Where can I pay my property tax?
Property tax is applied to owned properties or real estate transactions. It may be annual or as stamp duty. IRAS (Inland Revenue Authority of Singapore) looks after the tax payment.
As such, you can log in to your myTax Portal at IRAS’s website to manage and access your tax transactions with IRAS at your convenience.
What types of property taxes are out there in Singapore?
- Ownership tax
- Buyer’s Stamp duty (BSD)
Ownership tax rates
Property tax is determined by multiplying the Annual Value (AV) of the property with the property tax rate. The property tax rate in Singapore is progressive and includes two different tax rates:
- Owner-occupied properties
This includes HDB flats, condominiums, or other residential properties where you must be physically present.
- Non-occupied residential properties
It includes residential properties that are rented and are considered investment assets. They are taxed more than owner-occupied properties (like condominiums and HDB flats).
What is Buyer’s Stamp Duty (BSD)?
When you purchase or lease a property you must pay stamp duty for the legal documents when you purchase or lease a property. In some cases, these taxes will also include an Additional Buyer’s Stamp Duty (ABSD).
The amount of tax you have to pay is based on the property’s value, with higher-priced properties incurring a greater tax. At the time of writing, the tax rate for residential properties is 1% for the first S$180,000, 2% for the next S$180,000, 3% for the next S$640,000, and 4% for any amount above that. The payment amount is rounded to the nearest dollar.
What is Additional Buyer’s Stamp Duty (ABSD)?
The ABSD is a type of tax that is imposed on the acquisition of residential properties in Singapore. This tax only applies to Singapore Citizens and foreigners purchasing multiple properties, unlike the Buyer’s Stamp Duty.
Singapore Citizens who purchase a second property will be charged a 12% fee, while third and any subsequent purchases will be charged a 15% fee. For Singapore Permanent Residents, the tax rate is 5% for the initial purchase and 15% for subsequent purchases. International buyers are charged a 20% fee for each property they purchase. Note that these rates tend to change when new cooling measures are announced, so do check the latest updates on primary sources like the Inland Revenue Authority of Singapore (IRAS) site.
It’s important to note that the ABSD tax is applied in addition to the BSD tax.
Are there any penalties on late payment of property tax?
Any sudden property tax bills that arise from new or updated assessments must be settled within 30 days of the bill’s issuance. On the other hand, yearly payments are expected to be paid by the 31st of January each year.
If the annual property tax payments are not made, or the taxpayer’s General Interbank Recurring Order (GIRO) arrangement is terminated, a Notice of Pay will be sent out. The Notice will itemise the outstanding tax amount and the 5% penalty imposed on the unpaid tax. Subsequently, payment must be made within 14 days.
Tax Exemption
Under the Property Tax Act, a building or a section of it is only exempted from tax if it is exclusively used for certain purposes such as;
- Open religious worship
- Government-funded public schools
- Charity causes, or activities that promote Singapore’s social development.
Even if only some parts of the building qualify for an exemption, a partial exemption may be granted.
