Certain income need to declare, just declare.....
You want to siam, the most siam few years nia.....
IRAS is famous for retrieving "old debt".....
After you collect rental song song for 2-3 years, than bo
declared.....
Suddenly received a letter from IRAS, asking for arrear for that
2-3years, than the amount confirm heart attack type, than start to
kbkp our Goberment knnbccb lor......
Rental income from the letting of property in
Singapore is subject to income tax, while your property is
subject to property tax. Your rental
income includes rent of the premises, maintenance, furniture
and fittings. The net amount after deductions for allowable
expenses (such as property tax) is taxable.
Generally, forfeiture of rental deposit is also considered as your
Gross Rent. However, depending on the reason for the forfeiture of
the rental deposit, IRAS may consider to exclude it as part of the
Gross Rent. Therefore, please furnish the reason for the forfeiture
of the rental deposit when filing your tax return.
Use our Rental
Calculator (254KB) to compute your rental income.
Rental income is taxable when it is due and payable to the
property owner, and not the date of actual receipt.
Your tenant rented your property from Oct to Dec 2013. He paid the
rent for this period in Jan 2014, the following year.
You need to declare the rent for Oct to Dec 2013 in the Year of
Assessment (YA) 2014 as the rent was due to you in 2013.
The rental income is taxed on the sole owner. It does not matter
whether the sole owner or a third party receives the rent.
The rental income is taxed on all the joint owners based on their
share in the property. It does not matter which party receives the
rent or whether the owners paid for the property.
This also applies to rental loss. The rental loss is apportioned to
joint owners based on their share in the property.
For an expense to be deductible from rental income derived in
Singapore, the expense must be incurred:
Type of ExpenseClaimable ExpensesNon Claimable Expenses Housing loans
Interest paid on the loan or mortgage taken to purchase the
property which is rented out. (See Note 1)
1. Repayments of the principal loan or mortgage
amount (monthly instalments)
2. Penalty imposed by banks for late repayment of loans
Property Tax Incurred during
the rental period (e.g. property tax paid for year 2013, on
property rented out in year 2013)
1. Incurred outside the rental period
2. Penalty imposed for late payment or non-payment of property
tax
3. Brought forward balance from previous year’s property tax
Fire Insurance Premiums
paid on fire insurance Capital sum assured on property Repairs Repairs done to restore the property to its
original state
1. Initial repairs
2. Repairs done which results in improvement/additions and
alterations
3. Repairs incurred outside rental period
Maintenance Cost of maintaining
the property (e.g. painting, pest control, monthly maintenance
charges to management corporations) Cost of renovation, additions,
alterations to the property (e.g. extension of car porch,
construction of drains, cementing of walls and floors, installation
of window grilles) Costs of securing tenant
1. Agent's commission, advertising, legal expenses and stamp
duties for gettingsubsequent tenants
2. Agent's commission, advertising, legal expenses and stamp duties
for getting the first tenant of
asubsequent property is deductible against
the rental income of that property.
Agent's commission, advertising, legal expenses and stamp duties
for getting the first tenant (see Note 2) Costs of
supervision or management fees
Costs in engaging a third party (e.g. property agent / company) to
carry out activities such as ensuring rentals are paid promptly,
maintaining and upkeeping of the properties and attending to
tenants queries and complaints.
Where the management fees is paid to a related party (e.g.
relatives or own company), owners need to justify that the amount
paid is at market rate and commensurate with the services
rendered.
Furniture and Fittings
1. Replacements of furnishings (e.g. furniture, fixtures,
electrical appliances) to its original state
2. Hiring of furniture
1. Depreciation of furnishings (e.g. furniture, fixtures,
electrical appliances)
2. New/Improvements/Additions made to furnishings (e.g. furniture,
fixtures, electrical appliances)
Internet charges/expenses
Paid on behalf of tenant (as long as not reimbursed by tenant
subsequently).
Paid on behalf of tenant, but reimbursed by tenant subsequently.
