Nowadays, there are many investors who go to Singapore to buy houses, but they may have to collect taxes after buying a house? In fact, the real estate tax in Singapore is mainly levied on real estate such as land, apartments, and houses. So how should property tax be levied in Singapore? I have also compiled relevant information for you, let’s take a look!

How to levy property tax in Singapore and calculate the annual value

Real estate in Singapore The tax is calculated and levied annually based on the annual value of the property. The "annual value" mentioned here is an innovative move in real estate management in Singapore, and it is necessary to introduce it to everyone in detail. The so-called annual value (meaning the annual property value of the house) refers to the comprehensive income calculated by the Singapore Inland Revenue Department based on the net rental income that the house can earn each year, that is, the annual rent minus property management, furniture and maintenance costs. It’s important to note that the rental estimates here are only for one room, not the entire house.

In addition, the annual value of the house is comprehensively assessed by the tax department with reference to factors such as the weather, the condition of the house, location, supporting facilities and other factors, and is updated every time.

How to levy property tax in Singapore

Singapore has adopted a more flexible approach to the tax rate of property tax, adopting a low tax rate of 4% for self-occupied properties, while other All purpose-built properties are levied at a uniform rate of 10%. Among them, self-occupied residents, residents of government rental houses, and residents of small apartments can further enjoy other preferential treatment or discounts. Therefore, the property taxes paid by ordinary residents are very small.

How to levy property tax in Singapore?

1. If the annual value of the property is less than 6,000 Singapore dollars, property tax is exempted;

2. The annual property tax The value is 6,900 Singapore dollars, the first 6,000 is exempted, and the next 900 is charged at 4%, that is, 36 Singapore dollars (approximately 180 yuan);

3. If the annual value of the property exceeds 24,000 Singapore dollars, the excess amount 6 % property tax.

An example of how to collect property tax in Singapore

After introducing the calculation method of Singapore property tax tax rate, the following will use an example to calculate the property tax collection situation of ordinary Singaporeans.

For example, if you own a property with two bedrooms and one living room of 70 square meters (usable area), and assume that the annual value of the property is SGD 6,900.

1. If the owner does not live here, whether he rents it out or lends it to others, then the property tax is 10% of the annual value of the property, that is, 900*10%=90 Singapore dollars, which is approximately 437 yuan;

2. If the property is owner-occupied, then the property tax is 4% of the annual value, that is, 900*4%=36 Singapore dollars, which is approximately 180 yuan.