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Nov 12, 2007
Annual values of properties, HDB flats to go up from Jan 1
The upward revision is to reflect market values, but 90 per cent of
all HDB flat owners will not pay more property tax in 2008 because
of tax rebates.
THE Inland Revenue Authority of Singapore (Iras) on Monday
announced that it will revise the Annual Values (AVs) of most
properties, including Housing Board flats, from Jan 1 to reflect
the significant increase in their market rates.
The AVs will be raised for all HDB flat types, with those in more
centralised and popular areas like Bishan, Bukit Timah and Marine
Parade to be set higher than other areas.
An Iras statement on Monday said the average AV increase will be 20
per cent for 1-room and 2-room flats, 25 per cent for three-room
units, 18 per cent for four-room flats, 20 per cent for
five-roomers and 18 per cent for executive flats.
But it said the increase 'does not translate to proportionate
increase in property tax actually payable, due to the property tax
rebates that have been granted by government'.
Currently, the owners of all 1-room, 2-room and 13 per cent of
three-room HDB flats do not pay any property tax because their
property tax liability has been offset by the rebates which have
been given since 1994 when the Goods and Services Tax (GST) was
introduced.
'As part of the GST Offset Package announced in Budget 2007, all
owner-occupied residential properties will be given an additional
property tax rebate of up to $100 per year in 2008 and 2009, said
the Iras statement.
'As a result, 90 per cent of all HDB flat owners will not pay more
property tax in 2008 even after the AVs of their flats will be
increased in 2008.'
It said one-room and two-room residents will not have to pay
property tax, as well as 60 per cent of those in three-room units.
The remaining 40 per cent of the three-room owners will be paying
less tax than in 2007, but about 15 per cent of the four-room,
five-room and executive flat owners will have to pay 15 per cent
more in property tax, but this will be less than $40.
Iras said the AVs of all properties, which are reviewed annually,
is to ensure that they reflect prevailing market rentable values
for property tax computation. 'This year, most AVs will be revised
upwards,' it said.
All HDB flat owners will receive their valuation notices and
property tax bills by Jan 1.
Flat owners who need to pay property tax will also receive a Guide
to Property Tax brochure explaining how the property tax payable is
calculated and how payment can be made.
Property tax for 2008 must be paid by Jan 31.
Taxpayers with enquiries on AV revision or property tax can find
more information at Iras' website at http://www.iras.gov.sg or
e-mail Iras at [email protected] or call Iras on 1800-356
8600.
