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Property Tax - Budget 2013
Property Tax - Budget 2013
Owner-occupied / Non-owner-occupied residential properties no longer enjoy a flat rate of 0 to 6% and 10% of their Annual Value (AV) of their property.
With effect from 1st Jan 2014 and a slight increment in 1st Jan 2015, house owners will be taxed based on the tables below:
Owner-occupied residential property tax in 2014 (current rate 0 to 6% of AV)
AV - $8,000 or less - 0% (2015 - 0%)
AV - Next $47,000 - 4% (2015 - 4%)
AV - Next $5,000 - 5% (2015 - 6%)
AV - Next $10,000 - 6% (2015 - 6%)
AV - Next $15,000 - 7% (2015 - 8%)
AV - Next $15,000 - 9% (2015 - 10%)
AV - Next $15,000 - 11% (2015 - 12%) *DOUBLED!!!*
AV - Next $15,000 - 13% (2015 - 14%)
AV - Above $130,000 - 15% (2015 - 16%)
Non-owner-occupied residential property tax in 2014 (current rate 10% of AV)
AV - $30,000 or less - 10% (2015 - 10%)
AV - Next $15,000 - 11% (2015 - 12%)
AV - Next $15,000 - 13% (2015 - 14%)
AV - Next $15,000 - 15% (2015 - 16%)
AV - Next $15,000 - 17% (2015 - 18%)
AV - Above $90,000 - 19% (2015 - 20%) *DOUBLED!!!*
With effect from 1st Jan 2014 and a slight increment in 1st Jan 2015, house owners will be taxed based on the tables below:
Owner-occupied residential property tax in 2014 (current rate 0 to 6% of AV)
AV - $8,000 or less - 0% (2015 - 0%)
AV - Next $47,000 - 4% (2015 - 4%)
AV - Next $5,000 - 5% (2015 - 6%)
AV - Next $10,000 - 6% (2015 - 6%)
AV - Next $15,000 - 7% (2015 - 8%)
AV - Next $15,000 - 9% (2015 - 10%)
AV - Next $15,000 - 11% (2015 - 12%) *DOUBLED!!!*
AV - Next $15,000 - 13% (2015 - 14%)
AV - Above $130,000 - 15% (2015 - 16%)
Non-owner-occupied residential property tax in 2014 (current rate 10% of AV)
AV - $30,000 or less - 10% (2015 - 10%)
AV - Next $15,000 - 11% (2015 - 12%)
AV - Next $15,000 - 13% (2015 - 14%)
AV - Next $15,000 - 15% (2015 - 16%)
AV - Next $15,000 - 17% (2015 - 18%)
AV - Above $90,000 - 19% (2015 - 20%) *DOUBLED!!!*
Last edited by Pal on Mon, 25 Feb 2013 11:33 pm, edited 1 time in total.
- sundaymorningstaple
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The AV is the estimated annual rent of your property if it were to be rented out, excluding the furniture, furnishings and maintenance fees. It is determined after analysing the rents of similar or comparable properties. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant. If your property is rented out, the AV could be higher or lower than your actual rents as the AV reflects the market rent at the time of review, while your actual rents were committed earlier.
Illustration (A):
Estimated market rent of your flat is $1,000 per month
Annual Value is: $1,000 x 12 = $12,000
In short, AV is a value determined by IRAS. Recent years, it is not uncommon for IRAS to increase a property's AV a few times a year.
More info at:
http://www.iras.gov.sg/irasHome/page04_ektid2110.aspx
If you are a property owner, you can login at IRAS website www.iras.gov.sg to check your property's Annual Value (AV).
Illustration (A):
Estimated market rent of your flat is $1,000 per month
Annual Value is: $1,000 x 12 = $12,000
In short, AV is a value determined by IRAS. Recent years, it is not uncommon for IRAS to increase a property's AV a few times a year.
More info at:
http://www.iras.gov.sg/irasHome/page04_ektid2110.aspx
If you are a property owner, you can login at IRAS website www.iras.gov.sg to check your property's Annual Value (AV).
Hmmm... interesting, thanks for that.
I wonder why they use a 'derivative of value', rather than just an estimate of the property's value, as a benchmark.
Curious.
What do you think is the idea here. To 'encourage' retirees to down-size into smaller units, to free up larger homes for young SGns (who are resisting having children, apparently)?
I wonder why they use a 'derivative of value', rather than just an estimate of the property's value, as a benchmark.
Curious.
What do you think is the idea here. To 'encourage' retirees to down-size into smaller units, to free up larger homes for young SGns (who are resisting having children, apparently)?
In which case it would seem to be a tax on owning or renting property*. I.e. it hits everyone who doesn't still live their parents. And how is this going to contribute towards resolving SG's low child-birth rate I wonder.Pal wrote:Idea is to tax more for those living in private properties and those having investment properties.
Looking at the tables, the new tax easily exceed the current rate and not forgetting they can make upward adjustments of the AV.
Another nail in the coffin to the idea that SG is a low tax country. Maybe it is on direct taxes, but take the 'cost of normal living' [perhaps the '4C's' and it surely isn't].
* You're right Sergei, naturally landlord's costs get passed on to tenants.
And market rents are based on... ?scarbowl wrote:Rents are market based - not cost based. property taxes have nothing to do with it.
Value, costs, and market rents (aka 'comparatives').
All a bit chicken and egg.
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