Edition and option
Third edition 30 January 2026 follows 5 June 2015 and 18 March 2016 editions. From YA 2016 individuals deriving passive section 10(1)(f) residential rent in Singapore may replace actual non-interest expenses with 15% of gross rent, plus separately allowable actual mortgage interest under section 14(1). Gross passive rent includes furniture/fittings rent and tenant-paid maintenance. It does not cover property-letting trade income under section 10(1)(a).
Residential definition and all non-residential exclusions
Eligible houses or habitation-adapted flats/condominiums have one annual value in the valuation list and residential Planning Act permission. If any part is permitted for non-residential use at any time while rent arises, the property fails, even if the tenant uses it residentially. Examples include childcare, dormitories, sports/recreation club accommodation, chalets, student care, kindergarten, welfare homes, hospitals/hospices, rehabilitation/convalescence/nursing facilities, hotels/backpacker hostels/boarding or guest houses, serviced apartments, staff quarters and student boarding/hostels.
Three exclusions and same-year consistency
No deemed claim where no deductible non-interest cost was incurred, rent comes through a partnership or property is held under trust. If eligible cost such as property tax exists, 15% may exceed actual cost: S$10,000 rent can claim S$1,500. For multiple tenanted residential properties, one individual must use actual or deemed consistently in the same YA, not whichever is better for each property. A new choice is possible in a later YA.
YA 2026 comparison
Mr X rented throughout 2025 at S$4,000 monthly: gross S$48,000. Other deductible costs were S$7,000 and loan interest S$9,500. Actual method gives 48,000−9,500−7,000=S$31,500 net. Deemed method uses 15%×48,000=S$7,200 plus the same interest, leaving S$31,300. Loan principal is not substituted for deductible interest.
Co-owners choose independently
A, B and C each received one-third rent S$10,000, with one-third actual costs S$1,560 out of S$4,680 total. A and B chose deemed S$1,500 each; C could choose evidenced actual S$1,560. C’s later expense disallowance does not alter A/B’s deemed claims. This independence between owners differs from one owner’s consistent choice across properties.
Property examples in the FAQs
A residential plus commercial portfolio can apply deemed only to residential, with actual commercial costs. Non-residential uses differ too widely for the proxy. A single-annual-value shophouse with coffee-shop ground floor and residential upper floor fails; a terrace partly permitted non-residential fails even with residential-only tenant; a kindergarten-permitted semi-detached house fails. HDB-room rent and residential subletting qualify if deductible non-interest costs exist. A non-resident individual is eligible; a property-letting business must use actual trade expenses.
Filing, evidence and changing after assessment
Electronic filing calculates deemed costs on pre-filled/declared gross rent; opt out by entering actual costs. Paper filers declare rent and choose the deduction. Deemed-only claims do not require retaining underlying rental-expense records, but actual interest or actual-expense claims need five years’ evidence from the relevant YA, available for audit. To change a deemed decision to actual after assessment, notify the Comptroller within thirty days of the NOA. The 2016 amendment clarified property definition and FAQs; the 2026 revision updated Annex A. Contact IRAS through Contact Us → Individual Income Tax.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