GST linked property taxation for Singapore. (Akan Datang?)
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GST rate linked property taxes for a progressive nation state.
Increasing residential property tax across the board to MATCH GST will certainly go a long way to curb property price speculation.Pls charge property tax at EQUAL to the GST level but with rebates for Singaporeans. The Annual Value (AV) rebate should be S$6000 per annum per citizen (half for PRs)(based upon the median mkt price annual rental for single HDB room), so if U have a house with 10 Singaporeans staying and AV is $100K, the AV rebate would be S$60K, the consequent taxable amount will be S$40K, at 7% AV tax, the tax payable will be S$2.8K; (at 10%GST, it will be S$4K, p.a.(BOTH affordable even compared with current 2014 "discounted" rates)).
Of course, if the same house were solely tenanted by a foreigner family, then the AV property tax payable would be S$7K (@7%GST equivalent), S$10K (@10% GST equivalent)(foreigners are not entitled to property tax waivers unless they become citizens/ PRs).
Much more fair this way because some bigger families stay in big house NOT because they are rich, but because they have close knit families and enjoy the kampong spirit: they are equally important to Singapore, and thus shouldn't be taxed more just by virtue of their good family relationships.
Pls note that every Singaporean male does NS for pittance allowance, the $6K/ citizen (tenant/ otherwise) AV rebate should thus apply ACROSS THE BOARD to recognize every Singaporean as belonging to Singapore...
The SAF budget was SGD 12.08 billion (1 in every 4 dollars spent by government) (FY2011): property owners who are non Singaporean/ Singaporeans who live in excessively large properties should thus pay what is in excess of their entitlement of defence cost of Singapore.
Based on very nebulous IRAS Website: http://www.iras.gov.sg/irasHome/page04.aspx?id=2094
Example: AV of your house is $100,000 (Owner occupied), Property Tax payable (2014) is:
First $8,000 X 0% = $ 0
Next $47,000 X 4% = $1,880
Next $5,000 X 5% = $250
Next $10,000 X 6% = $600
Next $15,000 X 7% = $ 1050
Next $15,000 X 9% = $1350
Tax payable for 2014: = $5,130.
Large Singapore families ['We're the Tan family - 80 under one roof']:
Quote:The Straits Times, Published on Feb 13, 2014
PROPERTY COOLING MEASURES
Rent-seeking culture dampens entrepreneurial spirit
PROPERTY developers and agents should refrain from using words and phrases like "unnerving" and "not sustainable" when referring to the current state of the property market ("CDL chief calls for review of property cooling measures"; last Saturday).
Did they use the same terms when property prices spiralled out of control and Singaporeans found themselves mired in lifelong mortgage debt?
The Government should examine Singaporeans' longstanding love affair with real estate investment and its impact on our competitiveness and entrepreneurship.
If one can buy property and collect rent while waiting for the inevitable price appreciation, what incentive is there for one to be entrepreneurial and make money from activities that generate real value for the economy?
This rent-seeking culture is detrimental to Singapore's long-term social and economic development.
It took seven rounds of cooling measures to tame the property beast.
We should not let it loose until sanity has been restored to the market.
Lim Yiak Tiam
Rent-seeking culture dampens entrepreneurial spirit
Copyright © 2014 Singapore Press Holdings. All rights reserved.
PS: Author is no relation to the 80 member Tan family, just thought GST linking would be a fairer way to of rent seeking amongst property owners, Singaporean or otherwise: destroying the fabric of a cohesive Singapore bringing light to the world.
Tags:
GST, property, taxes, progressive, economics, government, Singapore, poverty, wealth, defense spending, budget, -
Re: GST rate linked property taxes for a progressive nation state.
Quote:Originally Posted by john_wai
Thread source(A1): GST rate linked property taxes for a progressive nation state.
One question... What is this "Annual Value (AV)" thing is??? Surely it doesn't mean the value of the property??? For eg, if you property is valued at SG$1 million dollars??? The tax sounds rather high...1. How is Annual Value (AV) determined?
A) Buildings
The AV is the estimated annual rent of your property if it were to be rented out, excluding the furniture, furnishings and maintenance fees. It is estimated based on market rentals of similar or comparable properties. The basis of determining the AV is the same whether the property is rented out, owner-occupied or left vacant. If your property is rented out, the AV could be higher or lower than your actual rents as the AV reflects the market rent at the time of review, while your actual rents were committed earlier.
Illustration (A):
Estimated market rent of your flat is $1,000 per month
Annual Value is: $1,000 x 12 = $12,000
*Property Tax payable is derived by subsequently applying the relevant tax rate (%) on the AV.
Why AV is derived based on rental instead of transacted sale price?
The rental transactions of comparable properties are used to estimate the AV of the property, for two reasons. First, there are generally more rental transactions than sales transactions to allow AV to be determined for each property based on comparable properties. Second, movements in sale prices are more volatile than rentals. Hence, using rental transactions to derive the AV helps to keep property tax more stable for property owners. This practice of using market rents to determine the AV is also adopted by other countries like Hong Kong and Malaysia.
As property tax is a wealth tax based on property ownership, the property tax should take account of the prevailing value of the property as determined from prevailing rental transactions instead of historical purchase price. Using historical purchase price to estimate AV would be inequitable towards newer owners because for similar and comparable properties, the property tax would differ depending on the time of purchase.
Rental information on Private Apartments and HDB Flats.
IRAS: Know your property tax: How is Annual Value determined -
The current AV Tax rates with e.g.:
Budget 2013: More progressive property tax rates for Singaporean households
To make the tax system more progressive, the Government is raising property tax rates for high-end residential properties in Singapore Budget 2013, with the largest increases applying to investment properties that are not occupied by their owners.
The majority of owner-occupied homes will have lower tax rates in Singapore Budget 2013.
Owner-occupied residential properties:
[Img Source][alt img site]
Non-owner-occupied residential properties:
[Img Source][alt img(non-owner occ)site] -
Most countries don't even have property tax if it's owner occupied.
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Everything can be taxed.
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Originally posted by βÎτά:
Most countries don't even have property tax if it's owner occupied.
Chinese man eats anything that can move. PM Lee as a Chinese man, has sharp eye for $$$ things that actively move....
First it was income tax, then came GST. Property prices have been moving upwards lately, so no surprise that it will be the next target: only logical really. Shanghai has started it, UK is doing it for foreigners cos locals there are complaining about unaffordable property prices, my suggestion above self explainatory, hope that Singapore can impolement it soon: will be good for the country.
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public housing quite affordable leh.
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In many countries if the owner occupied their home than their is no textation but in many country everything is textation.
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Originally posted by Panelsfurnitureasia:
In many countries if the owner occupied their home than their is no textation but in many country everything is textation.
What is textation?
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Tax
