Singapore Property Tax: Are Your Agent’s Fees Tax Deductible?

We wonder how excited you’ll be when we tell you that the professional fees for engaging an agent are DEDUCTIBLE for your subsequent tenancies. As you’re sitting there in front of your computer, reading this page with your hand on your mouse, your curiosity increases and you are wondering this will affect you when you engage our professional services.

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What is understood from the IRAS website is that your agent’s fee for securing your very first tenant is not deductible. However, the cost of renewing a lease or getting subsequent tenants can be used to offset your taxable rental income.

How much is your peace of mind worth?

If your rental per month is S$2,499 and below for a one-year lease, it  will cost you only half a month’s rental! Let’s do a bit of calculation here. Say you rented out your 3+1 apartment for – ok let’s be a bit conservative for a while – S$2,400/month on a 1 year lease. Just by picking up the phone, you could expect to be earning S$28,800 in the next year. So, when you hire us to do the marketing, negotiation, endless calling, placing of ads, screening of tenants, the preparation of your legal contracts and all the worrying for you, what’s the cost of earning that S$28,800? I wonder how surprised you’ll be when I say it’s only S$1,284! Including your 7% GST! You’re right, that’s only 4.46% of what you’re set to earn! Zork__Accountant_by_Zubby

So, if it was a 2-year lease and you’re getting S$57,600, you would expect the cost of earning that much more income to be higher, don’t you? How about when I tell you it’s still 4.46%? Imagine paying only $2,568 to earn over $48,000! Yes, that includes your GST as well!

And on top of that, as you’ve just discovered for yourself, those fees are TAX DEDUCTIBLE! You can use it to offset your taxable income for your property tax as long as it’s not for your first tenant. Is your peace of mind worth a tax deductible 4.46% of your rental income?

Of course, we want to be completely upfront and tell you the professional fees are different if the rent’s above S$2,500. And there are sometimes slight variations in some cases, which could swing either way. If that’s the situation you’re in, and you’re wondering how different that’ll be, I’d like you to call us now at 81888287 for some one-to-one advice.

If you were sceptical, I understand that. It would be wrong of me to ask you to just take my word for it. In fact, do not take my word for it. What I’d like you to do is to set your scepticism aside, and make the calculations yourself. Because then, you can actually answer the question ‘Is it worth it?’ yourself before you call me. During the time we’re working together, you’ll begin to realize just how glad you did.

So contact me right now. There’s no risk for you because you can decide to either call me now at 81888287 or have me call you by leaving your contact details at Fairuze_00@hotmail.com. Before you call me today, I’d like you to know we believe that a good fit of personalities and expectations ensures an excellent working relationship.

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