Annual Value of Home

[Dennis Ng]

Dear diabloII,

you asked what is annual value?

My reply:
1. What is Annual Value?

Annual Value is the estimated annual rent the building can fetch if it were rented out. This excludes rent for furniture and fittings and service charges. The Chief Assessor will determine the Annual Value of the property by analysing rents of comparable buildings and relevant data.

The Annual Value is determined in the same manner regardless of whether the property is let, owner-occupied or vacant.

Example:

If the flat can fetch a rent of $1,000 per month,

Annual Value is $1,000 X 12 = $12,000

When a building is demolished, an assessment will be raised on the land under development or vacant land. The Annual Value of the land is determined at 5% of the value on freehold basis.

2. What are the tax rates for Property Tax?

From 1 Jul 1990, the tax rate for owner-occupied residential property is 4%

3. How to check Annual Value of your home?
Every year, IRAS will send you a "Property Tax and TV Licence Fee Bill" where it woudl state the "Annual Value" in this document. I own a 5-Room flat and my annual property tax is less than $200.

4. When can I object to the Annual Value?

You can formally object to the Annual Value as shown in the Valuation List any time during the current year, if you have evidence to show that the Annual Value of your property is excessive.

You can also formally object to the Annual Value proposed in the Valuation Notice within 21 days of the Notice.

5. How do I object to the Annual Value?
You need to submit your objection using the Notice of Objection form.

In your Notice of Objection, you would have to state the grounds of your Objection, including any evidence to support your desired Annual Value.