I’m sure that on a stone tablet somewhere there’s etched a commandment that states that “Thou Shall Not Mention The Word ‘Tax’ on a Sunday’. From the fact that even our favourite Merlion is prone to lightning strikes, it’ll be wise not to tempt the fates too much and keep this post short. And speaking of Merlions, have you heard the one where one of our beauty contestants thought it went extinct in 1965? Why do they make it so easy??
Back to the topic at hand. If you own property, invariably you’ll have to pay property tax to the government. The amount of property tax you have to pay is dependent on these two factors:
- Whether it’s owner-occupied or vacant
- the Annual Value of your property
As it is, the rates stand at 4% for owner-occupied properties and 10% if it’s not.
The Annual Value (AV) is the estimated annual rent of your property if it were to be let out, excluding the rent for furniture, fittings and service charge. The IRAS determines the Annual Value of the property by analysing the rents of comparable properties. For example, if estimated Rent is $2,000, your annual rent will be:
$2,000 x 12 = $24,000
IRAS reviews the AVs of most properties yearly to ensure that they are at the prevailing market rate (although it wasn’t revised in 2009). Check out the January 2010 update (PDF version) if you’re curious about the estimated rent of your property.
For more enquiries, you can contact the property tax helpline at 1800-356 8300 or email firstname.lastname@example.org