🧮 Property Taxes, Property Finance and Financial Calculations

1. For a non-residential property acquired on or after 15 February 2023, what is the top marginal rate of Buyer's Stamp Duty (BSD), and on which part of the price or market value does it apply?

1. 6%, on the amount above the first S$3,000,000
2. 4%, on the amount above the first S$1,000,000
3. 3%, on the amount above the first S$360,000
4. 5%, on the amount above the first S$1,500,000

From 15 Feb 2023, BSD on non-residential property is 1%, 2%, 3% and 4% on the first S$1,500,000 and 5% on the remaining amount; the 6% top rate (above the first $3,000,000) applies only to residential property. 4% above $1,000,000 was the residential top rate from 20 Feb 2018 to 14 Feb 2023, and 3% above $360,000 was the top rate before 20 Feb 2018 (IRAS, Buyer's Stamp Duty, 'Rates and computation').

2. Mr Tan Wei Ming, a Singapore Citizen who owns no other property, accepts an option to purchase a condominium unit for S$1,850,000. The bank's valuation, which reflects market value, is S$1,900,000. What Buyer's Stamp Duty (BSD) is payable?

1. S$57,000, at 3% of the S$1,900,000 valuation
2. S$64,600, computed on the S$1,900,000 valuation
3. S$95,000, at 5% of the S$1,900,000 valuation
4. S$62,100, computed on the S$1,850,000 price

BSD is computed on the purchase price or market value, whichever is higher, so the base is S$1,900,000: 1% x 180,000 = 1,800; 2% x 180,000 = 3,600; 3% x 640,000 = 19,200; 4% x 500,000 = 20,000; 5% x 400,000 = 20,000; total $64,600. Using the lower price gives $62,100, and applying a single rate to the whole amount ignores the marginal tiers. As a citizen buying his first property he pays no ABSD (IRAS, BSD, rates on or after 15 Feb 2023).

3. A couple buys a 4-room HDB resale flat in Sengkang for S$680,000; HDB's valuation of the flat is S$670,000. How much Buyer's Stamp Duty (BSD) is payable on the purchase?

1. S$14,700 in BSD, computed on the S$670,000 valuation
2. S$20,400 in BSD, at 3% of the S$680,000 price
3. S$13,600 in BSD, at 2% of the S$680,000 price
4. S$15,000 in BSD, computed on the S$680,000 price

BSD is payable on the acquisition of any immovable property in Singapore, HDB flats included, on the higher of the price or market value, here S$680,000: 1,800 + 3,600 + 3% x 320,000 (9,600) = $15,000. The valuation is lower, so it is not the base, and a single flat rate ignores the marginal tiers (IRAS, BSD, FAQ 'I am buying an HDB flat' and rates on or after 15 Feb 2023).

4. Mr and Mrs Arun Pillai are both Singapore Permanent Residents. They jointly own two condominium units in Singapore. In 2027 they jointly accept an option to purchase a cluster house for S$1,750,000, which is also its market value. How much Additional Buyer's Stamp Duty (ABSD) is payable on the cluster house?

1. S$525,000, at the 30% rate that applies to citizens
2. S$612,500, at the 35% rate for an SPR's third property
3. S$306,250, at 35% on one spouse's half share only
4. S$87,500, at 5% because they buy it as a married couple

Each spouse already has an interest in two residential properties, so the cluster house is each SPR's third property. From 27 Apr 2023 an SPR buying a third or subsequent residential property pays 35% ABSD on the full price or market value: 35% x S$1,750,000 = $612,500. 30% is the rate for a citizen's third property, ABSD is not split by share, and the married-couple remission requires a Singapore Citizen spouse (IRAS, ABSD rates on or after 27 Apr 2023; Remission of ABSD for a Married Couple).

5. Mr Hiroshi Sato, a foreign national who is not a Singapore Permanent Resident and has no Free Trade Agreement treatment, buys a condominium unit for S$1,500,000 (its market value) in 2027. What is the total of BSD and ABSD that he must pay?

