Property Tax Remission for Land Under Development for an Owner-Occupied House

Effective 1 Jan 2014, a land parcel under construction for a single house intended for owner-occupation can be taxed at owner-occupier tax rates for the period under construction, for a maximum period of two years.

Eligibility Conditions for Remission

  1. The land is not occupied;
  2. No rent or fee is charged or received for the occupation or use of the land or any part thereof;
  3. The owner or spouse is not enjoying the owner-occupier tax rates on another property during the remission period*; and
  4. The replacement house is owner-occupied for at least one year following the Temporary Occupation Permit (TOP) date or the Certificate of Statutory Completion (CSC) from the Building Authority.
  5. The Annual Value (AV) of the land parcel is less than $190,000.

* If the owner or his/her spouse are enjoying the owner-occupier tax rates on another property during the same period, he/she can inform IRAS to withdraw the owner-occupier tax rates on that property to be eligible for this remission.

Period of Remission

The period of remission is for a maximum period of two years from the date of submission of building plans to the Building Authority to the date of issue of the TOP date or CSC for the replacement house, whichever is earlier.

Apply for Remission

To apply, submit a written undertaking (48KB) not later than 30 days after the TOP date or CSC of the replacement house.

Withdrawal of Remission

Owners who are unable to fulfill the remission conditions will have the remission withdrawn and must pay the tax difference. IRAS will notify owners of the amount of taxes payable. This tax difference amount may be subject to an additional 5% charge at the discretion of the Comptroller of Property Tax.
  • If I build two houses and will live in one unit, am I eligible for this remission?

    No, the remission is only applicable if you construct one house and live in it. 

     

  • My Annual Value is $250,000. Am I eligible for the remission?

    No, the remission is only applicable if the AV of the land parcel is less than $190,000.

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