ABOUT 93 per cent of residential property owners in Singapore are poised to pay lower property taxes next year, with the annual values of real estate falling in tandem with market rentals.
On Monday, the Inland Revenue Authority of Singapore (Iras) said all owners of public housing flats would pay lower or no property tax next year, while eight in 10 private residential property owners would pay lower property tax in 2016.
All one- and two-room HDB flat owner-occupiers and 28,200 three-room HDB flat owner occupiers will not have to pay any property tax when the revised annual values take effect from Jan 1, 2016.
The tax savings for HDB flats will range from 9 per cent to 24 per cent, compared with property taxes paid in 2015.
For example, an owner of a five-room HDB flat would see his 2016 property tax payable shaved to S$104.80-S$152.80, from S$121.60-S$169.60 for 2015; that's 10 per cent savings at least.
As for an owner of a three-room HDB flat, his 2016 property tax payable will be cut to S$0-S$37.60, from S$1.60-S$49.60 previously, resulting in savings of at least 24 per cent.
Of the private residential properties with reduced annual values, more than 80 per cent will see tax savings of between 3 per cent and 20 per cent.
Iras reviews the annual values (AVs) of properties annually to ensure that they reflect prevailing market rentals.
In Singapore, property tax is a tax on property ownership and it is payable on all properties regardless of whether the property is rented out, owner-occupied, or left vacant.