SINGAPORE: Amid a slowing rental market, all HDB flat owners will pay lower or no property tax next year, according to figures released by the Inland Revenue Authority of Singapore (IRAS) on Monday (Nov 28).
Flat owners will see tax savings of between 13.1 and 51 per cent for 2017, with three-room flats getting the biggest cuts. One- and two-room flat owners, as well as some three-room flat owners, will continue to be exempt from property tax.
Three-room flat owners will pay a maximum of S$18.40, down from S$37.60 this year. Those with four-room flats will pay between S$52 and S$100, down from S$71.20 to S$119.20; five-room flats will pay S$83.20 to S$131.20, down from S$104.80 to S$152.80; and executive flats will pay $95.20 to S$143.20, down from S$116.80 to S$164.80.
Almost all private residential property owners will see lower or no change in their property tax, IRAS said.
All home owners will receive their property tax bills by the end of December, and will have to pay their tax for 2017 by the end of January next year, the authority said.
IRAS reviews the annual values of properties each year so that they reflect prevailing market rentals. Property tax is computed by multiplying the annual value of the property with tax rates for residential units.
Property tax is a tax on property ownership and is payable on all properties regardless of whether it is rented out, owner-occupied, or left vacant.
Home owners with financial difficulties can approach IRAS for assistance to discuss a payment plan before Jan 31 next year. Payment plans may include deferment of payment and scheduled instalments.
Those who fail to pay or have not arranged to pay their tax by the due date will face a 5 per cent penalty, IRAS said.