Statute Details
- Title: Property Tax (Non-Residential Buildings) (Remission) (No. 2) Order 2001
- Act Code: PTA1960-S553-2001
- Legislation Type: Subsidiary Legislation (Order)
- Authorising Act: Property Tax Act (Cap. 254), specifically section 6(5B)
- Enacting Authority: Minister for Finance
- Citation: S 553/2001
- Deemed Commencement: 1 July 2001
- Expiry / End Date: 31 December 2002 (both dates inclusive)
- Key Subject Matter: Remission of property tax and payments in lieu of tax for certain non-residential buildings
- Key Provisions: Sections 1–4; Schedule (statutory boards eligible for higher remission)
- Status (as provided): Current version as at 27 Mar 2026
What Is This Legislation About?
The Property Tax (Non-Residential Buildings) (Remission) (No. 2) Order 2001 is a targeted tax relief instrument. In plain terms, it provides a remission (i.e., a reduction) of property tax—or, where applicable, payments made in lieu of property tax—for certain non-residential buildings in Singapore during a defined period.
The Order applies to buildings (or parts of buildings) that are permitted for use under the Planning Act for purposes other than human habitation. This means it is aimed at commercial, industrial, institutional, and other non-residential uses, rather than residential accommodation.
Crucially, the remission is not uniform. The Order distinguishes between (i) buildings owned and let by specified statutory boards listed in the Schedule, and (ii) other qualifying buildings. It also contains exclusions to prevent double counting or to ensure the remission does not apply in situations where payments in lieu of tax are already structured differently, or where the annual value is assessed on a “vacant land” basis.
What Are the Key Provisions?
Section 1 (Citation and commencement) sets the legal identity and timing of the Order. It may be cited as the Property Tax (Non-Residential Buildings) (Remission) (No. 2) Order 2001. The Order is “deemed” to have come into operation on 1 July 2001, even though it was made on 2 November 2001. This is a common legislative technique to align relief with an earlier tax period. The Order then remains in force until 31 December 2002 (inclusive), meaning the remission regime is time-limited.
Section 2 (Remission of tax and payments in lieu of tax) is the core relief provision. It provides that, subject to section 3, there shall be a remission of specified amounts in respect of any qualifying building or part thereof. The qualifying criterion is tied to the Planning Act: the building must be permitted to be used for any purpose other than for human habitation.
The remission calculation differs depending on the owner/letting arrangement:
- Statutory boards listed in the Schedule: For a building (or part) that is owned and let by a statutory board specified in the Schedule, the remission is 30% of any payment made in lieu of tax under section 6(7) of the Property Tax Act.
- All other qualifying cases: For “any other case,” the remission is an aggregate relief on the tax payable. Specifically, it is:
- 100% of the tax payable on the first $80,000 of the building’s annual value; and
- 30% of the tax payable on the portion of annual value exceeding $80,000.
Practically, this structure creates a progressive remission effect: smaller annual values receive full relief up to a threshold, while higher annual values receive partial relief on the excess.
Section 3 (Application of Order) sets out important exclusions. Even if a property appears to be non-residential, the remission will not apply if any of the listed conditions are met. The exclusions include:
- Buildings owned and occupied by a statutory board where payment in lieu of tax is made under section 6(7) of the Property Tax Act. (This prevents relief where the statutory board is not merely letting the property but also occupying it, and where the payment-in-lieu framework already applies.)
- Buildings owned and let by a statutory board not specified in the Schedule but still subject to payment in lieu of tax under section 6(7). (This ensures that only the scheduled statutory boards receive the specific 30% remission on payments in lieu.)
- Buildings situated or being erected on land assessed as if vacant land under section 2(3)(b) of the Property Tax Act. (Where the annual value is determined on a vacant-land basis, the remission is withheld.)
