We thank Mr Colin Tan Ngak Leng for his feedback in his letter 'Errors in private property tax levied' in myPaper on 14 December 2011.

The annual values of all properties are determined on the same basis using market rents. However, a residential home may be taxed at concessionary tax rates if the owners apply for the concession and confirm that they live in that property. The concession can only be applied to one residential property owned by a married couple at any one time. IRAS notifies all new home owners of this Owner-Occupier Concession and invites them to apply for it if they are eligible.

In Mr Tan's case, the first notice was sent to him soon after he moved into his current residence in 2009. Subsequently, Mr Tan would have received two valuation notices in April 2010 and August 2011 informing him of adjustments to his property's annual value, together with information on the owner-occupier concessionary tax rates. In addition, Mr Tan would have received a brochure on the new owner-occupier progressive tax rates together with his 2011 Property Tax Bill.

We have since explained the above to Mr Tan and contacted his parents on their eligibility for the Owner-Occupier Concession.

As HDB flats are generally owner-occupied in the initial years, the Owner-Occupier Concession is automatically granted to newly purchased HDB homes. Since 1 January 2011, we have also enhanced our system and processes to extend the automatic granting of the Concession to newly purchased private homes, for owners of one residential property intended for occupation.

Members of the public who would like more information on the owner-occupier concessionary tax rates can visit the IRAS website Property Tax Rates for Owner-Occupied Residential Properties. Eligible owner-occupiers can apply for the concessionary tax rates online through myTax Portal (https://mytax.iras.gov.sg/). They may also call IRAS at 1800-356 8300, or email us at [email protected] for assistance.