Statute Details
- Title: Property Tax (Land Under Development for Owner-Occupied House) (Remission) Order 2013
- Act Code: PTA1960-S726-2013
- Legislative Type: Subsidiary Legislation (SL)
- Authorising Act: Property Tax Act (Cap. 254)
- Authorising Provision: Powers conferred by section 6(8) of the Property Tax Act
- Commencement: 1 January 2014
- Enacting Instrument Number: S 726/2013
- Key Provisions: Sections 1–6 (notably remission mechanics, duration, conditions, notification, and consequences of non-compliance)
- Most Relevant Concepts: vacant land, owner-occupied house, building plans, TOP/CSC, remission of property tax, notification to Comptroller
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 essence, it provides a remission of property tax on vacant land that is being developed to construct a single house intended for owner-occupation by the landowner.
Under the Property Tax Act, property tax is generally assessed based on the annual value of property. Vacant land is typically taxed at non-residential tax rates until it is developed and becomes part of a residential property. The Order addresses a practical problem: during construction, the landowner may face non-residential rates even though the land is being actively developed for a home to be occupied by the owner. The remission is designed to reduce that interim tax burden.
The scope is narrow and conditional. The relief applies only where (i) tax is payable on the annual value of vacant land assessed under the Property Tax Act, and (ii) the owner constructs a single house on that land. The remission is time-limited, depends on compliance with strict conditions (including no occupation or rental during the development period), and requires timely notification to the Comptroller.
What Are the Key Provisions?
1. Citation and commencement (Section 1)
The Order may be cited as the Property Tax (Land Under Development for Owner-Occupied House) (Remission) Order 2013 and comes into operation on 1 January 2014. This matters for determining the maximum remission period and for excluding any remission period that would fall before the commencement date.
2. Definitions (Section 2)
The definitions are central because the remission depends on specific administrative milestones and tax rate categories. Key defined terms include:
- “CSC” (certificate of statutory completion): the CSC issued by the Commissioner of Building Control under section 12 of the Building Control Act. If multiple CSCs are issued, the first CSC is used.
- “TOP” (temporary occupation permit): the TOP issued by the Commissioner of Building Control under section 12 of the Building Control Act. If multiple TOPs are issued, the first TOP is used.
- “house”: a building or part of a building principally used, constructed or adapted for human habitation, and determined by the Comptroller or Chief Assessor to be a complete and separate unit.
- “owner”: an individual (not a company/association/body of persons) whose name appears in the Valuation List as owner of the house or land.
- “owner-occupier’s tax rates” and “non-residential tax rates”: rates specified in the relevant Property Tax (Rates) Orders for residential and non-residential premises.
These definitions ensure that the remission is tied to (a) the correct type of property and (b) the correct tax rate framework, and that the relief is limited to individual owner-occupiers.
3. Remission of tax on vacant land (Section 3)
Section 3 is the operative relief provision. It provides that 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 the land, then (subject to the Order) there shall be remitted an amount of tax computed by a formula.
While the extract does not display the formula in full text, the variables are clearly defined:
- A = the tax payable on the annual value of the vacant land prior to completion of the construction of the house at non-residential tax rates.
- B = the tax payable on the annual value of the vacant land prior to completion of the construction of the house at owner-occupier’s tax rates.
Practically, the remission is designed to bridge the gap between what the landowner would pay under non-residential rates during development and what they would pay under owner-occupier residential rates. The remission therefore reduces the interim tax cost to align more closely with the eventual owner-occupied residential treatment.
4. Period of remission (Section 4)
The remission is not open-ended. It runs from:
- Start: the date of submission of the building plans for the house to the Commissioner of Building Control; and
- end: the date of issue of the TOP or CSC for the house, whichever is earlier.
Two important limits apply:
- Maximum duration: the period shall not exceed 2 years.
- No pre-commencement remission: the period shall not comprise any period before 1 January 2014.
For practitioners, these limits are often where relief is won or lost. Delays in construction can reduce the remission if the 2-year cap is reached. Conversely, early completion can preserve the full intended remission window.
5. Conditions for remission (Section 5)
Section 5 imposes the most significant compliance requirements. The remission is conditional on satisfying all conditions in paragraph 5(1).
(a) Development-phase conditions (Section 5(1)(a))
During the applicable period under Section 4, the land must not be occupied and must not be monetised:
- No occupation: the land on which the house is being constructed is not occupied.
