Statute Details
- Title: COVID-19 (Temporary Measures) (Prescribed Matters for Third Schedule) Regulations 2021
- Act Code: COVID19TMA2020-S21-2021
- Type: Subsidiary Legislation (SL)
- Authorising Act: COVID‑19 (Temporary Measures) Act 2020 (Act 14 of 2020)
- Enacting power: Section 79 of the COVID‑19 (Temporary Measures) Act 2020
- Commencement: 15 January 2021
- Legislative status: Current version as at 27 March 2026
- Key provisions (as provided): Sections 1–5 (definitions; determination of annual income; prescribed amount; determination of average monthly rental income and average monthly income)
- Third Schedule linkage: Paragraph 1(b) and 1(c) of Part 2 of the Third Schedule to the Act
- Related legislation: Income Tax Act (Cap. 134)
What Is This Legislation About?
The COVID‑19 (Temporary Measures) (Prescribed Matters for Third Schedule) Regulations 2021 (“the Regulations”) are subsidiary legislation made under the COVID‑19 (Temporary Measures) Act 2020 (“the Act”). In practical terms, the Regulations help implement a specific part of the COVID‑19 relief framework dealing with specified contracts relating to immovable property—most commonly, leases and licences—where parties may seek temporary relief based on the economic impact of COVID‑19.
The Regulations are not a standalone relief scheme. Instead, they “fill in the blanks” in the Act’s Third Schedule by prescribing (i) how to determine a relevant person’s annual income for a particular reference year (2020), (ii) a specific income threshold amount, and (iii) how to compute average monthly rental income and average monthly income. These computations are then used to determine whether the relevant person meets the conditions set out in Part 2 of the Third Schedule.
For practitioners, the key point is that the Regulations provide the methodology and numerical thresholds necessary to apply the Act’s relief provisions to landlords, tenants, and other parties who qualify as “relevant persons” under the Third Schedule framework. The Regulations therefore matter most when advising on eligibility, documentation, and the calculation of income for the year of assessment 2020.
What Are the Key Provisions?
1. Citation, commencement, and definitions (Sections 1–2)
Section 1 states the Regulations’ citation and commencement: they come into operation on 15 January 2021. Section 2 provides that the terms “basis period” and “year of assessment” take their meanings from section 2(1) of the Income Tax Act (Cap. 134). This is important because the income calculations in later sections depend on the “basis period” and the “year of assessment” used in Singapore income tax concepts.
2. Determination of annual income (Section 3)
Section 3 addresses how to determine the “annual income” of the relevant person for the purposes of paragraph 1(b) of Part 2 of the Third Schedule. The relevant person is defined in the Regulations as an individual, sole proprietor, or shareholder (depending on the case) who is seeking to rely on the Third Schedule relief mechanism.
The Regulations adopt a two-track approach based on whether the lease/licence was in force for at least 30 days during the basis period for the year of assessment 2020:
- Lease/licence in force for 30 days or more: annual income is the total income for the period that constitutes the basis period for the year of assessment 2020.
- Lease/licence not in force, or in force for less than 30 days: annual income is determined for the period from 1 January 2020 to 31 December 2020 (both inclusive).
In plain language, Section 3 ensures that if the relevant person’s property arrangement was active only briefly in 2020 (or not active at all during the relevant basis period), the income is still assessed against a defined 2020 window. This reduces ambiguity and prevents parties from manipulating the “basis period” concept to obtain an artificially favourable income assessment.
3. Prescribed amount of annual income (Section 4)
Section 4 prescribes the income ceiling for the purposes of paragraph 1(b) of Part 2 of the Third Schedule. It provides that the prescribed amount that the relevant person’s annual income must not exceed is $107,500.
This is a central eligibility threshold. Practitioners should treat $107,500 as the bright-line figure for the annual income test under paragraph 1(b). In advice, counsel should therefore focus on: (i) whether the client is a “relevant person” within the meaning of the Regulations, (ii) how annual income is computed under Section 3, and (iii) whether the computed annual income is within the $107,500 cap.
4. Determination of average monthly rental income and average monthly income (Section 5)
Section 5 is the most technical provision. It addresses the computations required for the purposes of paragraph 1(c) of Part 2 of the Third Schedule, namely:
- the relevant person’s average monthly rental income derived from the lease/licence; and
- the relevant person’s average monthly income.
The Regulations use formulas expressed through variables Q, R, and S (and the same R is used across the calculations). While the extract provided does not reproduce the full formula text, the structure is clear: the Regulations compute a total amount (Q for rental income; S for income) over a defined period, then divide by the number of days (R) to arrive at an average monthly figure.
