Demolishing or Rebuilding Your Property

Owners that demolish and/or rebuild their property must notify IRAS and submit information to IRAS upon request. Owners demolishing and rebuilding their property for subsequent owner-occupation may be eligible for property tax remission.

Notify IRAS on the Date of Demolition

Owners must notify IRAS within 15 days from the date of demolition or removal of their buildings or any part of their buildings.

How to Notify IRAS

1. Log into mytax.iras.gov.sg with your SingPass
2. At the top menu, Select “Email Us (myTax Mail)”.

Penalty for Non-Compliance

The penalty is a fine of up to $5,000 and an interest on the tax at such rate as may be prescribed (if any).

 

Submit Relevant Information to IRAS

Upon notification of the demolition or removal of the building or any part of the building, IRAS will write to owners to request for the following information:

1. The date the building was vacated;
2. The date the building was demolished;
3. The expected date of completion of the new building;
4. A copy of the BCA permit to carry out structural/demolition works;
5. A copy of the URA lodgement form or the notice of grant of provisional or written permission;
6. The proposed plot ratio;
7. A copy of Development Charge Interim Order (if any); and
8. A copy of the location and site plan (preferably in A4 size).

You must submit the information to IRAS upon request.

Penalty for Non-Compliance

The penalty is a fine of up to $1,000.

 

Revision of Annual Value

The Annual Value (AV) of the property that is demolished will be determined at 5% of the estimated freehold market value of the land.

A Valuation Notice reflecting the revised AV will be sent to the owner. The tax payable is computed based on non-residential tax rate of 10%.

 

Example of Tax Payable for a Property that is Demolished  

 

    Annual Tax payable before demolition (based on building AV of $24,000 and enjoys owner-occupier tax rates)

Annual Value ($)	Tax Rate	Property Tax Payable
First 8,000	X 0%	= 0
Next 16,000	X 4%	= $640
Property Tax Payable for 2015		= $640

 Annual Tax payable after demolition (based on land AV of $240,000)

Annual Value ($)	Tax Rate	Property Tax Payable
240,000	X 10%	= $24,000
Property Tax Payable for 2015		= $24,000

Upon the completion of the new building, the AV will be reviewed again to take into account its rental value.

 

Claim Property Tax Remission

Individual property owners who rebuild their property for owner-occupation may be eligible for property tax remission.

Find out about Property Tax Remission for Rebuilding an Owner-Occupied House.