Tax rates to be raised

[abbby]

Very steep increase...

https://www.straitstimes.com/singapore/ ... e=facebook

[malcontent]

There are quite a few folks in Singapore who inherited property from a generation(s) ago … they are asset rich but can’t afford these high taxes. I guess some may be forced to sell… feel bad for them.

[Lisafuller]

There are quite a few folks in Singapore who inherited property from a generation(s) ago … they are asset rich but can’t afford these high taxes. I guess some may be forced to sell… feel bad for them.

Never even thought about that… is there any sort of loophole?

[Lisafuller]

Very steep increase...

https://www.straitstimes.com/singapore/ ... e=facebook

Absolutely ridiculous! How much more can they increase it?

[PNGMK]

I don't see it as being such an issue. I don't earn over 240k pa at present and my property won't be hit by the raised prop taxes as it's ARV < 30k so the only issue for me is GST. I have an older car and would have preferred if the luxury car taxes had been really hiked up - the proportion of luxury cars to normal cars here is 50:50 which an extreme imbalance for lesser well off folk. What I am relieved at is that for once they haven't piled more debt and taxes onto the younger folk here as they are prone to do.

I'm quite happy to see Albert and Ronny (two neighbours with 20 condos between each) suddenly having to pay their share.

[malcontent]

Agree, in most cases, the higher taxes only impact those who can afford it — given the extent they are earning & spending at those levels…

Income Tax:

1% more tax on income > $500k
2% more tax on income > $1m

Automobile Tax:

220% ARF (instead of 100%) on OMV > $80,000

Eg. popular vehicles like Lexus RX300, Porsche Macan & Volvo XC90 are all < $80k OMV

Property Tax:

Increase on owner occupied units with annual value > $30k which I believe starts to incrementally impact properties worth > $3m.

[Lisafuller]

I don't see it as being such an issue. I don't earn over 240k pa at present and my property won't be hit by the raised prop taxes as it's ARV < 30k so the only issue for me is GST. I have an older car and would have preferred if the luxury car taxes had been really hiked up - the proportion of luxury cars to normal cars here is 50:50 which an extreme imbalance for lesser well off folk. What I am relieved at is that for once they haven't piled more debt and taxes onto the younger folk here as they are prone to do.

I'm quite happy to see Albert and Ronny (two neighbours with 20 condos between each) suddenly having to pay their share.

20 condos each??? Good riddance

[Lisafuller]

Agree, in most cases, the higher taxes only impact those who can afford it — given the extent they are earning & spending at those levels…

Income Tax:

1% more tax on income > $500k
2% more tax on income > $1m

Automobile Tax:

220% ARF (instead of 100%) on OMV > $80,000

Eg. popular vehicles like Lexus RX300, Porsche Macan & Volvo XC90 are all < $80k OMV

Property Tax:

Increase on owner occupied units with annual value > $30k which I believe starts to incrementally impact properties worth > $3m.

Plenty of condos are worth more than 3M now though. What does annual value >$30K refer to? I would say basically any house is worth more than that.

[malcontent]

Agree, in most cases, the higher taxes only impact those who can afford it — given the extent they are earning & spending at those levels…

Income Tax:

1% more tax on income > $500k
2% more tax on income > $1m

Automobile Tax:

220% ARF (instead of 100%) on OMV > $80,000

Eg. popular vehicles like Lexus RX300, Porsche Macan & Volvo XC90 are all < $80k OMV

Property Tax:

Increase on owner occupied units with annual value > $30k which I believe starts to incrementally impact properties worth > $3m.

Plenty of condos are worth more than 3M now though. What does annual value >$30K refer to? I would say basically any house is worth more than that.

How is the annual value calculated?

I believe it’s based on estimated annual rental the property is expected to fetch. But it seems more like half the amount. So I’m guessing $30k is for homes that could rent out for $5k per month. I’m not 100% sure this is correct, so feel free to correct me.

Just keep in mind, for valuations above this, property tax only ticks up incrementally from there — it’s not a tax cliff.

[abbby]

Singapore is just looking to be really expensive to live in..

[PNGMK]

Agree, in most cases, the higher taxes only impact those who can afford it — given the extent they are earning & spending at those levels…

Income Tax:

1% more tax on income > $500k
2% more tax on income > $1m

Automobile Tax:

220% ARF (instead of 100%) on OMV > $80,000

Eg. popular vehicles like Lexus RX300, Porsche Macan & Volvo XC90 are all < $80k OMV

Property Tax:

Increase on owner occupied units with annual value > $30k which I believe starts to incrementally impact properties worth > $3m.

