IRAS slashes property taxes: Things you need to know

HDB flat owners will have to pay no or lesser property taxes next year giving major relief to them. Photo courtesy: Value Stay in Singapore

Housing and Development Board (HDB) flat owners will now pay no or lesser taxes, announces Inland Revenue Authority of Singapore(IRAS).

A press release issued by IRAS, states that one and two room HDB flat owners will not have to pay any tax while the three, four and five room flat owners would have to shell out less money as compared to last year. Some of the three room flat owners will pay nothing in the property tax while others will pay S$18.40 next year, 51 per cent less tax compared to current year.  

The new slabs
Four-room flat owners will pay S$52 to S$100, 26 per cent to 19.2 per cent less. Five-room flat owners will pay S$83.20 to S$131.20, about 20.6 per cent to 14.1 per cent less than present year. Executive flat owners will pay S$95.20 to S$143.20, down 18.5 per cent to 13.1 per cent from this year.

The tax slabs for HDB flat owners have seen a sharp decline this year, with the tax payable for this group - excluding one and two-room flat owners, at least 9 to 24 per cent, on the back of annual value (AVs) being reduced in tandem with falling market rentals.

Deadline
The property owners will be receiving their property tax bills by end December 2016 and the last date for paying property bills is January 31, 2017.  
IRAS reviews the Annual Values (AVs) of properties to ensure that they reflect prevailing market rentals. Property tax is a tax on property ownership and is payable on all properties regardless whether the property is rented out, owner-occupied, or left vacant. Property tax is computed by multiplying the AV of the property with the relevant set of progressive property tax rates for residential properties.     

Planned payment
Owners of the flat who face financial problems in making the payment can contact IRAS at 1800-356 8300 for assistance to discuss a suitable payment plan before 31 January 2017. Payment plans may include deferment of payment and scheduled instalments.   

Word of caution
There will be a 5% penalty imposed for property owners, who fail to pay or have not arranged to pay their tax by the due date. IRAS encourages property owners to join GIRO to enjoy up to 12 interest-free monthly instalments or opt for a one-time deduction. Taxpayers who have bank accounts with DBS/POSB, UOB or OCBC can apply for GIRO via Internet Banking and receive instant approval.  

Author
Ashraf Jamal
Ashraf Jamal – Senior Writer

Ashraf Jamal brings a rare depth to writing equipped with a degree in journalism, a postgraduate degree in political science, and a degree in law from the Allahabad University. His experience includes editing and publishing the Northern India Patrika and writing for Times of India for almost a decade covering just about any topic under the sun including NRIs and Indian diaspora.

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