1. S$494,600: BSD of S$44,600 and ABSD of S$450,000
2. S$945,000: BSD of S$45,000 and ABSD of S$900,000
3. S$944,600: BSD of S$44,600 and ABSD of S$900,000
4. S$1,019,600: BSD of S$44,600 and ABSD of S$975,000

BSD on S$1,500,000 = 1,800 + 3,600 + 19,200 + 20,000 = $44,600. ABSD for a foreigner on or after 27 Apr 2023 = 60% x 1,500,000 = $900,000. Total $944,600. $450,000 uses the old 30% foreigner rate (16 Dec 2021 to 26 Apr 2023), $975,000 the 65% entity rate, and $45,000 a flat 3% instead of the marginal BSD tiers (IRAS, BSD and ABSD rates).

6. Oriel Brightway Pte Ltd, a Singapore company that does not carry on housing development, buys a terrace house to accommodate its director. What ABSD rate applies to the purchase?

1. 35%, the entity rate for purchases before 27 April 2023
2. 40%, the combined rate paid by housing developers
3. 65%, the rate for entities buying any residential property
4. 60%, the rate for foreigners buying any residential property

From 27 Apr 2023 an entity (any person that is not an individual) pays ABSD of 65% on any residential property. The 40% rate (35% remittable plus 5% non-remittable) is for housing developers, and IRAS states that an entity with no intention to carry out housing development must pay 65%; 35% was the entity rate from 16 Dec 2021 to 26 Apr 2023 (IRAS, ABSD, rates table and notes).

7. A licensed housing developer buys a residential site for S$48,000,000 to build condominium units for sale. Which portion of the ABSD on this purchase cannot be remitted, even if the developer later meets all the remission conditions?

1. S$19,200,000, being the full 40% paid upfront
2. S$2,400,000, being the 5% portion paid upfront
3. S$31,200,000, being the 65% entity rate on the site
4. S$16,800,000, being the 35% portion paid upfront

Housing developers are subject to ABSD of 35% plus an additional 5% that is not remittable and must be paid upfront (40% in aggregate); they may apply for remission of the 35% portion if the conditions are met. Non-remittable ABSD = 5% x S$48,000,000 = $2,400,000. $16,800,000 is the remittable 35% portion, $19,200,000 the full 40%, and 65% applies to entities with no housing-development intention (IRAS, ABSD, notes 4 and 5).

8. Ms Priya Nair, a Singapore Permanent Resident who owns no residential property, accepts an option to purchase a condominium unit for S$1,200,000 on 3 March 2027. She is granted Singapore Citizenship on 20 March 2027; ICA's in-principle approval came only after the purchase. What ABSD is payable?

1. Nil, based on her citizen status when the deal completes
2. S$60,000 paid first, then refunded once she is a citizen
3. S$60,000, based on her SPR status at the date of purchase
4. S$720,000, as she was not yet a citizen on that date

ABSD depends on the buyer's profile on the date of purchase (here the acceptance of the option) and does not change with a later change of status; an appeal is possible only where ICA's in-principle approval was received before the purchase. As an SPR buying her first residential property she pays 5% x S$1,200,000 = $60,000, with no refund on becoming a citizen. An SPR is not charged the 60% foreigner rate (IRAS, ABSD, FAQ 'I am an SPR who recently became a Singapore citizen').

9. Mr Daniel Goh, a Singapore Citizen, and his wife Mei, a Singapore Permanent Resident, own no residential property. They buy their first matrimonial home, a condominium unit, in their two names only, for S$1,600,000 (equal to market value). If they meet the remission conditions, what total stamp duty do they finally bear on the purchase?

