Statute Details
- Title: Property Tax (Land Under Development for Owner-Occupied House) (Remission) Order 2013
- Act Code: PTA1960-S726-2013
- Type: Subsidiary Legislation (SL)
- Authorising Act: Property Tax Act (Cap. 254), specifically section 6(8)
- Legislative Purpose (high level): Remits property tax on vacant land while it is under development for an owner-occupied house
- Commencement: 1 January 2014
- Key Provisions: Sections 2–6 (definitions; remission; period; conditions; notification)
- Current Version Status: Current version as at 27 March 2026 (per provided extract)
- Primary Policy Mechanism: Tax remission calculated by reference to the difference between non-residential and owner-occupier residential tax rates
What Is This Legislation About?
The Property Tax (Land Under Development for Owner-Occupied House) (Remission) Order 2013 (“the Order”) is a targeted tax relief measure under Singapore’s Property Tax regime. In practical terms, it addresses a common situation: when an individual owns vacant land and constructs a house on that land for their own residential use, the land may be assessed and taxed at non-residential rates during the construction period. The Order remits (reduces) the property tax on that vacant land during the development phase, provided strict conditions are met.
The relief is designed to bridge the period between (i) assessment of vacant land at non-residential tax rates and (ii) completion of the house and subsequent taxation at owner-occupier residential rates. The remission is not automatic; it depends on compliance with conditions relating to occupancy, ownership, notification to the Comptroller of Property Tax, and the ultimate residential use of the completed house.
Although the Order is short, it is operationally significant for property owners, conveyancers, and tax practitioners advising on development projects. It also interacts with the Building Control Act (for milestones such as TOP and CSC) and with the Property Tax (Rates for Residential Premises) and (Rates for Non-Residential Premises) Orders (for the relevant tax rates).
What Are the Key Provisions?
1. Definitions and key milestones (Section 2)
The Order defines several terms that determine eligibility and timing. Two building-control milestones are central:
- TOP (Temporary Occupation Permit): the temporary occupation permit issued by the Commissioner of Building Control under section 12 of the Building Control Act. If more than one TOP is issued, the first TOP is used.
- CSC (Certificate of Statutory Completion): the certificate of statutory completion issued under section 12 of the Building Control Act. If more than one CSC is issued, the first CSC is used.
The Order also defines “house” as a building (or part of a building) principally used for human habitation and determined by the Comptroller or Chief Assessor to be a complete and separate unit. “Owner” is defined narrowly: it must be an individual (not a company, association, or body of persons) whose name appears in the Valuation List as owner of the house or land.
2. Remission of tax on vacant land (Section 3)
Section 3 is the operative relief provision. It applies where:
- tax is payable on the annual value of vacant land assessed under section 2(3) of the Property Tax Act; and
- the owner constructs a single house on that land.
Where these conditions are met, the Order provides that an amount of tax on the land is remitted for the relevant period and subject to conditions. The remission is computed using a formula expressed in terms of two alternative tax outcomes:
- A: the tax payable on the annual value of the vacant land prior to completion of the house at non-residential tax rates; and
- B: the tax payable on the annual value of the vacant land prior to completion at owner-occupier’s tax rates.
While the extract does not display the full formula text, the structure indicates that the remission is designed to reduce the tax to the level that would have applied if the land were taxed at owner-occupier residential rates rather than non-residential rates during the development period. In effect, the relief targets the “difference” between the two tax regimes for the same annual value.
3. Period of remission (Section 4)
Section 4 sets the temporal boundaries. The remission runs:
- From and including the date of submission of the building plans for the house to the Commissioner of Building Control; and
- To and including the date of issue of the TOP or CSC for the house, whichever is earlier.
Two important limitations apply:
- the remission period cannot exceed 2 years; and
- it cannot include any period before 1 January 2014.
For practitioners, these limits are crucial when advising on project timelines, plan submission dates, and the likely earliest completion milestone (TOP vs CSC).
4. Conditions for remission (Section 5)
Section 5 contains the eligibility conditions. They are cumulative and strict.
Section 5(1)(a): conditions during the applicable period
- Unoccupied land: during the remission period, the land on which the house is being constructed must not be occupied.
- No charges for land use: no rent or fee may be charged or received for any use of the land or any part of it.
- Same owner: the owner of the land must also be the owner of the house being constructed.
- No other property taxed at owner-occupier rates: the owner must not have other property taxed at owner-occupier’s tax rates, unless that other property is taxed at such rate pursuant to specified provisions in the Property Tax (Rates for Residential Premises) Order 2013 (paragraph 4(6) or (7)).
