Property values updated to match market rates

Property values updated to match market rates

 

I REFER to last Wednesday’s letter, ‘Property tax raised twice in a year’ by Mr Tan Wenfa.

 

Property tax is based on the annual value of a property, which is the estimated market rental of the property if it were to be let out. Annual values of properties need to be updated whenever they have become out of line with prevailing market rentals. Generally, the Inland Revenue Authority of Singapore reviews the annual values of properties every year.

 

The annual value of Mr Tan’s property was previously updated in September last year. Last month, the annual value had to be revised to reflect the prevailing market rentals for similar properties. The need to update the annual value of Mr Tan’s property is due to the increase in rentals for similar properties in the same estate between last year and this year.

 

We thank Mr Tan for the opportunity to clarify.

 

Deanna Choo (Ms)

Director, Corporate Communications Branch

Inland Revenue Authority of Singapore

 

Source: Straits Times

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