Singapore Most Exclusive Waterfront
Life-Style Living: SENTOSA COVE
RESOURCES
Tax Guidelines on Foreign Ownership of Singapore Private Residential Properties
What kind of tax do I have to pay for purchase of private residential property?
All purchasers have to pay Stamp Duty computed as :-
Stamp Duty Tax = (the purchase price x 3%) - $5,400.
For example, a $1mil SGD property
= $1,000,000 x 3% - $5,400
= $30,000 - $5,400
= $24,600
Stamp duty is payable within 14 days from the date of completion of property. For uncompleted property, you must pay the stamp duty within 14 days from issuance of Temporary Occupation Permit (TOP).
Stamp Duty Tax = (the purchase price x 3%) - $5,400.
For example, a $1mil SGD property
= $1,000,000 x 3% - $5,400
= $30,000 - $5,400
= $24,600
Stamp duty is payable within 14 days from the date of completion of property. For uncompleted property, you must pay the stamp duty within 14 days from issuance of Temporary Occupation Permit (TOP).
What are the Property Tax Rates?
The rates are:-
4% of annual value for owner-occupied properties
10% of annual value for investment and other properties
The annual value is determined by Valuation Review Board of the IRAS usually based on a average rent of similar properties. The property tax is payable upon 1 month from the completion of the purchase of property and every January subsequently.
4% of annual value for owner-occupied properties
10% of annual value for investment and other properties
The annual value is determined by Valuation Review Board of the IRAS usually based on a average rent of similar properties. The property tax is payable upon 1 month from the completion of the purchase of property and every January subsequently.
Do I have to pay capital gain tax?
Currently, there is no capital gain tax. In fact, the Singapore government encourages foreign investments in Singapore properties.
What is the tax rate for rent income ?
Rent income is taxable at 20% with effect from 2005.
QUESTIONS ON RENTAL INCOME SUBMISSION
How do I declare rent income received from my property?
You have to report the total rent received from the tenant. Total rent includes charges on the property, the furniture and fittings and service charges.
If you are claiming expenses on the property, you need to show the details of the expenses incurred only during the period of tenancy. You will be taxed on the net rent, which is the total rent less total deductible expenses.
If you are claiming expenses on the property, you need to show the details of the expenses incurred only during the period of tenancy. You will be taxed on the net rent, which is the total rent less total deductible expenses.
What expenses are deductible from my rent/net annual value (NAV) for income tax purposes?
The following are deductible for income tax purposes.
· interest on your mortgage loan
· property tax
· fire insurance on your property
· repairs and maintenance which can include painting, pest control, and monthly maintenance charges to management corporations
· commission paid on getting a subsequent tenant
· cost of renewing a lease or getting a new tenant (except for the first tenant)
The following are NOT deductible for income tax purposes.
· mortgage or bank loan repayments
· agent's commission, advertising, legal costs, for getting the first tenant
· depreciation of furniture and fixtures
· costs of renovation, additions, and alterations to your property, for example extension of car porch, construction of drains, cementing of walls and floors, and installation of window grilles
· interest on your mortgage loan
· property tax
· fire insurance on your property
· repairs and maintenance which can include painting, pest control, and monthly maintenance charges to management corporations
· commission paid on getting a subsequent tenant
· cost of renewing a lease or getting a new tenant (except for the first tenant)
The following are NOT deductible for income tax purposes.
· mortgage or bank loan repayments
· agent's commission, advertising, legal costs, for getting the first tenant
· depreciation of furniture and fixtures
· costs of renovation, additions, and alterations to your property, for example extension of car porch, construction of drains, cementing of walls and floors, and installation of window grilles
Do I need to submit receipts and documents together with my income tax form to support my claim for deductible expenses?
You do not need to submit supporting documents together with your income tax form. You are however, required to keep these documents for 7 years for verification purposes.
If my total rent is less than my deductible expenses, do I need to report my loss in rent in the income tax form?
Yes, you have to report your total rent and details of the deductible expenses in your Income tax form even if you made a loss in rent.
Can I deduct last year's loss in rent against this year's gain in rent or against other income?
No, you cannot deduct the loss in last year's rent against this year's rent. You also cannot offset the loss in rent against any other income you may have.
Yes, you can deduct the loss in rent from property A against the gains in rent from property B if both properties are treated as a single source of income for the same calendar year.
Back To The Top