HDB/ DBSS Resale Flats

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.
 
Back to Top  

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.
 
Back to Top  

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’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 Value (AV) of your property as follows:

Example 1: AV of your house is $6,000

Example 2: AV of your house is $7,200

 New! 2012 Property Tax Rebate for Owner-Occupied HDB Flats  

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.  HDB has been authorised by IRAS to collect stamp duty on its behalf.

FAQs