1. S$369,600, being BSD and 20% ABSD
2. S$129,600, being BSD and 5% ABSD
3. S$49,600, being the BSD alone
4. S$80,000, being the 5% ABSD alone

BSD on S$1,600,000 = 1,800 + 3,600 + 19,200 + 20,000 + 5% x 100,000 (5,000) = $49,600. An SPR buying a first property normally pays 5% ABSD, but a married couple that includes a Singapore Citizen, buys in both names only and owns no residential property may obtain full remission of ABSD under the Stamp Duties (Spouses) (Remission of ABSD) Rules. BSD remains payable; $129,600 ignores the remission (IRAS, Remission of ABSD for a Married Couple, part A).

10. Mr and Mrs Lim, both Singapore Citizens, jointly own a condominium unit. On 1 February 2027 they jointly accept an option to purchase a completed semi-detached house for S$2,000,000 and pay ABSD of S$400,000. The buyer of their condominium unit accepts their option on 15 August 2027. How much of the ABSD is refunded?

1. S$200,000, being a refund of half of the ABSD that they paid
2. S$400,000, as IRAS may extend the time limit in a slow market
3. S$400,000, as the sale is within 6 months of legal completion
4. Nil, as the first home was sold over 6 months after purchase

For a completed second property, the couple must sell the first property within 6 months after the date of purchase of the second (here by 1 Aug 2027). The date of sale is the date the buyer accepts the option, 15 Aug 2027, which is too late, so nothing is refunded. The period runs from the purchase, not from legal completion, and IRAS states that the 6-month timeline is not extended for market or personal reasons (IRAS, Remission of ABSD for a Married Couple, part B and FAQs).

11. A married couple, both Singapore Citizens, jointly buy an uncompleted condominium unit as their second residential property and pay ABSD. To qualify for the ABSD refund, by when must they sell their first property?

1. Within 6 months after the date of purchase of the new unit
2. Within 6 months after legal completion of the new unit
3. Within 12 months after the date of purchase of the new unit
4. Within 6 months after the earlier of the TOP or the CSC

Where the second property was uncompleted at the time of purchase, the first property must be sold within 6 months after the issue date of the Temporary Occupation Permit (TOP) or the Certificate of Statutory Completion (CSC), whichever is earlier; 6 months from the date of purchase applies to a completed property. Legal completion is not the trigger, and 12 months applied only under a COVID-19 relief for purchases made on or before 1 Jun 2020 (IRAS, Remission of ABSD for a Married Couple).

12. Ms Nur Aisyah exercised an option to purchase a condominium unit on 2 September 2025. She sells it under an option that her buyer exercises on 20 January 2027, at S$2,150,000, which is also the market value. What Seller's Stamp Duty (SSD) must she pay?

1. S$86,000 in SSD, at 4% for a holding up to 4 years
2. S$172,000 in SSD, at 8% for a holding over 1 year
3. S$344,000 in SSD, at 16% for a holding up to 1 year
4. S$258,000 in SSD, at 12% for a holding over 1 year

For residential property acquired on or after 4 Jul 2025, SSD is 16%, 12%, 8% and 4% for holding periods of up to 1, 2, 3 and 4 years. From 2 Sep 2025 to 20 Jan 2027 is more than 1 year but not more than 2 years, so SSD = 12% x S$2,150,000 = $258,000. 8% is the rate for that holding under the schedule for purchases from 11 Mar 2017 to 3 Jul 2025, and 16% applies only to holdings of up to 1 year (IRAS, SSD for Residential Property, rates table).

13. Mr Ravi Shankar has owned half of a condominium unit since 2015. On 1 March 2026 he bought his sister's half share and became the sole owner. He sells the whole unit under an option exercised on 1 February 2027 for S$1,700,000; its market value is S$1,720,000. What SSD is payable?

