Tax on property income in Singapore
Taxation Researcher | January 19, 2023
Effective Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 22% | 22% | 22% |
| Click here to see a worked example | |||
| Source:Global Property Guide | Disclaimer | ||
INDIVIDUAL TAXATION
Nonresidents are liable to tax on their Singaporean-sourced income. Married couples are generally assessed separately.
INCOME TAX
Income tax levied on nonresident´s income is levied at flat rates, and the applicable tax rate varies depending on the source of income. Employment income of nonresidents is taxed at a flat rate of 15%. All other income earned by nonresidents is taxed at a flat rate of 22%.
CAPITAL GAINS TAX
There is no capital gains tax in Singapore.
RENTAL INCOME
Rental income earned by nonresidents is subject to the nonresident tax rate of 22%. The taxable income is computed by deducting property tax, insurance, maintenance and repairs from the gross rental income with a maximum deduction of 15%. Depreciation of the property is not deductible.Income tax will be raised to 24% by the assesment year of 2024.PROPERTY TAX
Property Tax
Property tax is levied on immovable property. Property tax is levied on a percentage of the annual value of the property.
For residential properties occupied by owners, property tax is levied at progressive rates.
PROPERTY TAX FOR OWNER-OCCUPIED PROPERTIES 2023 |
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| TAX BASE, SGD (US$) | ||
| Up to 8,000 (US$5,926) | 0% | |
| 8,000 - 55,000 (US$40,741) | 4% | |
| 55,000 - 70,000 (US$44,444) | 6% | |
| 70,000 - 85,000 (US$51,852) | 8% | |
| 85,000 - 100,000 (US$74,074) | 10% | |
| 100,000 - 115,000 (US$85,185) | 12% | |
| 115,000 - 130,000 (US$96,296) | 14% | |
| Over 130,000 (US$96,296) | 16% | |
| Source: Global Property Guide | ||
Foreigners pay, in addition, a 10% surcharge.
For residential properties not occupied by owners, property tax is levied from 10% to 20%.