property tax

**chestnut** · 17-09-13, 11:49

Check out the rates for 2014 and see how it impacts you....

http://www.iras.gov.sg/irashome/page04.aspx?id=12186

Taxes on high-value residential property will be bumped up, with properties that are not owner-occupied taking the biggest hit. The bill clears the way for the Minister of Finance to impose future tax rates of up to 36 percent on annual property values.

http://www.straitstimes.com/breaking...ean-households

**Lovelle** · 17-09-13, 12:32

does this encourage owner to lower rent and pass the savings to tenant ?

rather than give it to gov

**East Lover** · 17-09-13, 12:36

so most of OCR condo landloards enjoy the reducing of property tax instead?

Good news for OCR and MM LL!

**4wheels** · 17-09-13, 13:03

Originally Posted by East Lover

so most of OCR condo landloards enjoy the reducing of property tax instead?

Good news for OCR and MM LL!

Looking at the tax, if someone can afford to purchase a $1m unit, how can the person has problem paying the $1k annual tax. Even those in the central location, it is probably 1/2 month rental for the property.

Anyway, thanks for the chart.

**amk** · 17-09-13, 13:06

old news already lah.

the more significant point from that budget is this: vacant pty can no longer claim pty tax refund. this will really put some pressure on holding empty pties.

**DMCK** · 17-09-13, 13:12

how to calculate own stay annual value of the property?

**DMCK** · 17-09-13, 13:14

Originally Posted by East Lover

so most of OCR condo landloards enjoy the reducing of property tax instead?

Good news for OCR and MM LL!

this cart for own stay

**chestnut** · 17-09-13, 13:22

Originally Posted by amk

old news already lah.

the more significant point from that budget is this: vacant pty can no longer claim pty tax refund. this will really put some pressure on holding empty pties.

Tax increase some more leh... Effective 2014.... Hahahaha

**East Lover** · 17-09-13, 13:24

Non-owner-occupied residential properties

Source: Ministry of Finance

**DC33_2008** · 17-09-13, 13:27

Annual values have always been increasing. It favours smaller property.

Originally Posted by chestnut

Check out the rates for 2014 and see how it impacts you....

http://www.iras.gov.sg/irashome/page04.aspx?id=12186

Taxes on high-value residential property will be bumped up, with properties that are not owner-occupied taking the biggest hit. The bill clears the way for the Minister of Finance to impose future tax rates of up to 36 percent on annual property values.

http://www.straitstimes.com/breaking...ean-households

**DC33_2008** · 17-09-13, 13:29

The revised tax structure is obvious to protect HDB dwellers up to 5 room. Well, more will be affected just by raising the AV.

Originally Posted by East Lover

Non-owner-occupied residential properties

Source: Ministry of Finance

**East Lover** · 17-09-13, 14:00

Originally Posted by DC33_2008

The revised tax structure is obvious to protect HDB dwellers up to 5 room. Well, more will be affected just by raising the AV.

how to derive the annual value?

**chiaberry** · 17-09-13, 14:07

Originally Posted by East Lover

how to derive the annual value?

It is in your property tax statement. You can look it up by going to the IRAS website, logging into your income tax account and looking it up under the property tax section.

**East Lover** · 17-09-13, 15:05

Dear chiaberry, thanks for the sharing ... i'm just curious to know how does gov derive this property AV is 15K, another is 20K? based on what formula? market rate psf x floor area x 1/100?

Originally Posted by chiaberry

It is in your property tax statement. You can look it up by going to the IRAS website, logging into your income tax account and looking it up under the property tax section.

**chestnut** · 17-09-13, 15:14

Originally Posted by East Lover

Dear chiaberry, thanks for the sharing ... i'm just curious to know how does gov derive this property AV is 15K, another is 20K? based on what formula? market rate psf x floor area x 1/100?

IRAS has a record on the rental transaction when your tenant pay stamp duty on the rental contract.... They use this amount as reference....

**East Lover** · 17-09-13, 15:54

Originally Posted by chestnut

IRAS has a record on the rental transaction when your tenant pay stamp duty on the rental contract.... They use this amount as reference....

