Most owners of three-room and also larger Real estate as well as Advancement Board (HDB) apartments will certainly have to deal with greater real estate tax next year.
This comes as the Inland Income Authority of Singapore (INDIVIDUAL RETIREMENT ACCOUNTS) revealed on Wednesday (1 December) that the annual worths (AVs) of HDB flats will be changed upwards by 4% to 6%, in accordance with the walk-in market leasings.
To take effect from 1 January 2022, the revision is part of the authority’s annual review of buildings to figure out real estate tax payable.
” The real estate tax payable is acquired by increasing the property tax price with the AV of the residential property,” stated IRAS.
With the alteration, all one- and two-room owner-occupiers will certainly not be needed to pay real estate tax.
Similarly, one in three three-room owner-occupiers of HDB apartments will not also be called for to pay such tax.
Meanwhile, around 65% of three-room owner-occupiers “will certainly each pay between $8 and $14 even more annually, while the four-room, five-room and executive apartments owner-occupiers will certainly each pay between $21 and also $26 even more annually for property tax in 2022″.
IRAS explained that the AV is the home’s estimated annual rental fee if it were rented and also is figured out based on similar residential properties’ market rents.
” The AVs of HDB apartments had actually remained the same since its last alteration in 1953 condo. However, with the increasing market rental fees of HDB flats in 2021, the AVs of all HDB flats will require to be changed upwards from 1 January 2022,” it stated.
It directed that owner-occupiers appreciate concessionary property tax prices of between 0% and also 16%, while those who rent their flats face real estate tax prices of between 10% and also 20%.
” The tax obligation prices are dynamic, with higher value residential or commercial properties being strained at higher rates,” said IRAS.
” The appropriate tax obligation prices for HDB apartments are up to 4% for owner-occupied apartments and also 10% for non-owner-occupied apartments.”
The property tax expenses will be received by the homeowner by end-December this year.
IRAS advised homeowners to pay their property tax for the following year by 31 January 2022.
“There will certainly be a 5% penalty enforced for property owners who stop working to pay or have actually not set up to pay their tax obligation using GIRO installments by the due day,” it said.
Those facing monetary troubles can approach IRAS for assistance, it included.