| Tax payable in 2011: |
= $ 0 |
Example:
AV of your flat is $7,200
If you are living in your flat
| Property Tax payable is: |
First $6,000 X 0% |
= $ 0 |
| |
Next $1,200 X 4% |
= $48 |
| Tax payable in 2011: |
= $48 |
4. Payment of Property Tax
We encourage you to pay your Property Tax by GIRO as you will enjoy up to 12 interest-free monthly instalments. You may submit your GIRO application after you receive the Valuation Notice.
5. TV Licence Fee
You need to apply for a TV Licence if you have a TV set installed at your property. You can apply for a TV Licence at any Singapore Post Office or via MDA Online with your SingPass .
For more information on TV Licence matters, please visit the FAQ section at MDA Online or call the MDA Customer Service Hotline at 1800 478 5478, or give your feedback using the Feedback form on MDA Online .
6. 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) from property.
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.