GREATER CONVENIENCE FOR OWNERS OF NEWLY

GREATER CONVENIENCE FOR OWNERS OF NEWLY COMPLETED
RESIDENTIAL DEVELOPMENTS
In collaboration with REDAS and Law Society of Singapore, IRAS has introduced a
new initiative to provide more convenience to owners of newly completed high-rise
residential developments. Property owners will no longer need to seek
reimbursement from the property developers for the latter’s share of the property tax
after they receive the Valuation Notices from IRAS. This is because from 1 Oct 2014,
IRAS will notify residential property developers of the Annual Values (AVs) of newly
completed residential units within 2 weeks from the issuance of the Temporary
Occupation Permit (TOP). This will enable the developers to work out the respective
amounts of property tax that the purchasers and developers are responsible for, and
pay their share to the owners once the transfer dates are known.
Upfront Apportionment of Property Tax between Developers and Purchasers
From 1 October 2014, IRAS will notify residential property developers of the AVs of
each unit in the newly completed high-rise residential development, within 2 weeks
from the date of TOP. Early notification will enable the property developer to work
out the respective amounts of property tax payable by the developer and the
purchaser in respect of each unit, based on mutually agreed arrangements.
Typically, the developer will bear the amount of property tax from the date of TOP to
a date agreed with the purchaser, from which the purchaser will bear his share of the
tax. The developer will therefore work out and pay its share of the property tax to the
purchaser.
When the purchasers receive Valuation Notices (VNs) from IRAS for the payment of
tax from the date of TOP, they may settle the payment with IRAS and will no longer
have to subsequently seek reimbursement from the developer for the developer’s
share of property tax.
Following an early assessment of AVs of the newly completed residential
development, developers will also benefit from an early release from their liability for
the property tax on land from the date of TOP.
New Process
Prior to TOP, IRAS will invite developers to indicate their preference to receive a
listing of AVs for the development or VNs for the individual units.
Developers are encouraged to opt to receive an AV listing as it frees them from
having to deal with the volume of VNs. The benefits are more significant in respect of
sizeable developments. IRAS will send VNs to the purchasers of the individual units
after an agreed period between IRAS and the developers, typically 3 months after
the issuance of TOP. Within the agreed period, the developer and the conveyancing
lawyers will ensure that the respective shares of property tax amounts will be
apportioned between the developer and the purchasers.
Developers will therefore pay directly to the purchasers their share of the property
tax for the period from date of TOP to date from which the purchasers become
responsible for the tax. The purchasers will no longer need to seek reimbursement
from the developers when they receive the Valuation Notices later.
For developers who do not opt for an AV listing, they will receive VNs for the
individual units. They will then be obliged to settle the property tax in full with IRAS
and their conveyancing lawyers may then separately follow up with the purchasers
for their share of property tax.
For more information
Please contact :
Mr Paw Lian Jie at 6351 2371 or e-mail [email protected]
Ms Ong Li Ting at 6351 2355 or e-mail [email protected]

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