IRAS has accelerated its annual review of properties in view of the recent declines in the property rental market.

IRAS has reviewed a total of 116,200 properties - private residential, commercial and industrial properties - in the first quarter (Q1) of 2009, up from 31,300 properties reviewed in the same period last year.  99% or 115,400 properties that were reviewed have had their Annual Values reduced.   With the reduction of AVs and the 40% property tax rebate announced in Budget 2009, owners of these properties will pay 45% to 60% less property tax.

The Annual Values (AV)  ^[1]  of properties are reviewed by IRAS annually to ensure that they reflect prevailing rental market values for property tax computation.  Appendix 1 shows the profile of properties reviewed in Q1 2009. Of the properties with their AVs reduced, 84,900 are private residential properties, while 25,300 are offices and industrial properties.

84,900 Private Residential Properties’ AVs Reduced in Q1

The AVs of almost all (99%) of the private residential properties assessed have been reduced by 5% to 20%. Taken together with the 40% rebate, the reduction in property tax payable is about 45% to 50% for the owner-occupied residential properties.  Appendix 2 illustrates the reduction in property tax payable for an owner-occupied private residential property.

15,600 Offices’ AVs Reduced in Q1 

92% of all offices in Singapore have had their AVs lowered. The AVs of these offices have been reduced by 10% to 35%. Again, including the 40% rebate, these offices will have their property tax liabilities reduced by 45% to 60%.

9,700 Industrial Properties’ AVs Reduced in Q1

The AVs of almost all (98%) of the industrial properties assessed have been reduced by 5% to 30%. Taken together with the rebate, these industrial properties will have their property tax liabilities reduced by 45% to 60%. Appendix 3 illustrates the reduction in property tax payable for offices and industrial properties.

Upcoming review of other properties by 3Q 2009

By 3Q 2009, the AVs of all private properties, including retail properties, will be reviewed.

As for HDB flats, based on current market rentals, their AVs should be higher than the existing 2009 AVs.  In view of the poor economic conditions and uncertainties in the HDB rental trends in the coming months, IRAS has however kept unchanged the AVs of HDB flats for 2009. IRAS will continue to monitor the rental market closely and adjust the AVs accordingly.

Assistance for taxpayers with financial difficulties

Taxpayers may approach IRAS to discuss alternative payment plans, via the following modes of contact:

Issued by the Inland Revenue Authority of Singapore