Income Tax - 15% deemed cost for Gross Rental

[richwang]

The super efficient Singapore government has introduced 15% deemed cost for gross rental.
Just one clarification:
Does the 15% includes property tax?
If yes, it may not be enough.
If no, it is about right. (maintenance fees, agent fees, etc).

Thanks,
Richard

[eric3417]

Property Tax can be offset against rental receivable?!?

[Arcachon]

Yes. include maintenance fees, agent fees, mortgage interests pay but not cash out.

Also, you can reduce it by 50% to your wife. My wife has to pay Tax though she doesn't work.

[bargain hunter]

5.2 The amount of deemed expenses allowable in respect of a residential
property is 15% of the gross rental income. This amount of deemed
expenses is considered to be generally in line with the amount of common
rental expenses (such as property tax, property maintenance fees and
minor repairs) that a landlord will incur.

mortgage interest can be claimed in addtion to this 15%.

[bargain hunter]

https://www.iras.gov.sg/irashome/uploadedFiles/IRASHome/e-Tax_Guides/e-Tax%20Guide_IIT_Simplification_of_Claim_of_Rental_Expenses_for_Individuals.pdf

just to put the 2 points together:

5 Tax Change with effect from YA 2016

5.1 To simplify tax filing and ease the burden of record keeping for taxpayers, it
was announced in the Budget 2015 that with effect from YA 2016, an
individual may opt on a yearly basis to deduct an amount of deemed
expenses, in lieu of the actual amount of deductible expenses incurred,
against his passive rental income from the letting of a residential property in
Singapore. An individual who has claimed an amount of deemed expenses
against his rental income can in addition, make a claim for deduction on
allowable interest expenses, if any.

5.2 The amount of deemed expenses allowable in respect of a residential
property is 15% of the gross rental income. This amount of deemed
expenses is considered to be generally in line with the amount of common
rental expenses (such as property tax, property maintenance fees and
minor repairs) that a landlord will incur.

[proud owner]

https://www.iras.gov.sg/irashome/uploadedFiles/IRASHome/e-Tax_Guides/e-Tax%20Guide_IIT_Simplification_of_Claim_of_Rental_Expenses_for_Individuals.pdf

just to put the 2 points together:

5 Tax Change with effect from YA 2016

5.1 To simplify tax filing and ease the burden of record keeping for taxpayers, it
was announced in the Budget 2015 that with effect from YA 2016, an
individual may opt on a yearly basis to deduct an amount of deemed
expenses, in lieu of the actual amount of deductible expenses incurred,
against his passive rental income from the letting of a residential property in
Singapore. An individual who has claimed an amount of deemed expenses
against his rental income can in addition, make a claim for deduction on
allowable interest expenses, if any.

5.2 The amount of deemed expenses allowable in respect of a residential
property is 15% of the gross rental income. This amount of deemed
expenses is considered to be generally in line with the amount of common
rental expenses (such as property tax, property maintenance fees and
minor repairs) that a landlord will incur.



Bro ...

say for landed house ... just as an example,... i repaint the house for the new tenant ...

15% where got enough?

it this 15% a cap ?

[bargain hunter]

Bro ...

say for landed house ... just as an example,... i repaint the house for the new tenant ...

15% where got enough?

it this 15% a cap ?

it seems like we can opt in or opt out on a yearly basis. if we feel that this deemed 15% is not enough, we opt out but be sure to have all the supporting documents when u declare deductions of more than 15%.

[amk]

Bro ...

say for landed house ... just as an example,... i repaint the house for the new tenant ...

15% where got enough?

it this 15% a cap ?

1st of all "repaint" claimable meh ? :)
15% is not a cap. You either choose this 15% for which IRAS won't ask you for proof, or do the usual filing just like before, for which you are supposed to keep evidence of all claims for 5ys.
15% is of course low, that's why IRAS dun need any evidence. that's more like a floor.

