RES exam question on Taxes & Duties: Annual property tax is assessed on a residential property based on its Annual Value (AV)
Annual property tax is assessed on a residential property based on its Annual Value (AV). Owner-occupier rates differ from non-owner-occupier rates, and the owner lets the property out. Which is/are correct? (i) Property tax is computed on the Annual Value, broadly the estimated annual rent (ii) Property tax is a one-time tax paid only at purchase (iii) Owner-occupier (residential) tax rates are generally lower than non-owner-occupier rates (iv) A property that is rented out is taxed at non-owner-occupier rates
- A(i), (ii), (iii) and (iv)
- B(i), (iii) and (iv) only
- C(ii), (iii) and (iv) only
- D(i), (ii) and (iii) only
Show answer & explanation
Answer
B. (i), (iii) and (iv) only
Explanation
(i) is correct because property tax is computed on the Annual Value, broadly the estimated annual rent. (iii) is correct because owner-occupier residential rates are generally lower than non-owner-occupier rates. (iv) is correct because a rented-out property is taxed at the higher non-owner-occupier rates. Hence (i), (iii) and (iv).
Why the other options are wrong
- (ii) is wrong: property tax is an annual recurring tax, not a one-time charge paid only at purchase.
Study the concept behind this question: Property Tax, GST & Tenancy Stamp Duty in Singapore
Practise more Property Taxes (BSD, ABSD, SSD) questions
Drill the full Property Taxes (BSD, ABSD, SSD) bank with instant answers and explanations — free to start, no card needed.
Related Property Taxes (BSD, ABSD, SSD) questions
Get each day's lesson free — one RES topic + the trap, every day on Telegram.
Join @resprepsg →Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.