How do I report rental income for tax purposes in Singapore?

If you rent out a property in Singapore, you are required to declare the rental income in your income tax return. Rental income is taxed as part of your total personal income at the applicable progressive tax rates.

What to declare:

• Gross rental income: The total rent received or receivable during the year, including any service charges, maintenance fees, or furniture rental paid by the tenant.

Allowable deductions against rental income:

You can deduct the following property-related expenses incurred during the rental period:

• Property tax paid on the property.
• Fire insurance premiums.
• Mortgage interest on loans taken to purchase the property (interest only, not principal repayment).
• Maintenance and repair costs: Repairs to the property, painting, plumbing, and electrical works. However, renovation or improvement costs are not deductible.
• Agent's commission for securing tenants.
• Furniture and fittings: Wear and tear allowance if you rent out a furnished property.

Deemed expenses option: If tracking actual expenses is difficult, IRAS allows you to claim 15% of gross rent as deemed expenses for residential properties. This means you only need to declare 85% of gross rent as net rental income. Note that if you use the 15% deemed expenses, you cannot also claim specific deductible expenses.

How to file:

• Report rental income in Part 3 (Rent from Property) of your income tax return.
• Complete the rental income worksheet detailing gross rent, expenses, and net rental income.
• Retain records and receipts for 5 years in case of IRAS audit.

Vacancy periods: Expenses incurred during periods when you are actively seeking tenants are still deductible.