Property tax is a major source of government revenue in Singapore and it is important for property owners to understand how it works. This article will provide an overview of property tax in Singapore, including how it is calculated, how it is paid, and the different exemptions and reliefs available.
What is Property Tax?
Property tax is a tax that is imposed on all properties, including residential and commercial properties. It is calculated based on the annual value of the property, which is an estimation of the rent that could be obtained for the property if it were to be rented out.
How is Property Tax Calculated?
Property tax is calculated using the following formula: Annual Value x Property Tax Rate = Property Tax Payable. The Annual Value of a property is determined by the Inland Revenue Authority of Singapore (IRAS). The Property Tax Rate is a percentage rate that is determined by the Government. The current Property Tax Rate is 10%.
How is Property Tax Paid?
Property tax is paid annually and is due on 1st January each year. Property owners can pay their property tax online via the IRAS website or at any Singapore Post Office.
Exemptions and Reliefs
Property owners may be eligible for certain exemptions and reliefs from property tax. These include exemptions for properties that are used for non-profit or charitable purposes, and reliefs for properties owned by persons aged 60 and above, or persons with disabilities.
Conclusion
Property tax is an important source of government revenue in Singapore and it is important for property owners to understand how it works. This article has provided an overview of property tax in Singapore, including how it is calculated, how it is paid, and the different exemptions and reliefs available.