SINGAPORE – Property tax rates for residential properties will be raised in two steps, starting with the tax payable in 2023, with properties at the higher end seeing steeper hikes.
Finance Minister Lawrence Wong said on Friday (Feb 18) that the property tax rates for non-owner-occupied residential properties – which include investment properties – will be increased to 12 per cent to 36 per cent.
This compares with the current 10 per cent to 20 per cent tax levied on such properties.
Property tax is currently Singapore’s principal means of taxing wealth, Mr Wong said, noting that wealth taxes is an important part of Singapore’s tax system.
“Apart from generating revenue, they also help to recirculate a portion of the wealth stock into our economy and in so doing, mitigate social inequalities.
“Wealth taxes are therefore needed to build a fairer society where everyone can aspire to succeed regardless of their backgrounds,” Mr Wong said.
He outlined several ways in which the Republic currently taxes wealth, such as stamp duties and the Additional Registration Fee (ARF) for motor vehicles, alongside property tax.
“The higher value the residential property or motor vehicle, the higher the tax rate.”
(Source: The Straits Times)