1. S$136,000, at 16% on half the S$1,700,000 selling price
2. S$275,200, at 16% on the full S$1,720,000 market value
3. S$137,600, at 16% on half of the S$1,720,000 market value
4. S$103,200, at 12% on half the S$1,720,000 market value

Where parts of a property were acquired at different times, the holding period of each part runs from its own acquisition date. The half held since 2015 is outside any holding period; the half bought on 1 Mar 2026 is sold within 1 year, so SSD is 16% on the higher of the price or market value of that half: 16% x S$860,000 = $137,600. Charging the whole unit, using the lower price or using the 12% rate of the pre-4 Jul 2025 schedule is wrong (IRAS, SSD for Residential Property, 'Rates and computation').

14. Ms Chloe Lim signed an S&P with a developer for an uncompleted condominium unit at S$1,520,000 and paid BSD. Before TOP, she sub-sells the unit to Mr Faisal Rahman for S$1,780,000, which is also its market value. Mr Faisal, a Singapore Citizen, owns no other property. What BSD does he pay?

1. S$58,600, computed on the S$1,780,000 sub-sale price
2. S$45,600, computed on the S$1,520,000 original price
3. S$3,400, computed on the S$260,000 gain made by Ms Lim
4. Nil, as BSD has been paid on the developer's S&P

Under section 22(2) of the Stamp Duties Act, when a purchaser who has paid duty on the contract sells before obtaining a conveyance, the sub-sale is chargeable with ad valorem duty on the consideration moving from the sub-purchaser, i.e. the full sub-sale price of S$1,780,000: 44,600 + 5% x 280,000 (14,000) = $58,600. The BSD paid by Ms Lim does not cover the new buyer, and the duty is not limited to her gain; Ms Lim may separately owe SSD (SDA 1929, s.22(2); IRAS, BSD rates).

15. A buyer living in London signs the acceptance of an option to purchase a Singapore condominium unit on 3 May 2027, and the document is received in Singapore on 10 May 2027. By which date must the BSD be paid to avoid a late-stamping penalty?

1. By 24 May 2027, 14 days after receipt in Singapore
2. By 9 June 2027, 30 days after receipt in Singapore
3. By 2 June 2027, 30 days after signing in London
4. By 17 May 2027, 14 days after signing in London

A document signed overseas may be stamped without penalty within 30 days after it is first received in Singapore (14 days applies to documents signed in Singapore), and the day of receipt is not counted: 10 May + 30 days = 9 Jun 2027. Counting from the date of signing, or applying the 14-day limit, gives the wrong date (SDA 1929, s.43 and s.46(1)(a); IRAS, When to Pay Stamp Duty).

16. Mr Hafiz, a Singapore Citizen, and his wife, a Singapore Permanent Resident, jointly own a 3-room HDB flat. They jointly buy a 5-room HDB resale flat for S$750,000 and, under HDB's rules, must dispose of the 3-room flat within 6 months of taking possession of the new flat. What ABSD do they pay on the 5-room flat?

1. Nil, as ABSD is remitted upfront for this HDB upgrade
2. S$150,000, at 20% as a citizen's second home in Singapore
3. S$37,500, at 5% as the wife is a permanent resident
4. S$225,000, at 30% as an SPR's second residential property

IRAS explains that, because HDB's rules require buyers to dispose of their existing flat within 6 months from the possession of the new HDB flat, ABSD remission is given upfront to a couple upgrading from one HDB flat to another, so no ABSD is payable on the 5-room flat. Without that rule the 30% rate for an SPR's second property would apply; 5% is the rate for an SPR's first property (IRAS, ABSD, FAQ 'We jointly own a 3-room HDB flat').

17. A developer sells an uncompleted condominium unit to Ms Grace Fernandez, a Singapore Citizen with no other property, at a list price of S$1,980,000. The S&P states a direct cash discount of S$99,000 given on signing and a S$20,000 furniture voucher. The net price reflects market value. What BSD is payable?

