Revision in Annual Values of HDB Flats in 2013
Property Tax Rebate for Owner-Occupied HDB Homes Will Reduce Impact of Increase in Property Tax
All one-room and two-room owner-occupiers of HDB homes will not pay property tax in 2013, similar to 2012. For majority of other HDB flat types, the property tax bill for 2013 will increase by between $40 to $50, after taking into account a new $40 rebate.
The increase in property tax comes after the revision of Annual Values (AVs) of HDB flats with effect from 1 January 2013, reflecting the rise in market rentals. To mitigate the increase in the property tax payable by lower and middle income households as a result of the AV revision, the Government will give a one-off rebate of $40 to owner-occupied HDB flats.
AV Increase for HDB Flats
The Inland Revenue Authority of Singapore (IRAS) reviews the AVs of all properties - including HDB flats - annually. The AV, which is based on the estimated annual market rent of a property if it were to be let out, applies to all homes, including owner-occupied homes. It is used as a basis to compute the property tax payable.
Property tax is calculated at 10% of the AV for non owner-occupied homes. For owner-occupied homes, the property tax payable is calculated based on the concessionary tax rates as follows:
| AV of Owner-Occupied Residential Properties | Concessionary Tax Rate (%) |
|---|---|
| First $6,000 | 0 |
| Next $59,000 | 4 |
| Amount exceeding $65,000 | 6 |
Since the last revision of AVs of all HDB flats on 1 January 2012, market rentals of HDB flats have risen by 8% 13 %. Accordingly, the AVs of all HDB flats will be revised from 1 January 2013.
One-Time Owner-Occupied HDB Flat Rebate for 2013
To mitigate the impact of the increase in property tax payable, all owners of owner-occupied HDB flats will be given a one-time rebate of $40. It will be automatically set-off against the property tax payable in 2013. This rebate will not apply to non owner-occupied HDB flats which are currently taxed at 10%. 94% of HDB flat owners will receive this rebate.
Details of Property Tax Changes for Owner-Occupied HDB Homes
All one- and two-room HDB owner-occupiers will not need to pay any property tax in 2013 as their revised AVs remain below $6,000. The revised property tax bills of other owner-occupied flat types, after taking into account the property tax rebate, are shown below:
| 3-Room Flats | 4-Room Flats | 5-Room Flats | Executive Flats | |
|---|---|---|---|---|
| Annual Property Tax Payable in 2012 (after rebate) | $0 - 41 | $77 - 125 | $125 - 173 | $137 - 185 |
| Annual Property Tax Payable in 2013 after $40 Owner-Occupied HDB Rebate | $44 - 92 | $128 - 176 | $164 - 212 | $188 - 236 |
| Increase in Property Tax after $40 Owner-Occupied HDB Rebate | $44 - 51 | $39 - 51* | $39 - 51 | $39 - 51 |
* The majority of 4-room owner-occupied HDB Flats will see an increase of $39 to $51 in property tax. A small percentage of owner-occupied 4-room flats will see a marginally higher increase due to more significant increases in Annual Values of their homes.
Property Tax Payment Is Due by 31 January 2013
HDB flat owners will receive their property tax notices and bills by the end of this year. Property tax has to be paid by 31 January 2013. IRAS encourages property owners to join the GIRO payment scheme for property tax to enjoy up to 12 interest-free monthly instalments. Taxpayers who have bank accounts in DBS/POSB or OCBC can apply for GIRO via Internet Banking and receive instant approval.
There will be a 5% penalty imposed for owners who fail to pay or have not arranged to pay by 31 January 2013. Owners facing financial difficulties are advised to contact IRAS before the due date to discuss a suitable payment plan.
An e-Tax Guide on ‘Revision of Annual Values for HDB Flats from 1 January 2013’ can be found in www.iras.gov.sg. Taxpayers with enquiries may call 1800-356 8300 or e-mail [email protected].
Ministry of Finance and Inland Revenue Authority of Singapore
Appendix:
Appendix 1: Illustration of Property Tax Computation (PDF, 21KB)