The HDB Once-a-year Benefit would be the believed gross annual lease a residence could command if it were rented out, excluding home furniture, furnishings, and servicing service fees. This value, determined by the Inland Income Authority of Singapore (IRAS), is a vital Think about calculating the once-a-year assets tax and is not according to the flat's market place sale selling price. IRAS reviews the Annual Value of all Qualities each year, bearing in mind the industry rentals of comparable or equivalent Houses during the vicinity, as well as the home's dimension, area, and problem. The best way the Yearly Worth is determined remains exactly the same regardless of whether the flat is operator-occupied, vacant, or rented out. Assets tax is then more info calculated by multiplying the Once-a-year Price with the prevailing tax fee, and that is progressive and differs substantially among owner-occupied and non-operator-occupied Attributes. For proprietor-occupied HDB flats, tax costs are substantially reduce to encourage dwelling possession.