1. S$68,600, computed on a price of S$1,980,000
2. S$67,600, computed on a price of S$1,960,000
3. S$62,650, computed on a price of S$1,861,000
4. S$63,650, computed on a net price of S$1,881,000

A cash discount stated in the document and given on execution may be deducted from the price for stamp duty, provided the net price still reflects market value; a non-cash benefit such as a furniture voucher is not deductible. Base = 1,980,000 - 99,000 = S$1,881,000; BSD = 44,600 + 5% x 381,000 (19,050) = $63,650. Deducting the voucher as well ($62,650), deducting nothing ($68,600) or deducting only the voucher ($67,600) is wrong (IRAS, BSD, 'Requirement to pay BSD').

18. A buyer pays BSD and ABSD on her acceptance of an option to purchase a condominium unit. Two weeks later she signs a sale and purchase agreement for the same sale. What stamp duty is payable on that agreement?

1. Full BSD again, with a credit for the duty paid on the option
2. BSD only, as ABSD was settled when the option was accepted
3. A fixed duty of S$10, as for every later document of a sale
4. None, as the first document of the sale bore the full duty

IRAS states that the first instrument executed in relation to a sale and purchase is liable to full ad valorem duty, and subsequent documents relating to the same sale are not liable to stamp duty. Section 22(5) of the SDA provides that where more than one contract or agreement is executed for the same sale of the same property, only one is chargeable with ad valorem duty and the others are exempt; section 22(3) likewise exempts the later conveyance. No second BSD, credit mechanism or fixed duty applies (IRAS, BSD, 'Requirement to pay BSD'; SDA 1929, s.22(3) and s.22(5)).

19. Mr Lee deposits the title documents of his shophouse with a lender under an agreement signed under hand (not under seal) to secure a loan of S$180,000. What stamp duty is payable on this equitable mortgage?

1. S$720, at 0.4% of the S$180,000 loan
2. S$500, the maximum duty for a mortgage
3. S$360, at 0.2% of the S$180,000 loan
4. S$180, at 0.1% of the S$180,000 loan

An equitable mortgage (a deposit of title or a charge signed under hand) is stamped at 0.2% of the loan amount, subject to a maximum duty of $500: 0.2% x S$180,000 = $360. 0.4% is the rate for a mortgage, and the $500 cap is not reached at this amount (IRAS, Mortgage Duty, rates from 22 Feb 2014).

20. Ms Wong's open mortgage over her condominium unit was stamped with duty of S$320 when it secured a loan of S$80,000. The bank now grants her an additional S$150,000 loan, secured under the same open mortgage. What further mortgage duty is payable?

1. Nil, as the open mortgage was already stamped
2. S$500, as the extra loan is a fresh mortgage
3. S$600, at 0.4% of the S$150,000 extra loan
4. S$180, the difference between S$500 and S$320

When an additional loan is secured under an existing open mortgage, the duty payable is the difference between the $500 maximum and the duty previously paid: 500 - 320 = S$180. Only a further mortgage under a fixed mortgage is treated as a fresh security liable to full duty (capped at $500), and 0.4% x 150,000 = $600 would exceed the cap (IRAS, Mortgage Duty, 'Variation to an open mortgage').

21. A buyer takes a bank loan of S$118,750 secured by a mortgage over an HDB resale flat. If the mortgage does not say who pays the stamp duty, who bears the mortgage duty, and how much is it?

1. The mortgagee (the bank), S$475
2. The mortgagor (the borrower), S$475
3. The mortgagor (the borrower), S$500
4. The mortgagee (the bank), S$237

Mortgage duty is 0.4% of the loan amount, rounded down to the nearest dollar and capped at $500: 0.4% x S$118,750 = $475, below the cap. Under the Third Schedule of the SDA, the mortgagor pays mortgage duty when the document is silent. $237 uses the 0.2% equitable-mortgage rate (IRAS, Mortgage Duty; Who Should Pay Stamp Duty).

22. A tenant signs a 3-year lease of a condominium unit at S$4,000 a month in the first year, S$4,200 in the second and S$4,500 in the third, plus a maintenance charge of S$150 a month throughout. What lease stamp duty is payable?

