HDB room rental - pay tax?

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HDB room rental - pay tax?

Post by macaroonie » Sun, 22 Jul 2012 9:14 pm

Landlords who rent out a room in their HDB flat, do they need to register it somewhere? There are those that just rent it out without a formal contract, would they have to also pay tax on this income? If they don't tell anyone about it does that mean they are avoiding paying tax?

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Post by sundaymorningstaple » Sun, 22 Jul 2012 11:27 pm

Why?
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by macaroonie » Sun, 22 Jul 2012 11:36 pm

Because i am concerned about some landlords not wanting a formal contract when renting rooms in HDB flats and some wanting payment by cash and not bank transfer.

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Post by sundaymorningstaple » Sun, 22 Jul 2012 11:59 pm

If the don't want a contract, then they are probably not informing HDB. Don't rent from them as you could find yourself on the street if a neighbour rats to the HDB and they are found wanting. Worse than a couple of bucks in tax revenues, they could actually have their flats repossessed by HDB.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by the lynx » Mon, 23 Jul 2012 8:48 am

I have a question, what if a work pass holder stays in single room in a HDB owned by Singaporean friend and family for free? Or pay a so-called nominal sum (instead of market rate)? No agent involved etc.

Does the HDB owner still need to inform HDB about this?

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Post by ecureilx » Mon, 23 Jul 2012 9:03 am

the lynx wrote:I have a question, what if a work pass holder stays in single room in a HDB owned by Singaporean friend and family for free? Or pay a so-called nominal sum (instead of market rate)? No agent involved etc.

Does the HDB owner still need to inform HDB about this?
As per the revised rules, all occupants details must be submitted to HDB ..

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Post by macaroonie » Tue, 24 Jul 2012 7:06 am

I assume submitting details is up to the landlord. If the landlord doesnt do it, is the tenant in any sort of trouble? Would not submitting really be grounds for losing one's HDB flat? wow that's a lot to lose for not doing some paperwork!

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Post by sundaymorningstaple » Tue, 24 Jul 2012 7:13 am

It's up to the Tenant to ensure that the letting out by the tenant is legal. A call to the HDB with the address of the HDB Unit will get you that information. In fact, there may well be something on the HDB site that will allow access from there but as I'm leaving the house at the moment, I don't really have enough time to search. After I get to the office, I'll see if I can find something more unless someone else does in the meantime.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by ecureilx » Tue, 24 Jul 2012 10:20 am

macaroonie wrote:I assume submitting details is up to the landlord. If the landlord doesnt do it, is the tenant in any sort of trouble? Would not submitting really be grounds for losing one's HDB flat? wow that's a lot to lose for not doing some paperwork!
You can figure it out here ..

http://www.hdb.gov.sg/fi10/fi10323p.nsf ... enDocument

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Post by macaroonie » Tue, 24 Jul 2012 9:01 pm

Thanks Ecurelix! Looks like the onus is really on the landlord to notify HDB and i guess the only thing i tenant needs to do is just notify MOM about the change in address. So i guess in reality, MOM can check with HDB to see if the place has been registered right?

It does seem quite tough though, not registering and then potentially losing your flat! WOW!

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Post by sundaymorningstaple » Tue, 24 Jul 2012 10:36 pm

It wasn't always like that. Before, there were no controls and there were landlords using the place as a dormitory for foreign workers sometimes 4 to room in every room of the house including the hall. Brought down the neighbourhood really quickly. So, like everything else, here, the gahmen use draconian measures to stop it. Funny thing is, that's the only why anybody will abide by the law here.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by zzm9980 » Wed, 25 Jul 2012 9:02 am

sundaymorningstaple wrote:It wasn't always like that. Before, there were no controls and there were landlords using the place as a dormitory for foreign workers sometimes 4 to room in every room of the house including the hall. Brought down the neighbourhood really quickly. So, like everything else, here, the gahmen use draconian measures to stop it. Funny thing is, that's the only why anybody will abide by the law here.
It still happens, but I'm sure you know that.

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Post by ecureilx » Wed, 25 Jul 2012 9:20 am

macaroonie wrote:Thanks Ecurelix! Looks like the onus is really on the landlord to notify HDB and i guess the only thing i tenant needs to do is just notify MOM about the change in address. So i guess in reality, MOM can check with HDB to see if the place has been registered right?

It does seem quite tough though, not registering and then potentially losing your flat! WOW!
Or HDB will may be notified when you advice change of address.

Now, you see why PR / SC are not in the HDB advisory ?

Well, SC/PR must advice change of address within a set period of time or they end up in jail .. even recently one guy found out that 'being busy' is not an excuse to not change address properly - for ICA's records.

SMS - honestly, I started seeing those 'dormitory' stuff only after 2003 or so .. and one of my former colleague - single old guy - even checked himself out of his house and moved to a rental room, while his whole unit was rented out to Filipinos .. and each room had 4 tenants, and 3 rooms - 12 tenants - and at 400 per pax, it was a lot of money not to loose ..

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Post by therat » Wed, 25 Jul 2012 11:34 am

sundaymorningstaple wrote:It wasn't always like that. Before, there were no controls and there were landlords using the place as a dormitory for foreign workers sometimes 4 to room in every room of the house including the hall. Brought down the neighbourhood really quickly. So, like everything else, here, the gahmen use draconian measures to stop it. Funny thing is, that's the only why anybody will abide by the law here.
Another reason is there are alot of cases. Tenant borrow money from loan shark using the rental house address. Even after they move out the place.

Owner make police report for the loan shark visit. And the police not able to track down the tenant as he don't change his address.

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Post by sundaymorningstaple » Wed, 25 Jul 2012 11:49 am

squirrel, I know it's been going on since the '90's. Hell, I did it myself from 88-91.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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