Property owners will see lower or no change in the property tax in 2017

Inland Revenue Authority of Singapore (IRAS) has announced that almost all private residential property owners will see lower or no change in their property tax in 2017.

It said that all property owners will be receiving their property tax bills by end December 2016 and they are reminded that the property tax for 2017 is payable by 31 January 2017.

Details of the 2017 property tax payable for HDB flat owner-occupiers is as below:

Source : IRAS.

IRAS stated that it reviews the Annual Values (AVs) of properties annually 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.

It also said that the concessionary ‘Owner-Occupier Residential Tax Rates’ is applied on owner-occupied residential properties while the ‘Residential Tax Rates’ is applied on non-owner-occupied properties.

Source : IRAS.

IRAS stated that property owners who are facing financial difficulties should approach 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.

It also alerts members of the public that 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.