Plenty of condos are worth more than 3M now though. What does annual value >$30K refer to? I would say basically any house is worth more than that.

How is the annual value calculated?

I believe it’s based on estimated annual rental the property is expected to fetch. But it seems more like half the amount. So I’m guessing $30k is for homes that could rent out for $5k per month. I’m not 100% sure this is correct, so feel free to correct me.

Just keep in mind, for valuations above this, property tax only ticks up incrementally from there — it’s not a tax cliff.

Yes ARV is an adjusted average value of return (for example mine is 24,000 which is 2k a month but in reality it would rent for closer to 4k month - however I think the ARV is based on the average return after costs such as mortgage interest etc so the 50% is to allow for costs?). The govt has all the tools to easily calculate it via IRAS but I know my ARV has not changed for a decade.

[Lisafuller]

Agree, in most cases, the higher taxes only impact those who can afford it — given the extent they are earning & spending at those levels…

Income Tax:

1% more tax on income > $500k
2% more tax on income > $1m

Automobile Tax:

220% ARF (instead of 100%) on OMV > $80,000

Eg. popular vehicles like Lexus RX300, Porsche Macan & Volvo XC90 are all < $80k OMV

Property Tax:

Increase on owner occupied units with annual value > $30k which I believe starts to incrementally impact properties worth > $3m.

Plenty of condos are worth more than 3M now though. What does annual value >$30K refer to? I would say basically any house is worth more than that.

How is the annual value calculated?

I believe it’s based on estimated annual rental the property is expected to fetch. But it seems more like half the amount. So I’m guessing $30k is for homes that could rent out for $5k per month. I’m not 100% sure this is correct, so feel free to correct me.

Just keep in mind, for valuations above this, property tax only ticks up incrementally from there — it’s not a tax cliff.

I see, I did guess that that could be the way it’s calculated. I just think rental price is so arbitrary, for homes that are on the fence I don’t see how one could fairly decide if it’s worth more than $30K.

[Lisafuller]

Singapore is just looking to be really expensive to live in..

You don’t say, and it just seems to be getting more expensive every year.

[Lisafuller]

Plenty of condos are worth more than 3M now though. What does annual value >$30K refer to? I would say basically any house is worth more than that.

How is the annual value calculated?

I believe it’s based on estimated annual rental the property is expected to fetch. But it seems more like half the amount. So I’m guessing $30k is for homes that could rent out for $5k per month. I’m not 100% sure this is correct, so feel free to correct me.

Just keep in mind, for valuations above this, property tax only ticks up incrementally from there — it’s not a tax cliff.

Yes ARV is an adjusted average value of return (for example mine is 24,000 which is 2k a month but in reality it would rent for closer to 4k month - however I think the ARV is based on the average return after costs such as mortgage interest etc so the 50% is to allow for costs?). The govt has all the tools to easily calculate it via IRAS but I know my ARV has not changed for a decade.

How does the value stay the same over a decade though? There’s no way it hasn’t gone up over that long a period of time.

[malcontent]

How is the annual value calculated?

I believe it’s based on estimated annual rental the property is expected to fetch. But it seems more like half the amount. So I’m guessing $30k is for homes that could rent out for $5k per month. I’m not 100% sure this is correct, so feel free to correct me.

Just keep in mind, for valuations above this, property tax only ticks up incrementally from there — it’s not a tax cliff.

Yes ARV is an adjusted average value of return (for example mine is 24,000 which is 2k a month but in reality it would rent for closer to 4k month - however I think the ARV is based on the average return after costs such as mortgage interest etc so the 50% is to allow for costs?). The govt has all the tools to easily calculate it via IRAS but I know my ARV has not changed for a decade.

How does the value stay the same over a decade though? There’s no way it hasn’t gone up over that long a period of time.

Rents haven’t followed property prices.

https://www.srx.com.sg/price-index#

If you tap on “Rent” you can see how the rental index has changed over time, Jan 2013 was the peak level (9 years ago) and it has yet to hit a new high!

Maybe a bigger question is, why haven’t they reduced the annual value from Jan 2013 until today? Does it only go up and not down?