- No rent/fees: no rent or fee is charged or received for any use of the land or any part thereof.
- Same owner: the owner of the land is also the owner of the house being constructed.
- Owner-occupier tax-rate exclusivity: no other property of the owner is taxed at owner-occupier’s tax rates, unless that property is taxed at such rate pursuant to specified provisions in the residential rates order (paragraph 4(6) or (7) of the Property Tax (Rates for Residential Premises) Order 2013).
This reflects a policy choice: the remission is intended for genuine owner-occupation and not for speculative development or situations where the owner already benefits from owner-occupier residential rates for other properties (subject to narrow exceptions).
(b) Notification requirement (Section 5(1)(b))
The owner must notify the Comptroller of the construction at any time:
- on or after the date of submission of the building plans; but
- 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.
The notification is not merely procedural; it is a condition for remission. Failure to notify within time can trigger loss of the remission.
(c) Post-completion occupation requirement (Section 5(1)(c))
After completion, 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). This is a substantive “use” condition ensuring the relief is linked to actual owner-occupation.
6. Consequences of non-compliance (Section 5(2))
If any condition in Section 5(1) 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, in practice this typically concerns recovery/adjustment mechanisms and may involve interest, additional tax, or enforcement consequences depending on the Act’s framework.
7. Notification form and supporting documents (Section 6)
The notification referred to in Section 5(1)(b) must be in the form the Comptroller determines and must be accompanied by:
- (a) a declaration by the owner that the requirements in Section 5(1)(a) are satisfied, or an undertaking to ensure they will be complied with for any requirements not satisfied at the time of notification; and
- (b) an undertaking to comply with the requirement in Section 5(1)(c) (the one-year residential use/occupation requirement).
This section underscores that the Comptroller expects both factual declarations and forward-looking undertakings, which can be relevant for later compliance checks and recovery if the conditions fail.
How Is This Legislation Structured?
The Order is structured as a short, self-contained instrument with six sections:
- Section 1: Citation and commencement (effective date).
- Section 2: Definitions (key terms such as CSC, TOP, house, owner-occupier and non-residential tax rates).
- Section 3: Substantive remission rule and computation framework (vacant land → single owner-occupied house).
- Section 4: Duration of remission (from building plan submission to earlier of TOP/CSC; capped at 2 years; no pre-1 Jan 2014 period).
- Section 5: Conditions for remission (no occupation/rent, same owner, exclusivity of owner-occupier rates, notification within time, one-year residential use after completion; consequences if conditions not met).
- Section 6: Notification mechanics (form, declaration/undertakings).
Who Does This Legislation Apply To?
The Order applies to individual owners (not companies or other entities) who have vacant land assessed under the Property Tax Act and who construct a single house on that land for owner-occupation. The landowner must be the same person who owns the house being constructed, and the relief is tied to the owner’s tax-rate position under the residential rates framework.
It also applies only within the defined development and completion milestones. The remission period is anchored to administrative events under the Building Control Act (submission of building plans; issue of TOP or CSC). Therefore, the Order is best understood as a bridge between the building control process and the property tax assessment outcomes.
Why Is This Legislation Important?
For property owners and their advisers, the Order can materially reduce property tax during the construction phase. Without remission, vacant land under development may be taxed at non-residential rates, which can be significantly higher than owner-occupier residential rates. The remission effectively reallocates part of that interim tax burden to reflect the owner’s intended residential use.
From a compliance perspective, the Order is also important because it is condition-driven. The relief depends on maintaining vacancy and non-commercial use during construction, ensuring the owner does not charge rent or fees, meeting strict notification timelines, and committing to at least one year of residential occupation after completion. Practitioners should treat these as enforceable obligations with potential clawback consequences under the Property Tax Act if conditions are not satisfied.
Finally, the 2-year cap and the “whichever is earlier” rule for TOP/CSC make timing critical. Advisers should coordinate building control milestones, internal documentation, and notification submissions to preserve eligibility and avoid inadvertent loss of remission.
Related Legislation
- Property Tax Act (Cap. 254) — including section 6(8) (authorising power) and section 36 (consequences for non-compliance)
- Building Control Act (Cap. 29) — including 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 relevant exceptions referenced in Section 5(1)(a)(iv)
- 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.