Property taxes in Singapore are among the highest in the world. For homeowners, this means having to pay a hefty amount of money each year to the government. However, there are some ways that you can reduce your property tax burden in Singapore. With the right knowledge and strategies, you can minimise your property tax payments and keep more of your hard-earned money.
Know the Different Types of Property Taxes
The first step to minimising your property tax burden is to understand the different types of property taxes that you may be liable for. In Singapore, the most common type of property tax is the Annual Value (AV) tax. This tax is based on the estimated annual rental value of your property. Additionally, you may also be liable for other property taxes such as the Additional Buyer’s Stamp Duty (ABSD) or the Seller’s Stamp Duty (SSD).
Take Advantage of Tax Reliefs and Exemptions
The Singapore government offers several tax reliefs and exemptions to help homeowners reduce their property tax burden. These reliefs and exemptions include the Home Ownership Scheme (HOS) and the Additional Buyer’s Stamp Duty (ABSD) rebate. Under the HOS, eligible homeowners can receive up to 50 percent in tax relief on their AV tax. The ABSD rebate offers up to 10 percent in tax relief for first-time home buyers.
Opt for a Monthly Property Tax Payment Plan
If you’re looking for an even more affordable way to pay your property taxes, you may want to consider opting for a monthly payment plan. Under this plan, you will be able to spread out your payments over 12 months, which can help to reduce the strain on your finances. To apply for a monthly payment plan, you will need to provide documents such as your NRIC and proof of address.
Claim Tax Deductions
Another way to reduce your property tax burden is to claim tax deductions. In Singapore, eligible homeowners can claim up to S$5,000 in tax deductions for home improvement works such as painting, repairs, and renovations. Additionally, homeowners can also claim tax deductions for certain home expenses such as electricity and water bills.
Consult a Tax Professional
If you’re still unsure of how to minimise your property tax burden, you may want to consider consulting a tax professional. A tax professional can provide advice on how to reduce your tax bill and increase your tax deductions. Additionally, they can also help you to review your documents and ensure that you are meeting all of your tax obligations.
Property taxes in Singapore can be a huge burden for homeowners. However, there are several ways that you can reduce your property tax burden. By knowing the different types of property taxes, taking advantage of tax reliefs and exemptions, opting for a monthly payment plan, and claiming tax deductions, you can minimise your tax payments and keep more of your hard-earned money.