[proud owner]

1st of all "repaint" claimable meh ? :)
15% is not a cap. You either choose this 15% for which IRAS won't ask you for proof, or do the usual filing just like before, for which you are supposed to keep evidence of all claims for 5ys.
15% is of course low, that's why IRAS dun need any evidence. that's more like a floor.



My landed has always been tenanted.

i repainted the exterior once .... just before a new tenant moved in..


i did claim....

[teddybear]

Theoretically can, but there is a caveat: You must write in to IRAS to request to do so (and you can be rejected for changing)!
So better make up your mind from the start and stick to it! :cheers1:


it seems like we can opt in or opt out on a yearly basis. if we feel that this deemed 15% is not enough, we opt out but be sure to have all the supporting documents when u declare deductions of more than 15%.

[DC33_2008]

Can we apply this 15% rule for a particular property amongst a portfolio of properties of tax payer?
1st of all "repaint" claimable meh ? :)
15% is not a cap. You either choose this 15% for which IRAS won't ask you for proof, or do the usual filing just like before, for which you are supposed to keep evidence of all claims for 5ys.
15% is of course low, that's why IRAS dun need any evidence. that's more like a floor.

[JNSYN]

Can we apply this 15% rule for a particular property amongst a portfolio of properties of tax payer?

No, you will have to claim either actual expenses (excluding interest expenses) or deemed expenses for all the tenanted residential properties.

https://www.iras.gov.sg/irashome/uploadedFiles/IRASHome/e-Tax_Guides/e-Tax%20Guide_IIT_Simplification_of_Claim_of_Rental_Expenses_for_Individuals.pdf

[amk]

My landed has always been tenanted.

i repainted the exterior once .... just before a new tenant moved in..


i did claim....

Technically, the 1st paint is not claim able, just like first renovation before renting is not claimable. The subsequent paint can then be claimed under maintenance , not repair. But then *maintenance* between tenancy is fuzzy... ("maintenance" is supposed to be during tenancy period) Iras exercise reasonable judgment on the maintenance during this vacancy period. If you have a vacancy period more than 3months, whatever *maintenance* done within, is not automatically claim able. U r supposed to show IRAS evidence of endeavor if it ever asks you so. Less than 3 months, it routines grants claim though

[amk]

Can we apply this 15% rule for a particular property amongst a portfolio of properties of tax payer?

No. It's all or none.
I already did it. U can only check/uncheck the 15% as a global option. Once unchecked, all pties must enter individual items. If it is checked, all pties cannot enter anything and you have the fixed 15% applied.
IRAS is quit clever lah. U dun get to maximize the claim.

[DC33_2008]

Not worth it for me. Only one property benefits from this scheme and just 3% only.
No. It's all or none.
I already did it. U can only check/uncheck the 15% as a global option. Once unchecked, all pties must enter individual items. If it is checked, all pties cannot enter anything and you have the fixed 15% applied.
IRAS is quit clever lah. U dun get to maximize the claim.

[proud owner]

Technically, the 1st paint is not claim able, just like first renovation before renting is not claimable. The subsequent paint can then be claimed under maintenance , not repair. But then *maintenance* between tenancy is fuzzy... ("maintenance" is supposed to be during tenancy period) Iras exercise reasonable judgment on the maintenance during this vacancy period. If you have a vacancy period more than 3months, whatever *maintenance* done within, is not automatically claim able. U r supposed to show IRAS evidence of endeavor if it ever asks you so. Less than 3 months, it routines grants claim though

the house was tenanted to 3 different tenants ...over a 8 yr period ...

i repainted it on the 5th yr just before the 3rd tenant moved in ...

[DC33_2008]

Thanks for the pdf file.
No, you will have to claim either actual expenses (excluding interest expenses) or deemed expenses for all the tenanted residential properties.

https://www.iras.gov.sg/irashome/uploadedFiles/IRASHome/e-Tax_Guides/e-Tax%20Guide_IIT_Simplification_of_Claim_of_Rental_Expenses_for_Individuals.pdf