Property tax is payable by the landowner regardless of whether the property is owner-occupied, rented out or left vacant.
The amount payable is calculated by multiplying the Annual Value of the property with the applicable property tax rates detailed in the following table.
Goods and Services Tax (GST)
While sales of residential properties are exempted from GST, a purchaser of non-residential property may be liable for payment of the GST.
Capital Gains Tax
Generally, the gains derived from the sale of a property in Singapore are deemed as a capital gain which is not taxable.
However, such gains may be taxable if the property is sold with a profit-seeking motive, or if the vendor is deemed to be trading in properties. Whether a person is deemed to be trading in properties will depend on individual circumstances.
Some criteria used to assess if one is trading in properties are as follows:
- Frequency of transactions (buying and selling of properties);
- Reasons for acquiring and selling of property;
- Financial means to hold the property for long term; and
- Holding period.