How to levy Singapore property tax?

There are many investors who go to Singapore to buy a house now. May they have to pay taxes after buying a house? In fact, Singapore property tax is mainly levied on real estate such as land, apartments and houses. How should Singapore property tax be levied? I also compiled the relevant information for you. Let's have a look!

How to collect the property tax in Singapore and how to calculate the annual value?

Singapore's property tax is calculated and levied once a year according to the annual value of the property. The "annual value" mentioned here is an innovative move in Singapore's real estate management, so it is necessary to give you a detailed introduction. The so-called annual value (referring to the annual output value of the house) refers to the net income obtained by the Singapore Inland Revenue Department according to the annual rent of the house, that is, the comprehensive income obtained after deducting the costs of property management, furniture and maintenance. It is worth noting that the rent estimate here is only for one room, not for the whole house.

In addition, the annual value of the house is comprehensively evaluated by the tax authorities with reference to the quality of the year, the old and new degree of the house, the location, supporting facilities and other factors.

What is the tax rate of Singapore property tax?

In terms of property tax rate, Singapore has adopted a more flexible approach, with a low tax rate of 4% for self-occupied properties and a unified levy of 10% for properties for other purposes. Among them, self-occupied residents, government leased residents and small-sized residents can further enjoy other preferential or discounts. Therefore, ordinary residents pay little property tax.

How to levy property tax in Singapore and its collection standards

1, the annual value of the property is less than S $6,000, and the property tax is exempted;

2. The annual value of the property is S $6,900, with the front 6,000 exempted and the back 900 charged at 4%, that is, S $36 (about 180 RMB);

3. If the annual value of the property exceeds S $24,000, the property tax of more than 6% shall be paid.

An example of how to collect property tax in Singapore

After introducing the calculation method of Singapore property tax rate, we will use examples to calculate the property tax collection of ordinary Singaporeans.

For example, if you own a 70-square-meter (usable area) two-bedroom and one-bedroom property, suppose the annual value of the property is S $6,900.

1. If the owner doesn't live here, the property tax is 10% of the annual value of the property, that is, 900 *10% = S $90, which is about RMB 437.

2. If it is a self-occupied property, the property tax is 4% of the annual value, that is, 900 * 4% = S $36, which is about 180 RMB.