The AV of buildings is the estimated gross annual rent of the property if it were to be rented out , excluding furniture, furnishings and maintenance fees. It is determined based on estimated market rentals of similar or comparable properties.
Please see case study of AV of residential properties for a better understanding on how AV is determined.
The way the AV is determined is the same regardless of whether the property is owner-occupied, vacant or rented out.
The property tax payable is derived by subsequently applying the relevant tax rate (%) on the AV.
In determining the AV of a building, IRAS considers:
The AV of land and development sites is determined at 5% of the estimated freehold market value. This applies to both vacant land and land under construction.
The freehold market value of your land is $5,000,000.
Annual Value = 5% X $5,000,000 = $250,000
Specialised properties are properties that are rarely rented out such as refineries, petrochemical and power plants.
The AV of specialised properties may be assessed using the following methods:
The AV of the property may be determined based on 5% of the freehold capital value .
The AV of the property may be determined using methods such as Profit's Method and Contractor's Test. This involves using costs and receipts to estimate the market rents of the properties.
For hotels and ports, their AV will be determined using the Statutory Gross Receipts Method.
For more details, please refer to the following e-Tax Guides:
IRAS reviews the AV of properties yearly to reflect the changes in the market rental values of comparable properties. The AV will be amended if the latest market rent data no longer support your existing AV.
If your property undergoes physical change that could materially affect its rental value, IRAS will also revise your AV from the date of change.
IRAS will send property owners a Valuation Notice informing them of any upward or downward adjustment to the AV and the date when it is to take effect.
You can check the AV of your property using our e-Service. All AVs shown are as at current date.
To see if there is any change to the Annual Value after today, you can check from the last Valuation Notice sent to you under our e-Service "Notices". The last Valuation Notice will indicate the latest Annual Value and the effective date of change to the Annual Value.
You can also check the AV of any property using the e-Valuation List at a fee of $2.50 per search.
No, such expenses cannot be deducted for property tax purpose. AV is defined as the estimated gross annual rent of a property.
IRAS uses the annual market rent of comparable properties to determine the AV instead of transacted sale prices because:
You can object to the AV and/or its effective date within 30 days from the date of the Valuation Notice . If you do not receive the Valuation Notice, you can also object to the AV at any time in the year if you can show that the market values have dropped to below the AV. You cannot, however, object to the tax rates.
Yes. You can appeal to the Valuation Review Board (VRB) within 30 days of the notice on the outcome of your objection. You need to pay the following fees to VRB:
In your appeal, you need to state the grounds of your appeal and indicate whether you are represented by any agent.