Errant Landlords Jump 50% in Singapore as IRAS Steps Up Rental Income Checks
A growing number of landlords are falling afoul of tax rules in Singapore, with authorities reporting a sharp 50% increase in cases of under-reported or undeclared rental income.
In its latest audit covering 2024 to 2025, the Inland Revenue Authority of Singapore (IRAS) investigated 793 property owners whose tax filings raised red flags over discrepancies in rental income. Of these, 422 landlords were found to have committed various breaches, ranging from under-declaring rental earnings and claiming unrelated expenses to failing to report rental income altogether.
The figure marks a significant jump from around 280 errant landlords penalised in 2023, suggesting that many property owners may still be unclear about their tax obligations despite repeated advisories.
Some landlords reportedly believed that paying property tax, which has recently increased, exempted them from declaring rental income. However, IRAS stressed that property tax and income tax are separate obligations, and rental income must still be accurately reported.
As a result of the latest audit, IRAS recovered about S$4.8 million in additional taxes and penalties, nearly four times the S$1.3 million collected in the previous audit exercise.
The authority has warned that it will not hesitate to take firm enforcement action against those who fail to comply. Submitting inaccurate tax information with the intent to reduce tax liability is considered a serious offence. Offenders may face penalties of up to 200% of the underpaid tax amount, along with fines of up to S$5,000 and possible jail terms of up to three years.
In more severe cases, such as deliberate tax evasion through fraudulent arrangements, penalties can rise to 400% of the undercharged tax, accompanied by fines of up to S$50,000 and imprisonment of up to five years.
With the tax filing deadline approaching on April 18, IRAS is urging landlords to review their submissions carefully and ensure all rental income is properly declared through the myTax portal. Those who notice errors in their filings are advised to amend their tax bills within 30 days.
The authority also encouraged landlords who may have made mistakes in previous years to come forward voluntarily. While there is no time limit on prosecuting tax offences, IRAS noted that penalties may be reduced for those who make timely voluntary disclosures and meet the qualifying conditions.
