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Check out the rates for 2014 and see how it impacts you....
http://www.iras.gov.sg/irashome/page04.aspx?id=12186
Taxes on high-value residential property will be bumped up, with properties that are not owner-occupied taking the biggest hit. The bill clears the way for the Minister of Finance to impose future tax rates of up to 36 percent on annual property values.
http://www.straitstimes.com/breaking-news/singapore/story/budget-2013-more-progressive-property-tax-rates-singaporean-households
does this encourage owner to lower rent and pass the savings to tenant ?
rather than give it to gov
East Lover
17-09-13, 12:36
so most of OCR condo landloards enjoy the reducing of property tax instead? :D
Good news for OCR and MM LL! :cheers5::cheers5::cheers5:
http://www.straitstimes.com/sites/straitstimes.com/files/owner-prop-tax.jpg
so most of OCR condo landloards enjoy the reducing of property tax instead? :D
Good news for OCR and MM LL! :cheers5::cheers5::cheers5:
http://www.straitstimes.com/sites/straitstimes.com/files/owner-prop-tax.jpg
Looking at the tax, if someone can afford to purchase a $1m unit, how can the person has problem paying the $1k annual tax. Even those in the central location, it is probably 1/2 month rental for the property.
Anyway, thanks for the chart.
old news already lah.
the more significant point from that budget is this: vacant pty can no longer claim pty tax refund. this will really put some pressure on holding empty pties.
how to calculate own stay annual value of the property?
so most of OCR condo landloards enjoy the reducing of property tax instead? :D
Good news for OCR and MM LL! :cheers5::cheers5::cheers5:
http://www.straitstimes.com/sites/straitstimes.com/files/owner-prop-tax.jpg
this cart for own stay
old news already lah.
the more significant point from that budget is this: vacant pty can no longer claim pty tax refund. this will really put some pressure on holding empty pties.
Tax increase some more leh... Effective 2014.... Hahahaha
East Lover
17-09-13, 13:24
Non-owner-occupied residential properties
http://www.straitstimes.com/sites/straitstimes.com/files/non-owner-prop-tax.jpg
Source: Ministry of Finance
Annual values have always been increasing. It favours smaller property.
Check out the rates for 2014 and see how it impacts you....
http://www.iras.gov.sg/irashome/page04.aspx?id=12186
Taxes on high-value residential property will be bumped up, with properties that are not owner-occupied taking the biggest hit. The bill clears the way for the Minister of Finance to impose future tax rates of up to 36 percent on annual property values.
http://www.straitstimes.com/breaking-news/singapore/story/budget-2013-more-progressive-property-tax-rates-singaporean-households
The revised tax structure is obvious to protect HDB dwellers up to 5 room. Well, more will be affected just by raising the AV.
Non-owner-occupied residential properties
http://www.straitstimes.com/sites/straitstimes.com/files/non-owner-prop-tax.jpg
Source: Ministry of Finance
East Lover
17-09-13, 14:00
The revised tax structure is obvious to protect HDB dwellers up to 5 room. Well, more will be affected just by raising the AV.
how to derive the annual value?
how to derive the annual value?
It is in your property tax statement. You can look it up by going to the IRAS website, logging into your income tax account and looking it up under the property tax section.
East Lover
17-09-13, 15:05
Dear chiaberry, thanks for the sharing ... i'm just curious to know how does gov derive this property AV is 15K, another is 20K? based on what formula? market rate psf x floor area x 1/100?
It is in your property tax statement. You can look it up by going to the IRAS website, logging into your income tax account and looking it up under the property tax section.
Dear chiaberry, thanks for the sharing ... i'm just curious to know how does gov derive this property AV is 15K, another is 20K? based on what formula? market rate psf x floor area x 1/100?
IRAS has a record on the rental transaction when your tenant pay stamp duty on the rental contract.... They use this amount as reference....
East Lover
17-09-13, 15:54
IRAS has a record on the rental transaction when your tenant pay stamp duty on the rental contract.... They use this amount as reference....
