Statute Details
- Title: Property Tax (Commercial Property) (Remission) Order
- Act Code: PTA1960-OR19
- Type: Subsidiary Legislation (SL)
- Authorising Act: Property Tax Act (Cap. 254), specifically section 6(5B)
- Current version (as provided): Current version as at 27 Mar 2026
- Revised Edition: 2004 RevEd (31 December 2004)
- Original commencement (as shown in legislative history): 1 May 2003
- Key provisions (from extract): Paragraphs/sections 1–6; First Schedule (Specified Commercial Premises); Second Schedule (Statutory Boards)
What Is This Legislation About?
The Property Tax (Commercial Property) (Remission) Order is a targeted tax relief instrument issued under the Property Tax Act. In plain terms, it provides a remission (reduction) of property tax—or, where applicable, reductions connected to payments in lieu of tax—for certain categories of commercial premises and hotel rooms. The relief is not universal: it applies only to “commercial property” as defined in the Order and only to the extent permitted by the specific remission formulae.
The Order is also time- and computation-specific. The remission described in paragraph 4 is framed around the year 2003, and it contains mechanisms for adjusting the remission if there is a “material change of use” during that year. This makes the Order particularly relevant for practitioners dealing with property tax computations, disputes about classification of premises, and recovery of over-remitted amounts.
Finally, the Order includes important exclusions. Certain premises—especially those already covered by statutory board payment-in-lieu arrangements, and certain buildings assessed as if vacant land—are carved out. The practical effect is that the remission is designed to benefit particular commercial uses while avoiding double relief or relief for premises outside the intended policy scope.
What Are the Key Provisions?
1. Citation and definitions (Paragraphs 1 and 2)
Paragraph 1 provides the short title: the Property Tax (Commercial Property) (Remission) Order. Paragraph 2 defines “commercial property” in a two-part way.
First, “commercial property” includes the premises specified in the First Schedule. Second, it includes any premises used as enumerated commercial categories, such as a shop, office, commercial school, restaurant, nightclub/bar/pub, cinema/theatre, child care centre, amusement centre, health centre, sports and recreation building, and a convention or exhibition centre. This definition is broad in terms of use-based classification.
However, the definition also contains exclusions. It expressly does not include premises used as a business or science park, a petrol station, a serviced apartment, or a warehouse; nor does it include premises used for any industrial purposes. For practitioners, this is a critical boundary: the relief depends on both what the premises are used for and what they are not used for.
2. Application and classification disputes (Paragraph 3)
Paragraph 3 sets out the scope of application. The Order applies to:
- any commercial property; and
- any hotel room in any hotel.
This is significant because it extends beyond premises used for the enumerated commercial activities to include hotel rooms as a separate category. Paragraph 3(2) addresses classification disputes: where a question arises as to whether premises are premises referred to in paragraph 3(1), it is determined by the Comptroller, whose decision is final. This finality clause is important for litigation strategy and administrative law considerations. It suggests that challenges to classification may face procedural hurdles, and practitioners should focus early on evidence of use, tenancy arrangements, and how the premises fit within the definition.
3. Remission of tax and payments in lieu of tax (Paragraph 4)
Paragraph 4 is the core relief provision. It provides remission subject to the exceptions in paragraph 6. The remission differs depending on whether the premises are owned and let by a statutory board specified in the Second Schedule or whether the premises are “any other premises” within paragraph 3(1).
(a) Statutory board premises (paragraph 4(1)(a))
For premises referred to in paragraph 3(1) that are owned and let by a specified statutory board, there is remission of 10% of any payment made in lieu of tax under section 6(7) of the Property Tax Act. This means the relief is not framed as a reduction of “tax” in the ordinary sense, but as a reduction of the payment-in-lieu obligation.
(b) Other premises (paragraph 4(1)(b))
For other premises referred to in paragraph 3(1), the remission is calculated as an aggregate of two components:
- the first $2,000 of the tax payable on the annual value attributable to the premises; and
- for the portion of tax exceeding $2,000, a percentage-based remission:
- 10% of the excess where the premises are referred to in paragraph 3(1)(a) (i.e., commercial property); and
- 30% of the excess where the premises are referred to in paragraph 3(1)(b) (i.e., hotel rooms).
Practically, this creates a more generous remission rate for the portion exceeding $2,000 for hotel rooms (30% versus 10% for other commercial property). The “first $2,000” component is common to both categories for the relevant “other premises” computation, but the differential percentage applies to the excess.
(c) Material change of use adjustment (paragraph 4(2)–(3))
Paragraph 4(2) introduces an adjustment mechanism. Where there is a material change of use of the premises at any time in the year 2003, the Comptroller may reduce the amount of tax remitted as he thinks proper and reasonable. If the remission is reduced, the owner must repay any tax remitted in excess of the reduced amount.
Paragraph 4(3) provides the recovery mechanics: the amount repayable is payable and recoverable in the same manner as taxes under the Act. For practitioners, this is a reminder that remission is not necessarily “locked in” at the outset; it can be revisited based on subsequent factual changes during the relevant year.