Section 5(1)(b): notification to the Comptroller
The owner must notify the Comptroller of the construction of the house:
- at any time on or after the date of submission of the building plans; and
- no later than 30 days from and including the date of issue of the TOP or CSC (whichever is earlier), or such further time as the Comptroller may allow.
Section 5(1)(c): post-completion residential use
After construction is completed, the house must be principally used or occupied by the owner as residential premises for at least one year from and including the date of issue of the TOP or CSC (whichever is earlier).
Section 5(2): consequences of non-compliance
If any condition is not satisfied, the tax that would otherwise have been remitted becomes payable, and section 36 of the Property Tax Act applies accordingly. Although the extract does not reproduce section 36, practitioners should treat this as a “clawback” mechanism with potential administrative and enforcement consequences (for example, recovery of tax and possible penalties/interest depending on the Property Tax Act’s enforcement framework).
5. Notification form and supporting undertakings (Section 6)
Section 6 specifies the procedural requirements for the notification under section 5(1)(b). The notification must be in the form determined by the Comptroller and must be accompanied by:
- a declaration by the owner that the requirements in section 5(1)(a) are satisfied; or, where any requirements are not satisfied at that time, an undertaking to ensure compliance; and
- an undertaking to comply with the requirement in section 5(1)(c) (the one-year residential use requirement).
This provision is important for risk management. It effectively requires the owner to make representations and commitments that can later be tested against actual circumstances (occupancy, charges, ownership continuity, and residential use).
How Is This Legislation Structured?
The Order is structured as a short, self-contained remission instrument with six sections:
- Section 1: citation and commencement (1 January 2014).
- Section 2: definitions, including building-control milestones (TOP/CSC), “house”, “owner”, and references to residential and non-residential tax rates.
- Section 3: the substantive remission rule for vacant land under development for an owner-occupied house.
- Section 4: the remission period, including the 2-year cap and the “TOP or CSC whichever earlier” endpoint.
- Section 5: conditions for remission, including occupancy restrictions, no rental/fees, ownership continuity, notification deadlines, and the one-year residential use requirement; plus consequences of breach.
- Section 6: notification mechanics, including required declarations/undertakings and the form determined by the Comptroller.
Who Does This Legislation Apply To?
The Order applies to individual owners (not companies or other entities) who own vacant land assessed under the Property Tax Act and construct a single house on that land for owner-occupation. The definition of “owner” and the requirement that the owner of the land is also the owner of the house being constructed are central eligibility constraints.
It also applies only where the land is not occupied during the remission period and where the owner does not charge rent or fees for use of the land. Additionally, the owner must satisfy the “owner-occupier’s tax rates” restriction regarding other properties, subject to limited exceptions referenced to the residential rates Order.
Why Is This Legislation Important?
This Order matters because property tax is an annual charge, and the development period can be financially significant. By remitting tax on vacant land during construction—subject to compliance—it reduces the tax burden that would otherwise apply at non-residential rates. For owners planning to build an owner-occupied home, the relief can materially improve project affordability and cash flow.
From a practitioner’s perspective, the key value of the Order lies in its conditional design. Eligibility depends not only on the construction and completion milestones (plan submission, TOP/CSC) but also on behavioural and factual conditions: the land must remain unoccupied, no rent/fees may be charged, ownership must remain consistent, and the completed house must be used as the owner’s residential premises for at least one year. These conditions create compliance and evidentiary considerations for tax filings and potential disputes.
Finally, the notification and undertaking requirements create a procedural pathway that owners must follow. Missing the notification deadline (or failing to provide the required declaration/undertakings) can jeopardise the remission, and any subsequent breach can trigger recovery of the remitted tax under section 36 of the Property Tax Act. Advisers should therefore treat the Order as both a relief instrument and a compliance framework requiring careful documentation and monitoring through completion and the one-year occupation period.
Related Legislation
- Property Tax Act (Cap. 254) — including section 6(8) (power to make the Order), section 2(3) (assessment of annual value for vacant land), and section 36 (consequences for non-compliance)
- Building Control Act (Cap. 29) — section 12 (issuance of TOP and CSC)
- Property Tax (Rates for Residential Premises) Order 2013 (G.N. No. S 691/2013) — owner-occupier’s tax rates and referenced exceptions
- Property Tax (Rates for Non-Residential Premises) Order 2013 (G.N. No. S 692/2013) — non-residential tax rates
Source Documents
This article provides an overview of the Property Tax (Land Under Development for Owner-Occupied House) (Remission) Order 2013 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.