Thanks! I didn't know its from rental :p
so techinally speaking, 3 MM return 10K rental in total, is much better and secure than 1 big CCR 10K rental :rolleyes:
How is Annual Value (AV) determined?
A) Buildings
The AV is the estimated annual rent of your property if it were to be rented out, excluding the furniture, furnishings and maintenance fees. It is determined after analysing the rents of similar or comparable properties. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant. If your property is rented out, the AV could be higher or lower than your actual rents as the AV reflects the market rent at the time of review, while your actual rents were committed earlier.
Illustration (A):
Estimated market rent of your flat is $1,000 per month
Annual Value is: $1,000 x 12 = $12,000
I just checked. The highest annual value of my props currently is $31,500. So unless they revise the AV upwards, I shouldn't be much affected, I think. I don't expect the AV to go up though. Rents are not exactly shooting through the roof and there should be some downwards pressure in the next few years due to record numbers of units being TOP.
I just checked. The highest annual value of my props currently is $31,500. So unless they revise the AV upwards, I shouldn't be much affected, I think. I don't expect the AV to go up though. Rents are not exactly shooting through the roof and there should be some downwards pressure in the next few years due to record numbers of units being TOP.
Sis, progressive tax on the "wealthy".... regardless of stay or rental unit....
I just checked. The highest annual value of my props currently is $31,500. So unless they revise the AV upwards, I shouldn't be much affected, I think. I don't expect the AV to go up though. Rents are not exactly shooting through the roof and there should be some downwards pressure in the next few years due to record numbers of units being TOP.
Sis, rental may - I repeat, may take a beating.... subject to immigration slow down....
Read this and decipher
http://www.nptd.gov.sg/content/NPTD/news/_jcr_content/par_content/download_98/file.res/population-white-paper.pdf
Singapore’s total population of residents and non-
residents in 2020 is projected to be between 5.8
and 6 million, depending on our fertility trends,
life expectancy, as well as our social and economic
needs. The resident population (comprising
citizens and PRs) is projected to be 4 to 4.1
million, of which citizens alone will make up 3.5
to 3.6 million - pg5.
Compare the 5.8 mil vs the current 5.3mil @ end 2012.... 500K over 7 years or so.... meaning about 71k additional people per year.... hahahahahaha
Now do the computation.... It can be quite scarry..... Can you imagine if there were no CM and they just release land like no body business...
As for external factor, it is anybodies guess.....
I am out of the property race.... For me, minimal meat left.... But it is good as an income generator... Hahahahahaha
Well we bought our properties quite long ago. We have gone through a few down turns. We know what it's like for the rentals to hit rock bottom. Just continue to work at our day jobs. I have 30 days paid leave in a year. More than enough to have a few golfing trips here and there.
Sis, rental may - I repeat, may take a beating.... subject to immigration slow down....
Read this and decipher
http://www.nptd.gov.sg/content/NPTD/news/_jcr_content/par_content/download_98/file.res/population-white-paper.pdf
Singapore’s total population of residents and non-
residents in 2020 is projected to be between 5.8
and 6 million, depending on our fertility trends,
life expectancy, as well as our social and economic
needs. The resident population (comprising
citizens and PRs) is projected to be 4 to 4.1
million, of which citizens alone will make up 3.5
to 3.6 million - pg5.
Compare the 5.8 mil vs the current 5.3mil @ end 2012.... 500K over 7 years or so.... meaning about 71k additional people per year.... hahahahahaha
Now do the computation.... It can be quite scarry..... Can you imagine if there were no CM and they just release land like no body business...
As for external factor, it is anybodies guess.....
I am out of the property race.... For me, minimal meat left.... But it is good as an income generator... Hahahahahaha
Population projection seems way off. To hit 5.8 mil in 2020, the population growth rate is 1.1%. Was Singapore population growth rate ever so slow over such a long period of time? http://www.singstat.gov.sg/statistics/browse_by_theme/population.html
Population projection seems way off. To hit 5.8 mil in 2020, the population growth rate is 1.1%. Was Singapore population growth rate ever so slow over such a long period of time? http://www.singstat.gov.sg/statistics/browse_by_theme/population.html
I suspect more.... up to now, no stats on population in 2013 leh???? :confused::confused::confused::confused:
But it has no true meaning to me now as I am off the property game... Now I am just collecting rental which "sucks" when you do an ROI.... but what the heck... I am still :D:D
Thanks! I didn't know its from rental :p
so techinally speaking, 3 MM return 10K rental in total, is much better and secure than 1 big CCR 10K rental :rolleyes:
How is Annual Value (AV) determined?
