The HDB Annual Value is definitely the approximated gross yearly hire a property could command if it ended up rented out, excluding furniture, furnishings, and upkeep expenses. This benefit, based on the Inland Revenue Authority of Singapore (IRAS), is a crucial Consider calculating the yearly residence tax and isn't according to the flat's industry sale selling price. IRAS assessments the Annual Value of all Qualities each year, making an allowance for the industry rentals of comparable or equivalent properties within the vicinity, plus the residence's dimensions, site, and ailment. Just how the Once-a-year Benefit is decided continues to here be a similar irrespective of whether the flat is operator-occupied, vacant, or rented out. Residence tax is then calculated by multiplying the Yearly Price with the prevailing tax fee, and that is progressive and differs drastically amongst owner-occupied and non-owner-occupied properties. For operator-occupied HDB flats, tax premiums are considerably decrease to motivate residence ownership.