Assessment
• Basis of Computation of Property Tax
The property tax payable per year is based on a percentage (tax rate) of the Annual Value of the property. The property tax rate is 4% for wholly owner-occupied residential properties and 10% for other properties.
• Annual Value
Annual Value is the estimated annual rent your property can fetch if it were rented out. Generally, IRAS will determine the Annual Value of your property by comparing rentals of similar properties in the vicinity of your property.
The Annual Value is determined in the same manner regardless of whether the property is let-out, wholly owner-occupied or vacant.
The Annual Value of the land is determined at 5% of the market value of the land. When a building is demolished, the land would have to be assessed by this method.
• Objection to Annual Value
A Valuation Notice will be sent to you when IRAS determines or adjusts the Annual Value of your property. If you do not agree with the proposed Annual Value, you may lodge an objection within 21 days of the service of the Valuation Notice.
From 1 Jan 2003, for any date after the service of the Valuation Notice, you may lodge your objection at any time of the year, as long as your objection is with respect to the Annual Value ascribed to your property in the current year.
• Appeal to the Decision of Objection
We do consider your grounds of objection carefully before we decide on your objection. However, you may appeal to the Valuation Review Board (VRB) if you wish to pursue your request for a lower Annual Value.
Please note that you need to appeal to the VRB within 21 days of the notice of decision on your objection and that a fee is chargeable. For each appeal, the VRB charges:
• $50 for a property paying owner-occupier's tax rate; and
• $200 for other properties.
In your appeal, you have to state the grounds of your appeal and whether you have an agent to represent you in the appeal.
• Assessment on New Properties
For all new properties, Property Tax begins on the effective date of the Temporary Occupation Permit (T.O.P.). If you take possession of the property at a later date, you have to settle with the developer/vendor directly for the tax payable from the date of T.O.P. to the date of possession of the property in accordance with the provisions in the Sale and Purchase Agreement.