A) Buildings
The AV is the estimated annual rent of your property if it were to be rented out, excluding the furniture, furnishings and maintenance fees. It is determined after analysing the rents of similar or comparable properties. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant. If your property is rented out, the AV could be higher or lower than your actual rents as the AV reflects the market rent at the time of review, while your actual rents were committed earlier.
Illustration (A):
Estimated market rent of your flat is $1,000 per month
Annual Value is: $1,000 x 12 = $12,000
Most of us will just lump the whole amount as rent. If all of us put in effort to separate the rent, furniture, furnishings and maintenance fee, then the AV will be reduced.
This need everyone's effort, so remember when renewing the next tenancy, indicate it in the TA clearly. :)
If all landlords separate rent from maintenance fee, the caveats will reflect a depress rental rate for that development isn't it worst off? :confused:
The revised tax structure is obvious to protect HDB dwellers up to 5 room. Well, more will be affected just by raising the AV.
Hi. How to define owner occupied property from non- owner occupied? If one has 2 properties under his or her name & did not rent out any one of the properties, does he or she pay owner occupied property for both? Kindly enlighten. Thanks.
Acalyposeisdonian
18-09-13, 08:08
Silly Question from me, a newly property noob.
Just got my first property tax notice from IRAS, my top is in jun but I pay property tax from jun-dec as whole year calculation. Why government no prorate? I was also taxed from 29 may till 3 jun for $39? Don't understand at all...
You will only have one address in your I/C. That will be the owner-occupied property.
Hi. How to define owner occupied property from non- owner occupied? If one has 2 properties under his or her name & did not rent out any one of the properties, does he or she pay owner occupied property for both? Kindly enlighten. Thanks.
princess_morbucks
18-09-13, 08:48
Hi. How to define owner occupied property from non- owner occupied? If one has 2 properties under his or her name & did not rent out any one of the properties, does he or she pay owner occupied property for both? Kindly enlighten. Thanks.
https://www.iras.gov.sg/irashome/page04.aspx?id=2378
Property tax is payable at 10% of the Annual Value (AV) regardless of whether the property is let out, vacant or occupied.
Owner occupiers of residential properties may pay concessionary owner-occupier tax rates based on the Annual Values (AVs) of your building as follows: (refer to website).
The concessionary tax rates can only be applied to one home owned and occupied by an individual or a married couple. If a married couple were to owner-occupy two homes even though each home is separately owned by each individual and not jointly owned by the couple, the owner-occupier tax rates can only apply to one of the homes.
East Lover
18-09-13, 09:19
I think your project could be approved for TOP on 29 May.
You can claim back the property tax from 29 May to the day you collected the key, from developer.
I did that. just ask your lawyer to send a request, few weeks later you will get a cheque from developer.
Silly Question from me, a newly property noob.
Just got my first property tax notice from IRAS, my top is in jun but I pay property tax from jun-dec as whole year calculation. Why government no prorate? I was also taxed from 29 may till 3 jun for $39? Don't understand at all...
You will only have one address in your I/C. That will be the owner-occupied property.
Many thanks for the enlightenment. In that case, I better register the address with the higher AV to my I/C. Thanks again.
https://www.iras.gov.sg/irashome/page04.aspx?id=2378
Property tax is payable at 10% of the Annual Value (AV) regardless of whether the property is let out, vacant or occupied.
Owner occupiers of residential properties may pay concessionary owner-occupier tax rates based on the Annual Values (AVs) of your building as follows: (refer to website).
