HDB flats with $12,000 yearly value to get $80 tax savings

They won't be badly hurt by new tax rules.

According to Knight Frank, most HDB flats will not be affected by the new tax rules since monthly gross rental of HDB flats are generally below $2,500, translating into gross annual rental income below $30,000.

The maximum new property tax rates from 2015 applicable for properties with AV below $30,000 are 4 per cent and 10 percent for owner-occupied and non-owner-occupiedproperties, respectively.

"These rates are similar to the current rates. According to Budget 2013, homes with Annual Values of $12,000, such as a 5-room HDB flat, will experience tax savings of $80 or 33% of their current property tax bill," Knight Frank said.

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