RES exam question on Taxes & Duties: Mdm Siti owns two condominium units
Mdm Siti owns two condominium units: she lives in one and lets the other. She also owns a shop unit that stood empty for all of 2026. Her accountant explains the rates IRAS applies to the Annual Value of each property in 2026. (i) On the let unit, the non-owner-occupier scale starts at 10% on the first $30,000 of Annual Value. (ii) The empty shop unit pays no property tax until a tenant is found for it. (iii) On her home, the first $12,000 of Annual Value is taxed at 0% under the owner-occupier scale. Which of the statements above is/are correct?
- A(i) and (iii) only
- B(i) and (ii) only
- C(ii) and (iii) only
- D(iii) only
Show answer & explanation
Answer
D. (iii) only
Explanation
Answer: (iii) only. Only the home's rate is right; the let unit's scale starts at 12%, and an empty shop is still taxed.(iii) True. Owner-occupier rates from 1 Jan 2025 start at 0% on the first $12,000 of Annual Value.Rule: Owner-occupier residential rates from 1 Jan 2025 run from 0% on the first $12,000 up to 32%, and non-owner-occupier residential rates from 1 Jan 2024 are 12% on the first $30,000, then 20%, 28% and 36%. Non-residential property pays a flat 10% of Annual Value whether let, occupied or vacant.Source: IRAS, Property Tax Rates, checked Oct 2026; /learn/property-tax-gst-and-leasing
Why the other options are wrong
- (i) False. The non-owner-occupier scale starts at 12% on the first $30,000. 10% is the non-residential rate.
- (ii) False. Non-residential property is taxed at a flat 10% of Annual Value whether let, occupied or vacant.
Study the concept behind this question: Property Tax, GST & Tenancy Stamp Duty in Singapore
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