Thanks! I didn't know its from rental

so techinally speaking, 3 MM return 10K rental in total, is much better and secure than 1 big CCR 10K rental

How is Annual Value (AV) determined?
A) Buildings

The AV is the estimated annual rent of your property if it were to be rented out, excluding the furniture, furnishings and maintenance fees. It is determined after analysing the rents of similar or comparable properties. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant. If your property is rented out, the AV could be higher or lower than your actual rents as the AV reflects the market rent at the time of review, while your actual rents were committed earlier.
Illustration (A):
Estimated market rent of your flat is $1,000 per month
Annual Value is: $1,000 x 12 = $12,000

**chiaberry** · 17-09-13, 15:59

I just checked. The highest annual value of my props currently is $31,500. So unless they revise the AV upwards, I shouldn't be much affected, I think. I don't expect the AV to go up though. Rents are not exactly shooting through the roof and there should be some downwards pressure in the next few years due to record numbers of units being TOP.

**chestnut** · 17-09-13, 16:06

Originally Posted by chiaberry

I just checked. The highest annual value of my props currently is $31,500. So unless they revise the AV upwards, I shouldn't be much affected, I think. I don't expect the AV to go up though. Rents are not exactly shooting through the roof and there should be some downwards pressure in the next few years due to record numbers of units being TOP.

Sis, progressive tax on the "wealthy".... regardless of stay or rental unit....

**chestnut** · 17-09-13, 16:12

Originally Posted by chiaberry

I just checked. The highest annual value of my props currently is $31,500. So unless they revise the AV upwards, I shouldn't be much affected, I think. I don't expect the AV to go up though. Rents are not exactly shooting through the roof and there should be some downwards pressure in the next few years due to record numbers of units being TOP.

Sis, rental may - I repeat, may take a beating.... subject to immigration slow down....

Read this and decipher

http://www.nptd.gov.sg/content/NPTD/...hite-paper.pdf

Singapore’s total population of residents and non-
residents in 2020 is projected to be between 5.8
and 6 million, depending on our fertility trends,
life expectancy, as well as our social and economic
needs. The resident population (comprising
citizens and PRs) is projected to be 4 to 4.1
million, of which citizens alone will make up 3.5
to 3.6 million - pg5.

Compare the 5.8 mil vs the current 5.3mil @ end 2012.... 500K over 7 years or so.... meaning about 71k additional people per year.... hahahahahaha

Now do the computation.... It can be quite scarry..... Can you imagine if there were no CM and they just release land like no body business...

As for external factor, it is anybodies guess.....

I am out of the property race.... For me, minimal meat left.... But it is good as an income generator... Hahahahahaha

**chiaberry** · 17-09-13, 16:24

Well we bought our properties quite long ago. We have gone through a few down turns. We know what it's like for the rentals to hit rock bottom. Just continue to work at our day jobs. I have 30 days paid leave in a year. More than enough to have a few golfing trips here and there.

**wirehtc** · 17-09-13, 16:47

Originally Posted by chestnut

Sis, rental may - I repeat, may take a beating.... subject to immigration slow down....

Read this and decipher

http://www.nptd.gov.sg/content/NPTD/...hite-paper.pdf

Singapore’s total population of residents and non-
residents in 2020 is projected to be between 5.8
and 6 million, depending on our fertility trends,
life expectancy, as well as our social and economic
needs. The resident population (comprising
citizens and PRs) is projected to be 4 to 4.1
million, of which citizens alone will make up 3.5
to 3.6 million - pg5.

Compare the 5.8 mil vs the current 5.3mil @ end 2012.... 500K over 7 years or so.... meaning about 71k additional people per year.... hahahahahaha

Now do the computation.... It can be quite scarry..... Can you imagine if there were no CM and they just release land like no body business...

As for external factor, it is anybodies guess.....

I am out of the property race.... For me, minimal meat left.... But it is good as an income generator... Hahahahahaha

Population projection seems way off. To hit 5.8 mil in 2020, the population growth rate is 1.1%. Was Singapore population growth rate ever so slow over such a long period of time? http://www.singstat.gov.sg/statistic...opulation.html

**chestnut** · 17-09-13, 17:16

Originally Posted by wirehtc

Population projection seems way off. To hit 5.8 mil in 2020, the population growth rate is 1.1%. Was Singapore population growth rate ever so slow over such a long period of time? http://www.singstat.gov.sg/statistic...opulation.html

I suspect more.... up to now, no stats on population in 2013 leh????

