Here are the key points:
Threshold Adjustments:
The lowest threshold for annual value will be raised from $8,000 to $12,000.
The highest band will be increased from over $100,000 to over $140,0001.
Corresponding adjustments will be made for the bands in between.
Impact on Property Taxes:
Homeowners can expect to pay the same or lower property taxes assuming their property’s annual value remains unchanged and before factoring in any rebates.
The annual value of a property is estimated based on its yearly rent if it were to be leased out, considering market rents of comparable properties and other relevant factors.
Property taxes are Singapore’s primary means of taxing wealth and are paid annually.
The property tax rate increases announced in 2022 were initially intended as a wealth tax on investment properties and higher-end owner-occupied homes.
However, due to rising market rents from 2022, the annual values of properties increased significantly, impacting a larger proportion of owner-occupied properties than anticipated.
Future Monitoring and Rebates:
The government will closely monitor the property market and provide another rebate in 2025 if necessary.
A rebate was already provided in 2024 to cushion the impact of the property tax changes.
To assist retirees living in higher-end homes facing cash flow challenges when paying property tax bills, the interest-free Giro instalment plan offered by the Inland Revenue Authority of Singapore will be extended to up to 24 months starting from the 2024 property tax bill.
In summary, these adjustments aim to strike a balance between tax fairness and affordability for homeowners in Singapore. 🏠💰
Sources Reference: Straitstime
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