1. What is IRAS Rental Income Tax?

The IRAS (Inland Revenue Authority of Singapore) rental income tax is calculated on the net rental income from properties in Singapore after deducting allowable expenses and reliefs. It forms part of your taxable income for the year.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Rental\ Income \) — Gross rental income received (SGD)
• \( Allowances \) — Deductible allowances (SGD)
• \( Expenses \) — Deductible expenses (SGD)
• \( Tax\ Rate \) — Applicable tax rate (%)

Explanation: The calculation first determines the taxable rental income by subtracting allowable deductions from gross rent, then applies the tax rate to this amount.

3. Importance of Rental Income Tax Calculation

Details: Accurate rental income tax calculation ensures compliance with Singapore tax laws, helps in financial planning, and avoids penalties for underpayment.

4. Using the Calculator

Tips: Enter all amounts in SGD. Include all rental income and only valid deductible expenses. The tax rate should be your applicable personal income tax rate.

5. Frequently Asked Questions (FAQ)

Q1: What expenses are deductible for rental income?
A: Common deductible expenses include property tax, mortgage interest, maintenance costs, agent fees, and fire insurance.

Q2: How is the tax rate determined?
A: Rental income is taxed at your personal income tax rate, which depends on your total taxable income for the year.

Q3: When is rental income tax due in Singapore?
A: Rental income is declared annually in your income tax return, typically due by April 15th each year.

Q4: Are there any special allowances for rental properties?
A: Yes, you may claim standard 15% deduction for expenses (without receipts) or actual expenses (with receipts).

Q5: Is rental income from overseas properties taxable in Singapore?
A: No, only rental income from Singapore properties is taxable in Singapore.