Key mechanics:
- Q (rental income total): depends again on whether the lease/licence was in force for 30 days or more in the basis period for year of assessment 2020.
- If in force for 30 days or more: Q is the rental income from that lease/licence for the period it was in force within the basis period.
- If not in force during or in force for less than 30 days: Q is rental income determined under the lease/licence terms for the period from the lease/licence commencement date to 31 December 2020.
- R (number of days): corresponds to the same period used to compute Q.
- If the 30-day threshold is met: R is the number of days in the basis period during which the lease/licence was in force.
- If not: R is the number of days from the lease/licence commencement date to 31 December 2020.
- S (income total): mirrors the Q logic but for the relevant person’s broader income (not only rental income). Again, it depends on the 30-day threshold:
- If in force for 30 days or more: S is the relevant person’s income for the period when the lease/licence was in force within the basis period.
- If not: S is the relevant person’s income for the period from the lease/licence commencement date to 31 December 2020, determined in accordance with the lease/licence terms.
Special rule for shareholder arrangements (Section 5(5))
Section 5(5) contains a particularly important interpretive rule. It states that where the relevant person is a shareholder of a company incorporated solely to hold interest in any immovable property, the “rental income” of that relevant person includes dividends or other moneys received from the company relating to the rental income derived from the lease/licence of the immovable property.
This provision is designed to prevent form-over-substance outcomes in property holding structures. In many real-world cases, rental income is channelled through a property-holding company and distributed to shareholders. Section 5(5) ensures that such distributions are treated as rental income for the Third Schedule calculations.
How Is This Legislation Structured?
The Regulations are structured as a short set of provisions (Sections 1–5) that operate as a computational “schedule” to the Act’s Third Schedule. The structure is:
- Section 1: Citation and commencement.
- Section 2: Definitions by reference to the Income Tax Act (basis period and year of assessment).
- Section 3: Determination of annual income for paragraph 1(b) of Part 2 of the Third Schedule.
- Section 4: Prescribed annual income amount (income cap of $107,500) for paragraph 1(b).
- Section 5: Determination of average monthly rental income and average monthly income for paragraph 1(c), including the special shareholder/company rule.
Who Does This Legislation Apply To?
The Regulations apply to persons who fall within the Third Schedule’s framework and are treated as “relevant persons” for the purposes of the prescribed computations. As stated in Section 3, the relevant person is an individual, sole proprietor, or shareholder (as the case may be). These are the categories whose income is assessed against the prescribed thresholds and calculation methods.
In addition, Section 5(5) specifically addresses a common corporate structuring scenario: where the relevant person is a shareholder of a company incorporated solely to hold interest in immovable property. In that case, the Regulations ensure that dividends or other distributions connected to rental income are included in the rental income computation.
Why Is This Legislation Important?
Although the Regulations are brief, they are highly consequential in COVID‑19 property relief disputes and eligibility assessments. The Act’s Third Schedule relief mechanism depends on whether a relevant person meets income-based criteria. The Regulations provide the exact numerical threshold ($107,500) and the calculation methodology for annual income and average monthly income/rental income.
From a practitioner’s perspective, the Regulations affect:
- Eligibility analysis: whether the client’s income falls below the prescribed cap and whether the average monthly income/rental income computations satisfy the Third Schedule conditions.
- Evidence and documentation: counsel must obtain the underlying income figures, rental income statements, lease/licence commencement dates, and—where applicable—company dividend/distribution records.
- Structuring and interpretation: Section 5(5) prevents avoidance through property-holding companies, which is critical when advising shareholders and corporate property vehicles.
Finally, the Regulations’ reliance on the Income Tax Act concepts (“basis period” and “year of assessment”) means that tax accounting and tax filing positions may be relevant to the calculations. Advisers should therefore coordinate legal and tax perspectives to ensure that the income figures used align with the statutory meaning of “total income” and the relevant basis period.
Related Legislation
- COVID‑19 (Temporary Measures) Act 2020 (Act 14 of 2020) — in particular, Section 79 (making power) and the Third Schedule (Part 2, paragraphs 1(b) and 1(c)).
- Income Tax Act (Cap. 134) — definitions of “basis period” and “year of assessment” (Section 2(1)).
Source Documents
This article provides an overview of the COVID-19 (Temporary Measures) (Prescribed Matters for Third Schedule) Regulations 2021 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.