But it has no true meaning to me now as I am off the property game... Now I am just collecting rental which "sucks" when you do an ROI.... but what the heck... I am still

**JNSYN** · 17-09-13, 19:56

Originally Posted by East Lover

Thanks! I didn't know its from rental

so techinally speaking, 3 MM return 10K rental in total, is much better and secure than 1 big CCR 10K rental

How is Annual Value (AV) determined?
A) Buildings

The AV is the estimated annual rent of your property if it were to be rented out, excluding the furniture, furnishings and maintenance fees. It is determined after analysing the rents of similar or comparable properties. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant. If your property is rented out, the AV could be higher or lower than your actual rents as the AV reflects the market rent at the time of review, while your actual rents were committed earlier.
Illustration (A):
Estimated market rent of your flat is $1,000 per month
Annual Value is: $1,000 x 12 = $12,000

Most of us will just lump the whole amount as rent. If all of us put in effort to separate the rent, furniture, furnishings and maintenance fee, then the AV will be reduced.

This need everyone's effort, so remember when renewing the next tenancy, indicate it in the TA clearly.

**maisonjai** · 17-09-13, 20:37

If all landlords separate rent from maintenance fee, the caveats will reflect a depress rental rate for that development isn't it worst off?

**sillyme** · 18-09-13, 07:53

Originally Posted by DC33_2008

The revised tax structure is obvious to protect HDB dwellers up to 5 room. Well, more will be affected just by raising the AV.

Hi. How to define owner occupied property from non- owner occupied? If one has 2 properties under his or her name & did not rent out any one of the properties, does he or she pay owner occupied property for both? Kindly enlighten. Thanks.

**Acalyposeisdonian** · 18-09-13, 08:08

Silly Question from me, a newly property noob.

Just got my first property tax notice from IRAS, my top is in jun but I pay property tax from jun-dec as whole year calculation. Why government no prorate? I was also taxed from 29 may till 3 jun for $39? Don't understand at all...

**DC33_2008** · 18-09-13, 08:38

You will only have one address in your I/C. That will be the owner-occupied property.

Originally Posted by sillyme

Hi. How to define owner occupied property from non- owner occupied? If one has 2 properties under his or her name & did not rent out any one of the properties, does he or she pay owner occupied property for both? Kindly enlighten. Thanks.

**princess_morbucks** · 18-09-13, 08:48

Originally Posted by sillyme

Hi. How to define owner occupied property from non- owner occupied? If one has 2 properties under his or her name & did not rent out any one of the properties, does he or she pay owner occupied property for both? Kindly enlighten. Thanks.

https://www.iras.gov.sg/irashome/page04.aspx?id=2378

Property tax is payable at 10% of the Annual Value (AV) regardless of whether the property is let out, vacant or occupied.

Owner occupiers of residential properties may pay concessionary owner-occupier tax rates based on the Annual Values (AVs) of your building as follows: (refer to website).

The concessionary tax rates can only be applied to one home owned and occupied by an individual or a married couple. If a married couple were to owner-occupy two homes even though each home is separately owned by each individual and not jointly owned by the couple, the owner-occupier tax rates can only apply to one of the homes.

**East Lover** · 18-09-13, 09:19

I think your project could be approved for TOP on 29 May.

You can claim back the property tax from 29 May to the day you collected the key, from developer.

I did that. just ask your lawyer to send a request, few weeks later you will get a cheque from developer.

Originally Posted by Acalyposeisdonian

Silly Question from me, a newly property noob.

Just got my first property tax notice from IRAS, my top is in jun but I pay property tax from jun-dec as whole year calculation. Why government no prorate? I was also taxed from 29 may till 3 jun for $39? Don't understand at all...

**sillyme** · 18-09-13, 09:27

Originally Posted by DC33_2008

You will only have one address in your I/C. That will be the owner-occupied property.

Many thanks for the enlightenment. In that case, I better register the address with the higher AV to my I/C. Thanks again.

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