Owners of one- and two-room HDB flats will continue to pay no property tax in 2015, while those living in bigger flats will pay less compared to 2014, revealed the Inland Revenue Authority of Singapore (IRAS).
The reduction in property taxes takes effect from 1 January next year, when the Annual Values (AVs) are lowered by around three percent to reflect the dip in market rentals. The AV is the estimated annual market rent of a property.
The falls in AVs will see owners of three- to five-room units and executive flats enjoying property tax savings of $12 to $14.
With more progressive tax rates implemented since 2014, coupled with the latest revisions in AVs, HDB residents will enjoy tax savings of between $42 and $54 in 2015 compared to two years ago.
IRAS also stated that property tax has to be paid by 31 January 2015. A five percent penalty will be imposed on owners who fail to pay their tax by that date.
For more information, go to www.iras.gov.sg
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
