SINGAPORE — Housing and Development Board (HDB) flat owners will pay lower or no property tax next year, with those who own three-room flats to see the biggest cuts, said the Inland Revenue Authority of Singapore (Iras) on Monday (Nov 28).

One- and two-room HDB flat owners, as well as some three-room flat owners, will pay no tax at all. Some three-room flat owners will pay S$18.40 next year, 51 per cent less tax  compared to this year.

Four-room flat owners will pay S$52 to S$100, 26 per cent to 19.2 per cent less than this year. Five-room flat owners will pay S$83.20 to S$131.20, about 20.6 per cent to 14.1 per cent less than this year. 

Executive flat owners will pay S$95.20 to S$143.20, down 18.5 per cent to 13.1 per cent from this year. 

Almost all private residential property owners will also see lower or no change in their property tax next year.

Property tax is computed by multiplying the Annual Values (AVs) of properties with the relevant progressive property tax rates for residential properties. 

The decreases next year for HDB flat owners continues a decline seen this year, where the tax payable for this group — excluding one- and two-room flat owners — fell at least 9 to 24 per cent, on the back of AVs being reduced in tandem with falling market rentals. 

Despite the housing market slump, property taxes collected by Iras rose 2.7 per cent in Financial Year 2015/16, due mainly to higher receipts from the private residential, industrial and commercial segments.

All property owners will receive their property tax bills by the end of December, and the tax is payable by Jan 31 next year. 

A 5 per cent penalty will be imposed for property owners who fail to pay their tax by the due date. Those facing financial difficulties should approach Iras at 1800-356-8300 for assistance before Jan 3.