(d) Definition of “tax payable” for 2003 (paragraph 4(4))
Paragraph 4(4) defines “tax payable” for the purpose of the remission calculation. It means the tax computed to be payable for year 2003 after taking into account two other remission orders: the Property Tax (Non-Residential Buildings) (Remission) Order 2002 and the Property Tax (Non-Residential Buildings) (Remission) Order 2003. This cross-reference is crucial for accurate computation and for avoiding double-counting or incorrect sequencing of remissions.
4. Refund limitation (Paragraph 5)
Paragraph 5 states that no refund of any tax arising out of the remission granted under paragraph 4 shall be made to any person who is not, on or after 1 May 2003, an owner of the premises in respect of which the remission is granted.
This provision is designed to prevent claims by non-owners (for example, tenants or persons who were not owners as at the relevant date) and to limit the availability of refunds. For transactions involving property transfers around the relevant date, practitioners should consider ownership status and timing carefully.
5. Exceptions and carve-outs (Paragraph 6)
Paragraph 6 sets out three categories where the Order does not apply:
(a) Statutory board premises already covered by payment-in-lieu (paragraph 6(a))
The Order does not apply to premises owned and occupied by any statutory board for which payment in lieu of tax is made under section 6(7) of the Act.
(b) Statutory board premises not in the Second Schedule (paragraph 6(b))
It also does not apply to premises owned and let by a statutory board other than a statutory board specified in the Second Schedule, where payment in lieu of tax is made under section 6(7). This reinforces that the remission for payment-in-lieu is limited to the specific statutory boards listed in the Second Schedule.
(c) Buildings assessed as if vacant land (paragraph 6(c))
Finally, it excludes any building or part thereof situated or being erected on land where the annual value has been assessed as if it were vacant land under section 2(3)(b) of the Act. This is a valuation-based exclusion: if the property’s annual value is treated as vacant land for assessment purposes, the remission does not apply.
How Is This Legislation Structured?
The Order is structured as a short set of operative paragraphs supported by schedules:
- Paragraph 1: Citation.
- Paragraph 2: Definitions, including the detailed definition of “commercial property” with inclusions and exclusions.
- Paragraph 3: Application of the Order, including hotel rooms and the Comptroller’s final decision on classification disputes.
- Paragraph 4: Remission of tax and payments in lieu of tax, including the computation formula, the material change of use adjustment, and the definition of “tax payable” for 2003.
- Paragraph 5: Refund limitation tied to ownership status on or after 1 May 2003.
- Paragraph 6: Exceptions (carve-outs) where the Order does not apply.
- First Schedule: “Specified Commercial Premises” (not reproduced in the extract, but central to the definition).
- Second Schedule: “Statutory Boards” eligible for the payment-in-lieu remission.
For practitioners, the schedules are not optional reading: they determine which premises and which statutory boards fall within the relief regime.
Who Does This Legislation Apply To?
The Order applies to owners and occupiers indirectly through the tax assessment and remission framework, but its operative effect is directed at the premises and the taxpayer/owner who is liable for property tax (or who makes/receives the relevant payment-in-lieu arrangements for statutory boards).
In particular, it applies to (i) commercial property as defined (including specified premises and use-based categories), and (ii) hotel rooms in any hotel. It also applies to certain statutory boards listed in the Second Schedule, but only in the specific scenario where the statutory board owns and lets the relevant premises and payment in lieu of tax is made under section 6(7) of the Property Tax Act.
It does not apply to premises already within certain statutory board payment-in-lieu contexts (owned and occupied by statutory boards), to statutory boards not listed in the Second Schedule, and to buildings assessed as if vacant land. Ownership status is also critical for refunds: only persons who are owners on or after 1 May 2003 can benefit from the remission without being barred by paragraph 5’s refund restriction.
Why Is This Legislation Important?
This Order is important because it provides a structured, formula-based remission that can materially reduce property tax liabilities (or payment-in-lieu obligations) for commercial premises and hotel rooms. The remission is not merely discretionary; it is anchored in defined categories and specific computation rules, including the $2,000 threshold and different remission percentages for commercial property versus hotel rooms.
From a practitioner’s perspective, the most consequential issues tend to be classification and computation. The definition of “commercial property” includes many common business uses, but it also excludes business/science parks, petrol stations, serviced apartments, warehouses, and industrial purposes. Where premises sit near the boundary—such as mixed-use developments, premises with multiple tenants, or facilities that could be characterised as industrial or commercial—evidence of actual use and how the Comptroller will classify the premises becomes central.
Additionally, the Order’s adjustment for “material change of use” in 2003 introduces post-assessment risk. Owners may need to track changes in tenancy, permitted use, and operational reality during the relevant year. Finally, the refund limitation in paragraph 5 can affect claims in property transactions and disputes involving who held ownership as at 1 May 2003.
Related Legislation
- Property Tax Act (Cap. 254) — in particular section 6(5B) (authorising the Order) and section 6(7) (payments in lieu of tax by statutory boards); and section 2(3)(b) (annual value assessed as if vacant land).
- Property Tax (Non-Residential Buildings) (Remission) Order 2002 (G.N. No. S 683/2002) — referenced for computing “tax payable” for year 2003.
- Property Tax (Non-Residential Buildings) (Remission) Order 2003 (G.N. No. S 120/2003) — referenced for computing “tax payable” for year 2003.
Source Documents
This article provides an overview of the Property Tax (Commercial Property) (Remission) Order for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.