Tax on property income in Singapore
Taxation Researcher | January 19, 2023
Effective Tax Rate on Rental Income
|Click here to see a worked example|
|Source:Global Property Guide||Disclaimer|
Nonresidents are liable to tax on their Singaporean-sourced income. Married couples are generally assessed separately.
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 INCOMERental 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 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
|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%.