Rise in Annual Values for HDB flats from 1 January 2012 – IRAS issues guidance

4 December 2011

The Annual Values (AV) of all HDB flats which was last revised 1 January 2010, will now be revised with effect from 1 January 2012.

However, a one-off rebate of $55 will be given to Owner-Occupied HDB flats for the year 2012.

IRAS has since released an e-tax Guide, “Revision of Annual Values for HDB Flats from 1 January 2012” on 2 December 2011. This guide explains AV increase, provides examples of the rebate given, and contains a set of Frequently Asked Questions.

The AV is the estimated annual market rent of a property as if it was rented out, and 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 HDB Flats, property tax payable is calculated at the concessionary tax rates as follows:

  • First $6,000 = 0%
  • Next $59,000 = 4%
  • Amount exceeding $65,000 = 6%

More on the e-tax Guide can be found here.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website.