SINGAPORE – Property tax rates for residential properties will be increased in two stages, starting with the tax payable in 2023, with higher properties seeing larger increases.
Finance Minister Lawrence Wong said Friday (February 18) that property tax rates for non-owner occupied residential properties – which include investment properties – will rise from 12% to 36%.
This compares to the current 10-20% tax levied on these properties.
This means that all non-owner occupied properties will be subject to higher property taxes, with the increase being greater for properties with a higher annual value.
At the same time, the property tax rates for owner-occupied homes for the portion of the annual value over $30,000 will also be increased from 6% to 32%.
That compares to 4 percent to 16 percent for that part of the annual value today.
This increase will impact the 7% of owner-occupied residential properties, Wong said in his budget speech.
Owner-occupied homes with an annual value of $30,000 or less, such as Housing Commission apartments or condominiums and landed properties in suburban areas, will not be affected by the rate increase. property taxation.
Final tax rates of up to 36% for non-owner-occupied homes or 32% for owner-occupied residential properties will come into effect for tax payable from 2024.
When fully implemented, these changes will increase Singapore’s property tax revenue by approximately $380 million per year.
Property tax is currently the primary means of taxing wealth in Singapore, Wong said, noting that wealth tax is an important part of Singapore’s tax system.
“In addition to generating income, they also help to recirculate part of the stock of wealth in our economy and, in doing so, to reduce social inequalities.
“Wealth taxes are therefore necessary to build a fairer society where everyone can aspire to succeed, regardless of background,” Wong said.
He described several ways the Republic currently taxes wealth, such as stamp duty and the Supplementary Registration Tax (ARF) for motor vehicles, alongside property tax.