1. S$609, at 0.4% of the total rent alone
2. S$841, at 0.4% of 4 times the average annual rent
3. S$631, at 0.4% of the total rent and charges
4. S$210, at 0.4% of the average annual rent

For a lease of 4 years or less, duty is 0.4% of the total rent for the lease period, and the rent includes charges such as maintenance: (4,000 + 4,200 + 4,500) x 12 + 150 x 36 = S$157,800; 0.4% x 157,800 = $631.20, rounded down to $631. Leaving out the charge gives $609, and the 4 x average annual rent formula applies only to leases of more than 4 years (IRAS, Renting a Property, 'Rates and computation').

23. A retailer takes a 3-year lease of a shop unit. It pays the landlord a lump-sum premium of S$200,000 at the start, plus a fixed rent of S$6,000 a month. The premium and rent reflect market value. What is the total stamp duty on the lease?

1. S$1,664: S$800 on the premium and S$864 on the rent
2. S$3,064: S$2,200 on the premium and S$864 on the rent
3. S$6,864: S$6,000 on the premium and S$864 on the rent
4. S$864: duty on the rent, as a premium is not dutiable

For a lease with premium, the premium is stamped at BSD rates and the rent at lease duty rates. Premium: 1% x 180,000 + 2% x 20,000 = S$2,200. Rent: 0.4% x (6,000 x 36) = $864. Total $3,064, payable by the lessee. Charging 0.4% on the premium ($800), a flat 3% ($6,000), or ignoring the premium is wrong (IRAS, Renting a Property, 'Lease with premium'; Who Should Pay Stamp Duty).

24. Halfway through the lease of a cafe unit, the outgoing tenant novates the lease to an incoming tenant, who pays the outgoing tenant S$30,000 for it. If the parties have not agreed otherwise, what stamp duty arises, and who pays it?

1. S$300 at BSD rates, paid by the incoming tenant
2. S$300 at BSD rates, paid by the outgoing tenant
3. S$120 at the lease rate, paid by the landlord
4. S$120 at the lease rate, paid by the incoming tenant

On a novation or assignment of a lease, stamp duty is charged on the consideration, if any, at BSD rates: 1% x S$30,000 = $300. Under the Third Schedule of the SDA, the incoming tenant pays the duty on a novation or assignment of lease with additional consideration. The 0.4% lease rate applies to rent, not to this consideration (IRAS, Renting a Property, 'Novation of lease'; Who Should Pay Stamp Duty).

25. Mdm Halimah owns and lives in her landed house, her only property, which has an Annual Value (AV) of S$58,000. Using the owner-occupier tax rates effective from 1 January 2025, what is her annual property tax?

1. S$5,800 in property tax for the year
2. S$3,400 in property tax for the year
3. S$2,520 in property tax for that year
4. S$10,240 in property tax for the year

Owner-occupier rates from 1 Jan 2025: 0% on the first S$12,000, 4% on the next $28,000 ($1,120), 6% on the next $10,000 ($600) and 10% on the next $25,000, here 10% x 8,000 = $800; total $2,520. $3,400 uses the 2024 owner-occupier bands, $5,800 a flat 10% and $10,240 the non-owner-occupier rates (IRAS, Property Tax Rates and Sample Calculations).

26. Mr and Mrs Teo jointly own two condominium units. They live in Unit A, whose Annual Value is S$42,000, and let out Unit B, whose Annual Value is S$39,000. Using the owner-occupier rates from 1 January 2025 and the non-owner-occupier rates from 1 January 2024, what is their total annual property tax?

1. S$2,320 for the two units together
2. S$11,400 for the two units together
3. S$7,080 for the two units together
4. S$6,640 for the two units together

Owner-occupier rates apply to the one unit they own and live in: Unit A = 4% x 28,000 + 6% x 2,000 = S$1,240. Unit B is let, so non-owner-occupier rates apply: 12% x 30,000 + 20% x 9,000 = $5,400. Total $6,640. Owner-occupier rates for both units ($2,320), non-owner-occupier rates for both ($11,400) or swapping the two units ($7,080) is wrong (IRAS, Property Tax Rates, FAQ on owning and occupying more than one residential property).

