IRAS does not split an annual property-tax bill between buyer and seller.
The seller usually pays the tax billed for the year, and the parties’ conveyancing lawyers privately adjust the prepaid amount at completion.
Separate IRAS liability from party adjustment
IRAS says apportionment is a private arrangement. It does not alter the tax account merely because the parties reimburse each other. Put the IRAS amount and the buyer-seller adjustment on separate rows. (IRAS property-tax payments)
The completion date, handover wording and contract determine which side bears each day. Guessing whether completion day belongs to buyer or seller creates a one-day error. Ask the conveyancing lawyer to state the inclusive and exclusive dates in writing.
| Situation | What changes |
|---|---|
| Seller has fully paid the annual bill | Calculate the buyer reimbursement from the agreed handover date |
| Tax remains unpaid | Clear the statutory liability and show it separately from the private adjustment |
| New condo is completing after TOP | Check developer documents and the purchaser liability start date |
| Contract specifies a different convention | Follow the signed terms and lawyer’s completion statement |
Use the tax actually billed
Annual Value, owner-occupier status or a later revision can change the annual charge. A percentage of the sale price is not a property-tax calculation. Use the current bill and any revised notice available before completion. (IRAS developer information)
A common worksheet divides the annual bill by 365 or 366, then multiplies by the buyer’s portion of the year. The contract remains controlling. Show start date, end date, number of days, annual bill and rounding rule.
Example: If an annual bill is S$3,650 and the agreed buyer period is 100 days in a 365-day year, the simple reimbursement is S$1,000. This is a worked day-count example; the sale contract and lawyer decide the actual period and rounding.
Do not ask IRAS to settle a private dispute
IRAS directs parties to their conveyancing lawyers or developer for apportionment issues. Raise a disputed completion adjustment before signing off the statement.
The conveyancing lawyer usually files the Notice of Transfer within one month, after which correspondence goes to the new owner. The buyer should confirm the property appears in myTax Portal and update payment arrangements.
