Global Property Guide

Financial Information for Residential Property Buyers


Rental income tax in Singapore is high

Last Updated: December 21, 2017

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 20%.

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 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

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 2015

TAX BASE, SGD (US$)
TAX RATE
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%.

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