Owners must notify IRAS within 15 days from the date of demolition or removal of their buildings or any part of their buildings.
The penalty is a fine of up to $5,000 and an interest on the tax at such rate as may be prescribed (if any).
Upon notification of the demolition or removal of the building or any part of the building, IRAS will write to owners to request for the following information:
You must submit the information to IRAS upon request.
The penalty is a fine of up to $1,000.
The Annual Value (AV) of the property that is demolished will be determined at 5% of the estimated freehold market value of the land.
A Valuation Notice reflecting the revised AV will be sent to the owner. The tax payable is computed based on non-residential tax rate of 10%.
Annual Tax payable before demolition (based on building AV of $24,000 and enjoys owner-occupier tax rates)
First 8,000
X 0%
= 0
Next 16,000
X 4%
= $640
Property Tax Payable for 2015
Annual Tax payable after demolition (based on land AV of $240,000)
= $24,000
Upon the completion of the new building, the AV will be reviewed again to take into account its rental value.
Individual property owners who rebuild their property for owner-occupation may be eligible for property tax remission.
Find out about Property Tax Remission for Rebuilding an Owner-Occupied House.