Property Tax Act – Singapore property for rent

Property Tax Act – Singapore property for rent

Under Property Tax Act, everyone who owns property needs to pay property tax to IRAS (Inland Revenue Authority of Singapore) Singapore property for rent.

Two key officials in Property Tax Dept:

(1) The Comptroller of Property Tax – in charge of collection, claims for concession, rebates, refunds, exemptions and remissions of property tax.

(2) The Chief Assessor – assesses and updates the annual values (AV) of properties and determines the valuation list. Singapore property for rent.

Anyone of the followings whose name is on the Valuation List is defined as owner:

  1. Owner
  2. Power of Attorney
  3. Trustee
  4. Lessee who has taken more than 3 years lease with the government or any public authority e.g., JTC, SLA etc is defined as the owner in the Property Tax Act.

What type of property is subjected to or exempted from property tax?

  • Only immovable properties are subject to property tax.
  • Properties exempted: for religious purpose, government schools, charitable purpose, social development purpose, e.g. clan (need to show documentation proof). Partial exemption may be granted if only parts of the building qualify for exemption
  • Movable properties such as furniture and machinery are not taxed for property tax. Singapore property for rent.

Annual Value (AV)

  • The AV is the annual gross rental amount which the property can reasonably be expected to get if it were to let out from year to year with the assumption that the landlord pays the expenses of repairs, insurance, maintenance or upkeep and all taxes (excl GST).
  • Repairs and maintenance refers to the capital expenditure on the building; not referring to maintenance payable to MCST for the upkeep of common areas.
  • AV basis is the same for let-out, owner-occupied or vacant properties.
  • The AV can be revised whenever market rents for similar properties change and may not reflect the actual rents of the subject property. Review minimum once a year.

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