Deductions against Rental Income

You have to report rental income from letting of properties and you can claim deductions of rates and irrecoverable rent, and enjoy statutory allowance for repairs and outgoings.

Rates Paid by Owner(s)

Only rates agreed to be paid and paid by you is deductible. Do not claim deduction for rates already offset by rates concession. Government rent charged with rates under the same quarterly "Demand for Rates and/or Government Rent" is not deductible for property tax purposes. Please make sure not to include the amount of government rent in the claim for deduction of rates so as to avoid an incorrect claim.

Irrecoverable Rent

Only the amount of rent confirmed to be irrecoverable during the year is deductible. The amount of rent recovered must be reported as rental income for the year of recovery in the relevant tax return for that year of assessment.

More on irrecoverable rent

Statutory Allowance for Repairs & Outgoings

You can have statutory allowance for repairs and outgoings of your properties. Learn more from the following link about the points to note when claiming the statutory allowance, with examples provided.

Information about statutory allowance for repairs & outgoings
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Last revision date: April 2023