Property tax, which is a wealth tax, is imposed on the ownership of immovable properties in Singapore. It applies whether the property is occupied by the owner, rented out or left vacant. It is payable in advance each year and is computed by applying the applicable tax rate to the Annual Value of the property.
The Annual Value of a property is generally derived based on the estimated annual rent that it 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 of a property is determined in the same manner regardless of whether the property is let-out, owner-occupied or vacant.
Property Tax on Residential Properties
A progressive property tax regime for residential properties was introduced in Budget 2010 and enhanced in Budget 2013. Prior to that, property tax was levied at a flat rate for all residential properties. A more progressive tax regime on residential property is socially equitable since taxpayers with more valuable residential properties pay higher property tax. Such a tax structure will not hurt the competitiveness of our overall tax regime or reduce the incentives for enterprise.
Property Tax on Non-residential Properties
Non-residential properties, including industrial and commercial properties and land, are taxed at a single flat rate. The property tax rates can be found on IRAS’ website at www.iras.gov.sg.