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Revised Annual Values for HDB flats from 1 January 2008

12 Nov 2007

The Inland Revenue Authority of Singapore (IRAS) will be revising the Annual Values (AVs) of most properties, including HDB flats.

2. The AVs of all properties are subject to annual reviews by IRAS to ensure that they reflect prevailing market rentable values for property tax computation. This year, most AVs will be revised upwards.

3. The property tax rate is currently set at 10% of the AV of the property. For owner-occupied residential properties, the owners enjoy a concessionary tax rate of 4%. (Please refer to Appendix 1 for an illustration of property tax computation.)

AV increase for Owner-occupied HDB Flats

4. AVs will be increased for all HDB flat types, with effect from 1 January 2008, reflecting the significant increase in their market rental values. Generally, more centralised and popular areas like Bishan, Bukit Merah and Marine Parade would have higher AV increases, compared to other areas. The average AV increase in percentage terms for the flat types are: 20% for 1-room and 2-room flats, 25% for 3-room flats, 18% for 4-room flats, 20% for 5-room flats and 18% for executive flats. However, the increase in AVs does not translate to proportionate increase in property tax actually payable, due to the property tax rebates that have been granted by Government.

5. Currently, the owners of all 1-room, 2-room and 13% of 3-room HDB flats do not pay any property tax because their property tax liability has been offset by the property tax rebates which have been given since 1994 when GST was introduced (Please refer to Appendix 2.)

6. As part of the GST Offset Package announced in Budget 2007, all owner-occupied residential properties will be given an additional property tax rebate of up to $100 per year in 2008 and 2009. As a result, 90% of all HDB flat owners will not pay more property tax in 2008 even after the AVs of their flats will be increased in 2008. In summary,

  • 1-room and 2-room flats will pay zero property tax.
  • 3-room flats
    1. 60% (compared to 13% in 2007) will pay zero property tax.
    2. 40% will be paying less tax than in 2007.
  • 4-room, 5-room and executive flats
    1. About 15% will pay more property tax but the increase in property tax is less than $40 (or about $3 per month).

(Please refer to Appendix 3 for the average property tax for HDB flats.)

Combined Valuation Notice and Bill

7. All HDB flat owners will receive their valuation notices and property tax bills by 1 January 2008. Flat owners who need to pay property tax will also receive a "Guide to Property Tax" brochure that explains how the property tax payable is calculated and how payment can be made. (Please refer to Appendix 4 for A Guide to Property Tax brochure).

Property tax for 2008 is payable by 31 January 2008

8. IRAS encourages HDB flat owners to join the GIRO scheme as it allows them to enjoy up to 12 interest-free monthly instalments. The GIRO application forms can be downloaded from IRAS' website and the average processing time is 3 weeks.

9. Taxpayers with enquiries on AV revision or property tax can find more information at IRAS' website or email IRAS or call IRAS on 1800-356 8600.