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HDB flat owners to enjoy lower tax rates in 2017

PropertyGuru
Updated
Almost all private home owners will see minor to no adjustments to their property taxes next year, while HDB flat owners will pay lower taxes or even no tax at all.

HDB flat owners will benefit from property tax cuts next year.

Almost all private home owners will see minor to no adjustments to their property taxes next year, while HDB flat owners will pay lower taxes or even no tax at all, reported Channel NewsAsia, citing figures from the Inland Revenue Authority of Singapore (IRAS).

By 2017, HDB flat owners will enjoy tax savings of between 13.1 and 51 percent, with three-room units receiving the largest tax cuts. The naximum property tax for three-room flats will be reduced from S$37.60 to S$18.40 next year. One- and two-room flats, as well as certain three-room flats, will be exempt from property tax.

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Taxes for four-room flats, which currently range from S$71.20 to S$119.20, will be reduced to between S$52 and S$100 next year; taxes for five-room flats, which currently range from S$104.80 to S$152.80, will be cut to between S$83.20 and S$131.20 next year. Owners of executive flats will also see their property tax decline from between S$116.80 and S$164.80 to between $95.20 and S$143.20 in 2017.

IRAS reminded home owners, who will receive their property tax bills by end-December, to pay their taxes for next year by end-January 2017. It also revealed that it reviews the annual values of properties every year to ensure they reflect prevailing market rents.

Computed by multiplying the annual property value with tax rates for residential properties, property tax is a tax on the ownership of a property and is payable regardless of whether it is owner-occupied, rented out or left vacant.

Property owners facing financial difficulties can approach IRAS for assistance before 31 January 2017 to discuss a suitable payment plan, which may include scheduled instalments and deferment of payment. A five percent penalty will be imposed on those who fail to pay or have not arranged to pay their taxes by the due date.

 

Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories, email cheryl@propertyguru.com.sg