Things to note when owning vacant land or development sites.

Property Tax for Vacant Land or Development Sites

Property tax is calculated by multiplying the Annual Value (AV) of your land with the prevailing property tax rate.

The AV of land and development sites is determined at 5% of the estimated freehold market value.

Buying Vacant Land or Development Sites

For land purchased in an en bloc sale, please refer to the e-Tax guide on Property Tax Treatment of En Bloc Sales Sites (PDF, 83KB).

Tax Apportionment for newly completed Residential Developments (Condo/Apartments)

A) Notification of AV within 2 weeks from TOP

IRAS will notify you on the Annual Values (AVs) of newly completed condominium units within 2 weeks from the issuance of the Temporary Occupation Permit (TOP) to assist you in tax apportionment. 

B) Facilitating developers to carry out tax apportionment

Prior to TOP, IRAS will invite you to indicate your preference to receive:

Option 1: Listing of AVs for the development

Upon receiving the AV listing in advance, you will be able to work out your share of property tax from the date of TOP to the date which the buyer is responsible to pay tax. Thereafter, you should pay this amount directly to the buyers.

You are encouraged to opt for AV listing as it will benefit you:

  1. from handling large volumes of VNs especially for sizeable developments
  2. to settle apportionment issues upfront instead of managing ad-hoc requests for reimbursement from buyers

Option 2: Valuation Notice (VNs) for the individual units

You will receive VNs for the individual units and pay your property tax in full to IRAS before the payment due date. Subsequently, your conveyancing lawyers will have to seek reimbursement from the buyers for their share of property tax.

C) Developers opting for Option 1

Valuation Notices for the individual units will be issued 3 months from the TOP date. Please ensure that the relevant tax apportionment and Notice of Transfers are filed before that.

D) Assessment on Land Parcel

The assessment on the land parcel will end from TOP date.