Utility expenses Paid on behalf of tenant (as long as not
reimbursed by tenant subsequently). Paid on behalf of tenant, but
reimbursed by tenant subsequently. Expenses incurred on properties
that are not generating rental income N.A. The relevant expenses
incurred on such properties of (e.g. rent, utilities, maintenance,
etc) cannot be claimed against the rental income generated from
other properties as the expenses are capital and private in
nature.
Note 1: Illustration:
(a) Loan obtained (by mortgaging Property A) to purchase Property
B.
- The loan interest is deductible provided
rental income is generated from Property B.
(b) Loan obtained (by mortgaging Property A) to be used for other
purposes e.g. to purchase another property for residential purpose
or for business, etc.
- The loan interest is not deductible
against rental income of Property A as the loan is not incurred to
purchase the said property.
(c) Overdraft obtained for financing the purchase of Property A and
also for personal use.
- Only that portion of the loan interest
applicable to the amount of loan to finance the purchase of
Property A is deductible against its rental income.
(d) For interest incurred on refinanced loans, please refer to
e-Tax guide "Administrative
concession on interest incurred by taxpayers on loans to re-finance
earlier loans. or borrowings".
Note 2: As a concession, agent's commission, advertising and legal
expenses for getting the first tenant of a subsequent property is
deductible against the rental income of that property.
Some landlords may choose to rent out a portion of their property
(for e.g. 1 room) to their tenants. Landlords are required to
apportion the claimable expenses incurred based on the number of
rooms rented out.
You are living in a 4 room flat with 3 bedrooms. You sublet 1 of
the rooms to your tenant from 1 Jan to 31 Dec 2013. Your tenant
pays you rent of $600 per month. In addition, the total amount of
deductible expenses incurred is $3,000.
Your net rent is calculated as follows:
Net Rent = Gross Rent – Proportion of claimable expenses
allowed
=
$7,200 - $1,000
=
$6,200
You have to declare the gross rent of your property in
the previous year, and details of deductible expenses of each
property under ‘Other Income: Rent from property’ in your tax
return.
For property owned by more than 1 owner
All
owners of the property have to give details of the total annual
rent collected, total deductible expenses before showing each of
their share of rent.
IRAS can detect non-reporting of rental information. Landlords with
rental income should report the income in their tax returns. Those
who have not done so by 18 April, the filing deadline,
may email us.
There are penalties for submission of incorrect returns. However,
IRAS may waive the penalty if voluntary disclosure is made
within the 'grace period' of 1 year from the statutory filing
date.
Find out more about how
to report a mistake to qualify for zero penalty or lower
penalty.
If your gross rent from the letting out of properties is less than
the deductible expenses, you cannot use the rental loss to set
off against any other income (e.g. employment income) that you
may have in the same year.
Also, you cannot carry forward these losses to set
off against any other income in the future.
However, as an administrative concession, you can use the rental
loss of one property to set off against the taxable rental income
of another property in the same year if all the tenanted properties
have been rented out at market rates.
Example 3: Using the rental loss from one property to
offset the rental gain from another property
You will be taxed on the net gain of $20,000 from these two
properties.
A married couple can transfer their rental losses between each
other.
You can only offset the amount of rental loss transferred against
your spouse's taxable rental income.
The wife can transfer $1,000 of her rental loss to be offset
against husband's rental gain.
An election has to be made by both spouses in writing on a year to
year basis, giving their names, identification numbers and
signatures.
The election can be made at any time, including the time when you
submit your income tax return. However, the election cannot be made
after 30 days from the time you or spouse receive the Notice of
Assessment, whichever is the later. Once made, the election
is irrevocable.
We will re-compute you and your spouse's assessment to take
into account the respective transfers. Any subsequent revision to
either party's tax assessment will result in a corresponding
revision to the other party's tax assessment.
To simplify the individual income tax system, the
spousal transfer scheme would be removed from Year of Assessment
2016. This would mean that a married couple can no
longer transfer their rental losses between each other after
Year of Assessment 2015.New!
Find out more about Net Annual Value
(NAV) & expenses.
