Answer ... (a) What taxes are levied and what are the applicable rates?
Property tax is levied on property ownership whether the property is occupied by the owner, rented out or left vacant. Property tax in Singapore is calculated by multiplying the annual value of the property with the relevant applicable property tax rates.
For residential properties, owner-occupier tax rates range from 0% to 23% (0% to 32% from 1 January 2024). Residential properties that are not occupied by the owner have an applicable tax rate ranging from 11% to 27% (12% to 36% from 1 January 2023).
The tax rate for non-residential properties is 10%.
Stamp duty is levied on the execution of documents transferring:
- interests in Singapore immovable property;
- shares of Singapore-incorporated companies; and
- shares of foreign-incorporated companies registered in a Singapore branch register.
However, no stamp duty is payable on Singapore immovable property or shares if the transfer:
- is in accordance with a distribution under a testamentary will or the laws of intestacy; or
- is to a spouse pursuant to a court order made in divorce proceedings.
Stamp duty is also levied on documents relating to leases of immovable property in Singapore, such as tenancy agreements and leases. The applicable stamp duty payable depends on the nature of the lease.
(b) How is the taxable base determined?
Property tax in Singapore is calculated by multiplying the annual value of the property with the relevant applicable property tax rates. The annual value of a property is the estimated gross annual rent of the property if it were to be rented out. It is determined based on estimated market rentals of similar or comparable properties.
(c) What are the relevant tax return requirements?
The annual property tax bill must be paid by 31 January. All other property tax notices must be paid within one month of the date of notice.
(d) What exemptions, deductions and other forms of relief are available?
Between 1 January 2023 and 31 December 2023, all owner-occupied residential properties are eligible for a property tax rebate of 60% of the property tax payable for 2023.
In addition, various other property tax reliefs are applicable in the following scenarios:
- individuals or married couples who own and live in a residential property;
- an individual owner whose house is being demolished and rebuilt for subsequent owner-occupation;
- an individual owner who purchased a piece of land to construct a house for subsequent owner-occupation; or
- a non-residential property owned and used by a registered charity for charitable, public religious worship or educational purposes.