For a second year in a row, HDB households will see reduced property taxes, the Inland Revenue Authority of Singapore (IRAS) said on Monday (Dec 8).
The reduced property taxes kick in from Jan 1, 2015, and HDB residents will enjoy tax savings of between S$42 and S$54 for the year, compared to two years ago, IRAS said in a news release.
IRAS said next year, the Annual Values (AVs) or estimated annual rent of a property, will be lowered by about 3 per cent to reflect the dip in market rentals. Property tax payable on HDB flats is calculated by applying property tax rates on AVs.
Owners residing in three-, four-, five-room flats and executive flats will enjoy property tax savings of S$12 to S$14 due to the fall in AVs.
All owner-occupiers of one- and two-room HDB flats will continue to pay no property tax in 2015.
IRAS said property tax rates have been made more progressive since this year. Owner-occupiers of HDB flats paid less property tax compared to 2013, as the first tier of tax-exempt AV was raised from S$6,000 to S$8,000.
HDB flat owners will receive their property tax notices and bills by the end of this month and the tax has to be paid up by Jan 31, 2015. Those who flout the rule, or who have not arranged to pay their tax by then, will incur a 5 per cent penalty.
Source : Channel NewsAsia – 8 Dec 2014