Property tax payment due by 31 January 2013

4 January 2013

HDB flat owners would have received their 2013 Valuation Notice cum Property Tax Bill by the end of December 2012.

Similar to 2012, all one-room and two-room owner-occupiers of HDB homes will not pay property tax in 2013. Property tax bill for 2013 will increase by between $40 to $50, after taking into considering a new $40 rebate for the majority of other HDB flat types. The increase in property tax comes after the revision of Annual Values (‘AV’) of HDB flats with effect from 1 January 2013.

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%

A 5% penalty will be imposed for owners who fail to pay or have not arranged to pay by 31 January 2013.

More details can be found in the IRAS e-Tax Guide, ‘Revision of Annual Values for HDB Flats from 1 January 2013’.

Source: Ministry of Finance (MOF) and the Inland Revenue Authority of Singapore (IRAS)