27. Ms Fiona D'Cruz bought a second condominium unit as an investment. It stays vacant for the whole of 2027 while she looks for a tenant. Its Annual Value is S$31,000. Assuming the current rate schedules still apply, what property tax is payable on the unit for 2027?

1. Nil, as no property tax is due on a vacant unit
2. S$760, at the owner-occupier residential rates
3. S$3,100, at the 10% rate for all other properties
4. S$3,800, at the non-owner-occupier rates

Property tax is a tax on ownership and applies whether a property is let, owner-occupied or vacant; a vacant residential property is taxed at non-owner-occupier rates with no relief: 12% x 30,000 + 20% x 1,000 = S$3,800. Owner-occupier rates apply to the one property the owner occupies, and 10% is the rate for non-residential property (IRAS, Property Tax Rates, FAQs on vacant property).

28. Mr Kenji Wong moves out of the condominium unit that he owns and has been living in, and starts letting it. Under the Property Tax Act 1960, by when must he notify the Chief Assessor that he has ceased to occupy it?

1. Within 30 days of ceasing to occupy the unit
2. Within 15 days of ceasing to occupy the unit
3. Within 14 days of signing the tenancy agreement
4. By the time the next annual tax bill is issued

Section 19(8) of the PTA requires an owner to give written notice to the Chief Assessor within 15 days of ceasing to occupy the property, so that owner-occupier rates stop applying. 14 days is the stamping deadline for a document signed in Singapore, not a property tax notice period, and waiting for the next bill is too late; failing to give a notice required by section 19 is an offence (Property Tax Act 1960, s.19(8) and s.19(15)).

29. Under section 2(6) of the Property Tax Act 1960, the Chief Assessor opts to assess a vacant plot of land by reference to its estimated value of S$4,000,000. What Annual Value (AV) results?

1. S$400,000, being 10% of the estimated land value
2. S$120,000, being 3% of the estimated land value
3. S$160,000, being 4% of the estimated land value
4. S$200,000, being 5% of the estimated land value

Section 2(6) of the PTA lets the Chief Assessor deem the Annual Value to be the annual interest at 5% on the estimated value of the property, or on the estimated value of the land as if it were vacant (s.2(6)(a)-(b)): 5% x S$4,000,000 = $200,000. 10% is the property tax rate for non-residential property, not the percentage used to derive the AV (Property Tax Act 1960, s.2(6)).

30. Under section 69 of the Property Tax Act 1960, on which grounds may the Minister remit, wholly or in part, the property tax payable by a person?

1. On the ground of poverty, or if it is just and equitable
2. Whenever the property has been vacant for over 30 days
3. When the owner's objection to the AV is still pending
4. When the owner lets the property below its market rent

Section 69 of the PTA allows the Minister to remit tax wholly or in part on the ground of poverty, or if satisfied that it is just and equitable to do so. A vacant property remains taxable, a below-market rent does not by itself reduce the tax, and section 35A requires tax to be paid despite an objection (Property Tax Act 1960, s.69 and s.35A; IRAS, Property Tax Rates, FAQs).

31. Mr Ong demolishes his old bungalow to rebuild it, and the demolition is completed on 10 March 2027. Under the Property Tax Act 1960, by when must he notify the Chief Assessor, and what may happen if the Valuation List is not amended?

