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Revision in Annual Value of flats will not affect GST Credits & Senior Citizens' bonus; Singaporeans have till 31 December 2007 to sign up to get 2007 GST Credits & Senior Citizens' Bonus
13 November 2007
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The 2008 revision in the Annual Value (AV) of properties announced by the Inland Revenue Authority of Singapore (IRAS) will not affect the amount of GST Credits and Senior Citizens' Bonus (SCB) that will be paid out in 2009 for most Singaporeans.
2. The GST Credits and SCB are given out over 4 years from 2007 to 2010 as part of the GST Offset Package to help Singaporeans cope with the 2 % increase in GST that took effect on 1 July 2007. The amounts given for a citizen in a year are determined by the annual value (AV) of his house and his assessable income (AI) in the previous year.
2009 GST Credits and Senior Citizens' Bonus
3. As announced by MOF & IRAS on 12 Nov 07, AVs will be raised for most properties including all HDB flat types with effect from 1 Jan 2008. However, the rise in AVs will not affect the GST Credits and SCB that will be received by Singaporeans who have not shifted homes. Singaporeans whose NRIC addresses have not changed and AI remains within the same category will therefore receive the same amount of GST Credits and SCB in 2009 as what they will receive in 2008 (which is based on 2007 AVs).
4. Singaporeans who have shifted home will have their 2009 GST Credits and SCB determined based on the AV of their NRIC address as of 31 December 2008. In view of the 2008 revision in the AV of HDB flats, the AV cut-offs for the GST Credits and SCB for 2009 will be adjusted to broadly maintain the distribution of benefits that was intended when the GST Offset Package was announced earlier this year. The lower AV cut-off will be raised from $5,000 to $6,000, which would cover all 1 to 3-room HDB flats. The higher AV cut-off will be raised from $10,000 to $11,000, which would cover all 4-room, 5-room and Executive HDB flats and some private properties.
5. The new AV cut-offs will also apply to Singaporeans who are receiving their GST Credits for the first time in 2009, such as new citizens and those turning 21. (See Tables 1 & 2 for the revised AV bands and corresponding GST Credits and SCB).
Table 1: GST Credits for 2009
2009 GST Credits | Annual Value of Home in 2008 | |||
|---|---|---|---|---|
Up to $6,000 (1-3R HDB flats) | More than $6,000 (4R, 5R, Exec flats and some less expensive private properties) | More than $11,000 (Most expensive private properties) | ||
Assessable Income for Year of Assessment 2008 | Up to $24,000 | $250 | $200 | $100 |
More than $24,000 | ||||
More than $100,000 | $100 (for 1 year*) | |||
NSFs/NSmen | $100 (for 1 year*) | |||
*If any individual has already received GST Credits in previous years, he will not receive the $100. NSFs/NSmen will receive the $100 in the year that they first qualify.
Table 2: Senior Citizens' Bonus for 2009
2009 Senior Citizens' Bonus | 2008 Annual Value of Home | |||
|---|---|---|---|---|
Up to $6,000 (1-3R HDB flats) | More than $6,000 (4R, 5R, Exec flats and some less expensive private properties) | More than $11,000 (Most expensive private properties) | ||
Assessable Income for Year of Assessment 2008 | Up to $24,000 | Age 55 - 59: Age 60 & above: | Age 55 - 59: Age 60 & above: | Age 55 - 59: Age 60 & above: |
More than $24,000 | ||||
More than $100,000 | None | |||
2007 GST Credits and Senior Citizens' Bonus
6. Singaporeans have up to 31 December 2007 to sign up for their 2007 GST Credits and SCB. As of 11 November 2007, 2.2 million Singaporeans, or 95% of eligible Singaporeans have done so, with over $600 million claimed. For those who have not signed up, they can do so through the website (www.gstoffset.gov.sg) or by filling up the GST/1 forms available at any Community Centres/Clubs, Community Development Councils, SingPost office or CPF Service Centre by 31 December 2007. The CPF Board will be sending out reminder letters to these citizens on 15 November 2007. Singaporeans who do not sign up by 31 December 2007 will not receive the 2007 GST Credits and SCB.
7. Singaporeans who need help to sign up can approach officers at any of the 28 C itizenConnect Centres at Community Centres/Clubs and government offices (see Annex A) Grassroots leaders will also conduct outreach efforts in the next 6 weeks to help elderly and low income families sign up.
8. The GST Credits and SCB will be paid into the recipients' bank accounts within 4 working days for applications done online, or 10 working days for applications through hard copy forms. Those requesting cheque payment will receive their cheque within 15 working days.
9. For more information on the GST Offset Package, please visit www.gstoffset.gov.sg or call the CPF Board at 1800-2222-888.
MINISTRY OF FINANCE