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Details of Tax Measures and Rebates
Property Tax Rebates
Explanatory note
Measure:
A fixed rebate of up to $8,000 per year
will be granted for all commercial and industrial properties.
In addition, a 30% rebate will also be given for the
remaining property tax payable. This new rebate structure
will replace the current 25% property tax rebate,
and will be granted for the period from 1st
July 01 to 31st Dec 02. The total tax savings
from this measure are estimated to be $880 million.
| 1st
July 01 - 31st Dec 01* |
$4,000 +
30% rebate on balance |
25%
rebate |
| 1st
Jan 02 - 30th June 02 |
$4,000 +
30% rebate on balance |
25%
rebate |
| 1st
July 02 - 31st Dec 02 |
$4,000 +
30% rebate on balance |
Nil |
* Since property tax is payable in advance,
owners who have already paid their tax for this period will
be entitled to a refund from IRAS.
Illustration:
The annual value of a commercial property
is $90,000. The property tax payable for the 6-month period
from1st July 01 to 31st Dec 01:
Property Tax Payable without rebate = 10%
* $90,000 * 0.5 = $4,500
1st Package Measure (replaced
by 2nd package):
Property Tax Payable after 25% rebate = $4,500
– 0.25*($4,500) = $3,375
Tax saving = $4,500 - $3,375 = $1,125
2nd Package Measure:
Property Tax Payable after $4,000 fixed rebate
= $4,500 - $4,000 = $500
Property Tax Payable after additional 30%
rebate on the remaining tax payable = $500- 0.3*$500 =$350
Tax saving = $4,500 - $350 = $4,150
Tax saving from 1 July 2001 to 31 Dec 2002
= $4,150 x 3 = $12,450
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