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Property Tax Rates for Industrial and Commercial Properties

Property Tax Rates for Industrial and Commercial Properties

As we know, if we own a property or properties in Singapore, property tax will be levied.

In terms of property tax rates, there are different rates applicable for various types of properties.

Property tax are also levied based on the annual value of properties. The annual value of a property is also known as the estimated gross rental per year if the property is leased out. This value is determined by the Inland Revenue Authority of Singapore and is usually reviewed on a yearly basis.

In this article, we will share more about the tax rates that are applicable to industrial and commercial properties in Singapore.

Rates for Industrial and Commercial Properties

For non-residential properties such as commercial or industrial properties in Singapore, the property tax rates are as follows :

10% of the annual value of the property

For example, if the annual value of a warehouse determined by the authority is S$24,000 for that particular year, the calculation will be :

10% x S$24,000 = S$2,400

Difference Between Industrial / Commercial Tax Rates and Residential Rates

Industrial and Commercial Tax Rates are fixed at 10% of the annual value determined by the authority while for residential properties, there are progressive rates depending on the annual value of the property. There are also differentiated rates for owner occupied and non-owner occupied residential properties but not for commercial and industrial properties.

For owner occupied residential properties, property tax rates applicable are lower than property tax rates for non-owner occupied tax rates. If there is any change in the occupancy status of the residential property, the property tax rates will also be adjusted accordingly.

Where Does the Tax Go

Together with other taxes, property taxes fund the development of Singapore to benefit everyone living in the country. Examples of such developments would be infrastructure, healthcare and services, defence, education and recreation.

Why Does the Tax Amount Change

Annual value may be adjusted to reflect the changes in market rental rates. If there are any adjustments in annual value, a notice will be sent to the owner of the property to notify on the changes.

How to Pay for Property Tax

Property tax payments are usually due on the 31st of January each year and payments can be made via either GIRO, AXS, SAM or online via internet banking. The bill will be sent out to the property owner at the end of the year.