9 May 2012
The Guide clarifies the property tax treatment of common property, including common areas and facilities, atrium space, as well as the maintenance office(s) in both residential and non-residential buildings.
Under the Property Tax Act, all houses, buildings, lands and tenements are subject to tax. Hence if any part of the common property is let or licensed out or is capable of being let or licensed out separately, it is subject to property tax. The Chief Assessor may ascribe an Annual Value to this part of the common property.
Where any parts of the common property are let or licensed out instead of being held for enjoyment in common by all occupants, the Chief Assessor would ascribe separate Annual Values to these parts.
Where parts of the common property or facility are used and enjoyed by all occupants, such as swimming pools, tennis courts, gymnasiums and car parks, the Chief Assessor may choose not to ascribe Annual Values separately to these parts.
The administrative concession would not be extended to any part of the common property that is not held for enjoyment in common by all owners/occupants.
Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website. Visit www.iras.gov.sg for more information.