Tax on property income in Singapore
Taxation Researcher | December 25, 2020
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 20%.
CAPITAL GAINS TAX
There is no capital gains tax in Singapore.
Rental income earned by nonresidents is subject to the nonresident tax rate of 20%. The taxable income is computed by deducting property tax, insurance, maintenance and repairs from the gross rental income. Depreciation of the property is not deductible.
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 2015
|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%.