The concessionary tax rates can only be applied to one home owned and occupied by an individual or a married couple. If a married couple were to owner-occupy two homes even though each home is separately owned by each individual and not jointly owned by the couple, the owner-occupier tax rates can only apply to one of the homes.
Many thanks. I understand better now (after reading your reply). Regards.
princess_morbucks
18-09-13, 09:54
Many thanks for the enlightenment. In that case, I better register the address with the higher AV to my I/C. Thanks again.
FYI.
If you have a HDB and a private property, but is not renting out the HDB.......
"If you own both a HDB flat and a private residential property, the owner-occupier tax rates will automatically apply to the HDB flat. This is because an owner of a HDB flat is required to use it for owner-occupation."
https://www.iras.gov.sg/irashome/page04.aspx?id=2378
FYI.
If you have a HDB and a private property, but is not renting out the HDB.......
"If you own both a HDB flat and a private residential property, the owner-occupier tax rates will automatically apply to the HDB flat. This is because an owner of a HDB flat is required to use it for owner-occupation."
https://www.iras.gov.sg/irashome/page04.aspx?id=2378
tis is not necc true.
my fwen applied for her condo to be applied using owner-occupier tax rates & she got it. so her hdb pay 10% hahaha :D
princess_morbucks
18-09-13, 10:05
tis is not necc true.
my fwen applied for her condo to be applied using owner-occupier tax rates & she got it. so her hdb pay 10% hahaha :D
Is she renting out her HDB ?
Is she renting out her HDB ?
nope, both for self stay.
issit becos both r not rented out?
I was wondering if I have 2 ppty, stay in A and rent out B. Can we apply the lower rate on the rented one?
princess_morbucks
18-09-13, 10:14
nope, both for self stay.
issit becos both r not rented out?
I was wondering if I have 2 ppty, stay in A and rent out B. Can we apply the lower rate on the rented one?
Strange......
http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyEligibility
Singapore Citizen flat owners and occupiers must continue to stay in their HDB flat after the purchase of the private residential property unless prior approval from HDB is obtained to sublet the whole flat.
Strange......
http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyEligibility
Singapore Citizen flat owners and occupiers must continue to stay in their HDB flat after the purchase of the private residential property unless prior approval from HDB is obtained to sublet the whole flat.
but she din sublet her hdb mah, wat's there to be strange abt? :confused:
princess_morbucks
18-09-13, 10:25
but she din sublet her hdb mah, wat's there to be strange abt? :confused:
If she din sublet her HDB, by right, she is supposed to stay in the HDB flat.
Therefore the concessionary property tax is supposed to be applied to the HDB and not the pte ppty.
If she din sublet her HDB, by right, she is supposed to stay in the HDB flat.
Therefore the concessionary property tax is supposed to be applied to the HDB and not the pte ppty.
by default it is. she juz tried her luck & wrote in to request for it to be applied to the condo & she got it.
btw, some ppl who had done tat taught her one ok, tat means hers is not a special case.
princess_morbucks
18-09-13, 10:35
by default it is. she juz tried her luck & wrote in to request for it to be applied to the condo & she got it.
btw, some ppl who had done tat taught her one ok, tat means hers is not a special case.
Thanks for sharing!
So it is possible to try and ask.
By sharing this info, you may have helped some people to save some money :).
Acalyposeisdonian
18-09-13, 11:46
I think your project could be approved for TOP on 29 May.
You can claim back the property tax from 29 May to the day you collected the key, from developer.
I did that. just ask your lawyer to send a request, few weeks later you will get a cheque from developer.
Thank you thank you, this is good experience that I learnt, from you! :)))
If you sublet your whole flat with approval from HDB, you can pay 10% AV on the HDB and owner-occupier AV on your private residence.
The key is "prior approval from HDB to sub-let the whole flat". Apply on the HDB website.
If you sublet your whole flat with approval from HDB, you can pay 10% AV on the HDB and owner-occupier AV on your private residence.
The key is "prior approval from HDB to sub-let the whole flat". Apply on the HDB website.
Hi sis,
From my conversion with IRAS 2 years ago...i was informed that the HDB will be 4% and my pc 10% regardless I live in PC or HDB....So may I know whether have you done it before? Or it's a new updated information from IRAS?
