HDB Flat Owners Information Checklist is a much needed tool for those purchasing an HDB or even a DBSS flat. A HDB Flat Owners Information Checklist highlights the things purchasers should check or do before and after purchasing the HDB / DBSS flats.
1. HDB Flat Owners Information Checklist – before the transfer of the property
- Check on outstanding property tax
Once the property is transferred to you, you will be liable for any outstanding property tax including arrears that should have been paid by the previous owner. Thus, it is important for your HDB officer or lawyer to check with Inland Revenue Authority of Singapore (IRAS) on any outstanding property tax. For newly constructed HDB flats, IRAS will bill you for the property tax that starts from the date you take possession of the flat. For DBSS flats, billing will start from the date of temporary occupation permit (TOP).
- Apportion property tax between you and the seller
If there is an outstanding tax amount, your HDB officer or lawyer will assist you to settle the outstanding amount with the seller. Your HDB officer or lawyer will also apportion the current year tax between the seller and yourself. IRAS does not apportion property tax liabilities between the parties.
- Notify Change of Ownership
HDB will notify IRAS of the transfer of the HDB flat. You need not notify IRAS. IRAS will update the ownership record for property tax purpose based on the information given. For correspondence and payment, IRAS communicates with the owner who is the main applicant listed in the purchase of the flat. If there is a preference among owners on who IRAS should correspond with, ensure that you are registered as the main applicant.
Your HDB officer or lawyer usually performs these tasks as part of conveyancing or the legal process of transferring ownership of property. Check with your lawyer or HDB officer to find out more about the status of the HDB Flat Owners Information Checklist tasks.
2. HDB Flat Owners Information Checklist – After the Transfer of Property
Once HDB has notified IRAS of the transfer, the record of ownership will be updated for property tax purposes.
- Update your address
IRAS sends the property tax bill or notice to the address listed on your identity card. To receive all your correspondence promptly, ensure that your address is updated. For individual property owners, IRAS sends the property tax bills/notices/correspondences to the residential mailing address stated in the property owner’s identity card.
When you relocate, update your identity card at any Police Post. Once the address is updated, IRAS will automatically send bills/notices/correspondences to the new address. You do not have to notify IRAS separately once you have updated your identify card at the Police Post.
Owners who live in their homes enjoy lower property tax rates. You do not need to apply for the owner-occupier tax rates as it will be automatically applied.
The policy intent of owner-occupier tax rates is to encourage home ownership in Singapore. They are only applicable if owners are residing in their residential property.
The owner-occupier tax rates are progressive tax rates based on the annual value of your property. This means residential properties of higher annual value are taxed at higher rates while most owner-occupied properties (including all HDB flats) will continue to enjoy lower tax rates.
|Owner-Occupier Tax Rates|
|Annual Value ($)||Effective 1 Jan 2015||Property Tax Payable|
- The HDB Flat Owners Information Checklist reminds you to calculate the annual property tax payable
To calculate the annual property tax payable, multiply the Annual Value (AV) of the property with the set of Property Tax Rates that applies to you. Property tax rates on owner-occupied and non-owner occupied residential properties are applied on a progressive scale.
The AV of buildings is the estimated gross annual rent of the property if it were to be rented out , excluding furniture, furnishings and maintenance fees. It is determined based on estimated market rentals of similar or comparable properties and not on the actual rental income received.
- Anyone using the HDB Flat Owners Information Checklist should arrange to pay your Property Tax
When there is more than one owner, all the owners are collectively responsible for paying property tax. When you buy any property, you need to pay Stamp Duty within 14 days of the date of Contract/Agreement. HDB has been authorised by IRAS to collect stamp duty on its behalf.
By: Phoenix Lee/Contributor iCompareLoan
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