1. By 24 March 2027; the tax on the house then stops by itself
2. By 10 April 2027; the tax on the house then stops by itself
3. By 9 April 2027; he may still be taxed as if the house stood
4. By 25 March 2027; he may still be taxed as if the house stood

Section 19(3) of the PTA requires written notice to the Chief Assessor within 15 days from the completion of the demolition (10 Mar + 15 days = 25 Mar 2027). Under section 19(4), where no action has been taken to amend the Valuation List, the owner may, at the Comptroller's option, continue to be liable as if the building had not been demolished, so the tax does not stop by itself (Property Tax Act 1960, s.19(3)-(4)).

32. Which of the following owners is most likely to be regarded by IRAS as trading in properties?

1. Ms Boon, who sold the flat she had lived in for 12 years to move closer to her parents
2. Mr Chua, who sold a house he inherited because he could not afford its upkeep
3. Mdm Devi, who sold a unit she had let out for 9 years to fund her retirement
4. Mr Ang, who bought five new units on short-term loans and resold each within a year

Whether a person trades in property is decided on the facts, using indicators such as the frequency of transactions, the length of ownership, how the purchases are financed, the intention at purchase and the reason for sale. Repeated purchases on short-term finance with quick resales point to trading, whose gains are taxed as income under section 10(1)(a) of the Income Tax Act; selling a long-held home, an inherited house or a long-term investment points to a capital gain, which is not taxed (RES Syllabus 2027, LO 4.7.9; ITA 1947, s.10(1)(a)).

33. Ms Joanne Tay sells a condominium unit that she has held for 10 years as a long-term investment, making a gain of S$400,000. She does not trade in properties. How is the gain treated for income tax?

1. It is taxed as income at her personal income tax rates
2. It is taxed as income because the unit had been let out
3. It is a capital gain and is not subject to income tax
4. It is taxed at a flat 10% rate on gains from property

Singapore does not tax capital gains: section 10(1) of the Income Tax Act charges gains or profits from a trade and rents, not a gain on disposing of a property held as an investment. Such a gain is capital in nature unless the owner is regarded as trading in properties, in which case it is taxed as income. Letting the unit makes the rent taxable (s.10(1)(f)), not the gain on sale, and 10% is the property tax rate for non-residential property, not a tax on gains (RES Syllabus 2027, LO 4.7.9; ITA 1947, s.10(1)).

34. In 2027 Mr Rajesh Kumar lets his condominium unit for the whole year at S$4,600 a month and claims his actual expenses: mortgage interest S$18,500, repayment of loan principal S$26,000, property tax S$8,784, fire insurance S$320, air-conditioner repairs S$1,180, and a S$16,000 renovation done before the first tenancy. What is his net rental income?

1. S$416 of net rental income
2. S$10,416 of net rental income
3. S$36,700 of net rental income
4. S$26,416 of net rental income

Gross rent = 4,600 x 12 = S$55,200. Expenses incurred wholly and exclusively in producing the rent are deductible: interest, property tax, fire insurance and repairs (18,500 + 8,784 + 320 + 1,180 = $28,784), leaving $26,416. Repaying the loan principal and an initial renovation that improves the unit are capital in nature and not deductible; deducting them gives $416 or $10,416, while deducting interest alone gives $36,700 (RES Syllabus 2027, LO 4.7.10; ITA 1947, s.14(1)(a) and (c), s.15(1)(c)-(d)).

35. Mdm Wong lets out her shophouse unit. Which of the following expenses is NOT deductible against her rental income?

1. Interest on the bank loan used to buy the shophouse
2. Property tax paid on the shophouse for the let period
3. Cost of repairing the leaking roof of the shophouse
4. Cost of adding a new rear extension to the shophouse

Outgoings incurred wholly and exclusively in producing the rental income are deductible, such as interest on the money borrowed to buy the property (s.14(1)(a)), repairs to the premises (s.14(1)(c)) and the property tax on the let property. Building an extension is capital expenditure on an improvement: no deduction is allowed for capital employed in improvements (s.15(1)(c)-(d)), and the proviso to s.14(1)(c) excludes rebuilding or works of a permanent nature (RES Syllabus 2027, LO 4.7.10; ITA 1947).