Hi sis,
From my conversion with IRAS 2 years ago...i was informed that the HDB will be 4% and my pc 10% regardless I live in PC or HDB....So may I know whether have you done it before? Or it's a new updated information from IRAS?
I have done it before.
Hi sis,
From my conversion with IRAS 2 years ago...i was informed that the HDB will be 4% and my pc 10% regardless I live in PC or HDB....So may I know whether have you done it before? Or it's a new updated information from IRAS?
http://www.iras.gov.sg/irasHome/page_ektid14102.aspx
4. When you sublet your flat/rooms
If you rent out the entire flat, the owner-occupier tax rates will be withdrawn from the date of letting. Your flat will be taxed at the standard tax rate of 10%. If your tenant has stamped (http://www.iras.gov.sg/irasHome/page04.aspx?id=2132) the tenancy agreement, you do not need to notify IRAS of the letting.
Any kind souls pls kinda advise..
Scenario
Owner staying in HDB and bought a pte condo pty in 2009, TOP in Aug'12. However, the owner did not occupy the pty. Instead, he managed to sell it 3 months later (i.e. Nov'12) after TOP. Now, the new buyer requested for the monies which IRAS tax this new buyer for the months of Aug'12 to Nov'12. Of course, beyond Nov'12 to now, the buyer has to pay because it is occupied by his family.
Question: Must the seller now reimburse this buyer for the 3 mths pty tax- which the seller intend to sell the pty, and has no intention to occupy ? Can the seller claim for relief of vacant pty or pay the buyer first, later claim for relief or what? There is no intention of staying in the pte pty, so I dun see a reason why owner has to pay pty tax ?:beats-me-man:
Your lawyer should have taken care of this....:confused::confused::confused:
http://www.iras.gov.sg/irasHome/page04.aspx?id=2380
Any kind souls pls kinda advise..
Scenario
Owner staying in HDB and bought a pte condo pty in 2009, TOP in Aug'12. However, the owner did not occupy the pty. Instead, he managed to sell it 3 months later (i.e. Nov'12) after TOP. Now, the new buyer requested for the monies which IRAS tax this new buyer for the months of Aug'12 to Nov'12. Of course, beyond Nov'12 to now, the buyer has to pay because it is occupied by his family.
Question: Must the seller now reimburse this buyer for the 3 mths pty tax- which the seller intend to sell the pty, and has no intention to occupy ? Can the seller claim for relief of vacant pty or pay the buyer first, later claim for relief or what? There is no intention of staying in the pte pty, so I dun see a reason why owner has to pay pty tax ?:beats-me-man:
There is no intention of staying in the pte pty, so I dun see a reason why owner has to pay pty tax ?:beats-me-man:
huh what kind of logic is this ? owner must pay pty tax for the period from TOP till the day he sold. For this 3 months, whether owner "has intention to stay" is totally irrelevant. "Owner occupying" or not just determines what rate it used to compute the tax. In fact if it is not staying, tax higher at 10%. The buyer has every right to claim the tax for this 3 months from the seller.
Any kind souls pls kinda advise..
Scenario
Owner staying in HDB and bought a pte condo pty in 2009, TOP in Aug'12. However, the owner did not occupy the pty. Instead, he managed to sell it 3 months later (i.e. Nov'12) after TOP. Now, the new buyer requested for the monies which IRAS tax this new buyer for the months of Aug'12 to Nov'12. Of course, beyond Nov'12 to now, the buyer has to pay because it is occupied by his family.
Question: Must the seller now reimburse this buyer for the 3 mths pty tax- which the seller intend to sell the pty, and has no intention to occupy ? Can the seller claim for relief of vacant pty or pay the buyer first, later claim for relief or what? There is no intention of staying in the pte pty, so I dun see a reason why owner has to pay pty tax ?:beats-me-man:
Regardless whether u stay or don't stay, u still need to pay property tax.So in this scenario, the seller has to pay for the 3mths tax which the buyer is claiming from.
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