- Buildings on demarcated “excess land” under section 2(5) of the Property Tax Act, where the annual value has been separately assessed by deeming that part of the land as vacant land. (Again, the remission is excluded where the valuation methodology treats the relevant land as vacant.)
Section 4 (Revocation) revokes an earlier remission order: the Property Tax (Non-Residential Buildings) (Remission) Order 2001 (G.N. No. S 398/2001). This indicates that the 2001 “No. 2” Order replaced the earlier remission regime, likely to adjust the relief formula, scope, or eligible statutory boards. For practitioners, revocation matters because it affects which remission rules apply to which tax periods and properties.
The Order was made by the Permanent Secretary, Ministry of Finance (LIM SIONG GUAN) on 2 November 2001, under the enabling powers in the Property Tax Act.
How Is This Legislation Structured?
The Order is structured in a straightforward manner typical of subsidiary tax instruments:
- Enacting Formula: Confirms the Minister’s power under section 6(5B) of the Property Tax Act.
- Section 1: Citation and commencement (including the deemed commencement date and the expiry date).
- Section 2: Substantive remission rules, including the two-tier calculation (scheduled statutory boards vs other cases).
- Section 3: Scope limitations and exclusions, including valuation-based exclusions and statutory board ownership/occupation/letting distinctions.
- Section 4: Revocation of the earlier “No. 1” remission order.
- The Schedule: Identifies the statutory boards eligible for the specific remission treatment under section 2(a). (The extract provided does not list the schedule entries, but the Schedule is legally significant for determining eligibility.)
Who Does This Legislation Apply To?
This Order applies to property tax relief for non-residential buildings or parts of buildings that are permitted for use under the Planning Act for purposes other than human habitation. The relief is relevant to taxpayers and property owners whose properties fall within that planning-use category and whose property tax (or payment in lieu of tax) is computed under the Property Tax Act framework.
In addition, the Order specifically addresses the position of statutory boards through two mechanisms: (i) a higher-level remission for statutory boards listed in the Schedule when they own and let the relevant buildings, and (ii) exclusions where statutory boards either occupy the buildings or are not scheduled but still make payments in lieu under section 6(7). Therefore, eligibility is not only about the building’s use, but also about the ownership and letting/occupation arrangement and the valuation basis used for annual value.
Why Is This Legislation Important?
This Order is important because it provides a concrete, formula-based remission that can materially reduce property tax liabilities (or payments in lieu of tax) for qualifying non-residential properties during the specified period. For practitioners advising property owners, investors, or statutory board-related entities, the remission can affect cash flow, budgeting, and the expected tax cost of holding or leasing non-residential premises.
From an enforcement and compliance perspective, the exclusions in section 3 are just as significant as the remission itself. Many disputes in tax remission regimes arise from misunderstandings about whether a property is truly within scope—particularly where annual value is assessed on a “vacant land” basis or where statutory board arrangements differ (owned and occupied vs owned and let). The Order’s exclusions are designed to prevent remission from being claimed where the underlying valuation or payment-in-lieu structure already reflects a different tax treatment.
Finally, the revocation in section 4 means that practitioners must be careful about which remission order applies to the relevant tax period. Because section 1 deems commencement from 1 July 2001 and the Order runs until 31 December 2002, the “No. 2” Order likely governs relief during that window, superseding the earlier S 398/2001 order. When advising on historical assessments or remission claims, counsel should align the property’s assessment period with the correct remission instrument.
Related Legislation
- Property Tax Act (Cap. 254) — in particular sections 2 (annual value and deeming rules), 6(5B) (power to make remission orders), and 6(7) (payments in lieu of tax by statutory boards).
- Planning Act (Cap. 232) — for the permitted use of buildings and the non-residential (non-human habitation) planning-use criterion.
- Legislation Timeline — to confirm the correct version and commencement/expiry dates for remission claims.
Source Documents
This article provides an overview of the Property Tax (Non-Residential Buildings) (Remission) (No. 2) Order 2001 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.