|
Property
Tax Act
Property tax is imposed under the Property Tax Act
on immovable properties and is payable in advance each
year. The tax payable in respect of a property is computed
by applying the applicable tax rate to the annual value
of the property.
Annual value is the estimated annual rent a property
can fetch if it were rented out. In determining the
Annual Value of a property, IRAS will consider the rentals
of similar properties in the vicinity, size and condition
of the property, and other relevant factors. The annual
value is determined in the same manner regardless of
whether the property is let-out, owner-occupied or vacant.
The annual value of the land is determined at 5% of
the market price of the land. When a building is demolished,
the land would have to be assessed by this method.
The prevailing property tax rate for industrial, commercial
and let-out residential properties is 10%. Owner-occupied
residential properties are taxed at a concessionary
rate of 4% of the annual value.
Section 6(6) of the Property Tax Act provides that
all buildings or parts of buildings used exclusively
- as places for public religious worship
- for public schools which are in receipt of grants-in-aid
from the Government
- for charitable purposes
- for purposes conducive to social development in
Singapore
shall be exempted from property tax.
|
