Calculating your Property TAX in Singapore

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property tax singapore

Today’s topic is about the taxes that Singaporeans Citizens (SC), Permanent Residents (PR) and foreigners have to pay when they purchase, sell or hold a property in Singapore.

1) Owner-Occupied Taxes (Residential)

This is also known as the property tax.

The amount of tax payable is determined by the property’s Annual Value.

Annual Value = Estimated Gross Annual Rent of the home if it was rented out.

This is the normal property tax you will pay if you are staying in the flat.

If you sublet out some rooms in the flat, you will still pay the Owner-Occupied Property Tax if you are still staying in it.

property tax singapore

2) Non-Owner-Occupied Taxes (Residential)

This is also known as the property tax.

The amount of tax payable is determined by the property’s Annual Value.

Because the owner does not stay in the property, this tax is applied on the property instead of the Owner-Occupied Taxes (Residential).

If you rent out your whole flat (meaning you are not staying in the flat), this is the tax that you will be paying.

taxation for property sg

 

3) Commercial and Industrial Properties (Non-Residential)

The amount of tax payable is determined by the property’s Annual Value.

All properties are taxed at a fixed 10% tax rate.
This property tax is applicable if you bought office spaces, commercial spaces etc.

 

4) Buyer’s Stamp Duty (BSD)

You are required to pay the BSD when you purchase a flat.

The BSD is compute based on the purchase price or market value of the property (whichever is higher).

property tax singapore 1

5) Additional Buyer’s Stamp Duty (ADSD)

This is the stamp duty paid by buyers when buying a property under specific circumstances – when you own more than 1 property or am a foreigner.

The ABSD is paid in addition of the BSD – you will need to pay BSD, then pay the ABSD.

The tax rates below are applicable for buying of residential properties.

tax for real estate in singapore

6) Resale levy if sell off within first few years

This tax is payable if you bought a subsidised HDB/EC flat, sold it, and am intending to buy another subsidised HDB/EC flat from HDB.

However, you do not need to pay the tax if you are intending to buy

  1. Design, Build and Sell Scheme (DBSS) flat
  2. HDB resale flat
  3. Private residential property (condo, etc)

 

There is a note to know about this tax, which is it accumulates interest.

For example, if you sold your subsidise flat, and have not yet decided if you wish to buy another subsidise flat, you can choose not to pay the tax.

However, if after 1 year, you decided to buy another subsidised flat from HDB, you will have to pay the tax PLUS interest – which is charged at 5% per year.

The interest can accumulate to quite a huge amount, hence think twice and you’re your next flat before selling your current flat.

Below is the amount of levy to pay on flats bought on or after 3rd March 2006

 

property tax singapore

 

Below is the amount of levy to pay on flats bought before 3rd March 2006.

 

real estate tax

The amount is based on the resale price of the flat or 90% of its market valuation, whichever is higher.

*only applicable to those upgrading their flats to a larger flat type.

 

7) Seller Stamp Duty (SSD)

The money you make from selling your flat is not taxable in Singapore UNLESS you bought and sold the property within 4 years.

The 4-years is known as ‘holding period’.

If you sell your property outside of the holding period, you do not need to pay the SSD.

tax you should know in singapore