Statute Details
- Title: Property Tax (Non-Residential Buildings) (Remission) Order 1998
- Act Code: PTA1960-S262-1998
- Type: Subsidiary Legislation (SL)
- Authorising Act: Property Tax Act (Cap. 254), specifically section 6(5B)
- Enacting authority: Minister for Finance
- Commencement / Effect: 1 July 1998 to 30 June 2001
- Key provisions (as extracted): Sections 1–3
- Remission rates: 55% (1 Jul 1998–30 Jun 2000); 25% (1 Jul 2000–30 Jun 2001)
- Exclusions: Statutory boards with payment in lieu of tax; certain vacant-land deeming rules; excess land; rent-controlled premises; HDB/URA-related exempt premises under the Control of Rent Act
- Amendment notes in the timeline: Amended by S 29/1999 (effective 1 Jul 2000) and S 109/2000 (wef 1 Jul 2000) as reflected in the remission table
What Is This Legislation About?
The Property Tax (Non-Residential Buildings) (Remission) Order 1998 (“the Order”) is a targeted tax relief instrument made under the Property Tax Act. In plain terms, it temporarily reduces property tax payable on qualifying non-residential buildings or parts of buildings—specifically, those permitted for use under Singapore’s Planning Act for purposes other than human habitation.
The Order operates as a remission (a reduction) rather than a full exemption. It sets out a time-limited remission schedule: a higher remission rate applies for the earlier part of the period (55% from 1 July 1998 to 30 June 2000), and a lower remission rate applies thereafter (25% from 1 July 2000 to 30 June 2001). This structure indicates a policy of phased relief rather than a permanent benefit.
Just as importantly, the Order is not universally applicable. It contains a set of exclusions for particular categories of properties and occupiers—most notably properties owned and occupied by statutory boards where payment in lieu of tax is made, and certain premises affected by rent control and related exemptions. These exclusions ensure that the remission does not duplicate other fiscal arrangements or interfere with the operation of other statutory regimes.
What Are the Key Provisions?
Section 1 (Citation and commencement): This is the procedural gateway. The Order may be cited as the Property Tax (Non-Residential Buildings) (Remission) Order 1998. It “shall have effect from 1st July 1998 to 30th June 2001.” For practitioners, this means the remission is time-bound. Any claim for remission must align with the relevant tax period falling within that effective window.
Section 2 (Remission of tax): This is the core substantive provision. The remission applies “where any building or part thereof is permitted to be used under the Planning Act … for any purpose other than human habitation.” The trigger is therefore twofold: (1) the building (or part) must be “permitted to be used” under the Planning Act, and (2) the permitted purpose must be “other than human habitation.” The phrase “permitted to be used” is significant: it points to planning permission/allowance rather than mere actual use. In practice, lawyers advising clients should ensure that the relevant use is properly reflected in the planning permissions or approvals governing the property’s permitted use.
The remission is quantified by reference to the period of remission:
- 1 July 1998 to 30 June 2000: remission of 55% of the tax payable in respect of the qualifying building or part.
- 1 July 2000 to 30 June 2001: remission of 25% of the tax payable.
As reflected in the extracted text, the remission table includes an annotation indicating amendments effective from 1 July 2000. Practically, this means that if advising on a property’s tax liability across multiple years, the remission rate may change midstream depending on the tax period.
Section 3 (Application of Order): Section 3 sets out a list of categories to which the Order “shall not apply.” This is where many disputes may arise, because a property may otherwise appear to qualify as non-residential under the Planning Act but still be excluded due to its ownership, location, or tenancy/rent-control status.
The exclusions include:
- Statutory boards with payment in lieu of tax: The Order does not apply to buildings or parts owned and occupied by any statutory board for which payment in lieu of tax is made under section 6(7) of the Property Tax Act.
- Statutory boards as lessors (with limited exceptions): It also does not apply to buildings or parts owned and let by a statutory board (other than specified bodies) where payment in lieu of tax is made under section 6(7). The text lists exceptions for certain statutory boards: Housing and Development Board (HDB), Urban Redevelopment Authority (URA), Jurong Town Corporation (JTC), Civil Aviation Authority of Singapore (CAAS), and Public Utilities Board (PUB). This carve-out is important: it suggests that some statutory boards may be treated differently for remission purposes.
- Vacant-land deeming under the Property Tax Act: The Order does not apply to buildings or parts 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.
- Excess land demarcation: It also does not apply to buildings or parts situated or being erected on “excess land” (demarcated under section 2(5) of the Act) where the annual value has been separately assessed by deeming that part of the land as vacant land.
- Rent-controlled premises: It excludes premises in respect of which a standard rent is being paid under the Control of Rent Act (Cap. 58).
- HDB/URA exempt premises under rent control: It excludes premises exempted under section 30 of the Control of Rent Act and occupied by a person under a tenancy agreement with or a temporary occupation licence from HDB or URA.
For practitioners, these exclusions require careful fact-finding. The exclusion list is not merely technical; it can determine whether the remission is available at all. For example, a client may have a building permitted for non-residential use but still be excluded if the property’s annual value is being assessed on a vacant-land basis due to statutory deeming rules, or if the premises are subject to rent control arrangements.
How Is This Legislation Structured?
The Order is structured in a compact, three-section format typical of subsidiary legislation that grants a specific fiscal relief:
- Section 1: Citation and commencement/effect period.
- Section 2: Substantive remission—what triggers it (Planning Act permitted non-habitation use) and the remission rates by time period.
- Section 3: Application and exclusions—categories of properties/premises to which the remission does not apply.
Although the extract does not show further parts, the Order’s operative effect is entirely contained within these three provisions, with cross-references to the Planning Act, the Property Tax Act, and the Control of Rent Act.
Who Does This Legislation Apply To?
The Order applies to property tax assessments for buildings (or parts of buildings) that meet the Planning Act “permitted use” criterion for purposes other than human habitation. The remission is therefore relevant to property owners, occupiers, and any parties involved in property tax computations and appeals—particularly where the property’s permitted use and tax assessment classification are in issue.
However, the Order’s exclusions mean that not all non-residential properties will benefit. It does not apply where the property falls within the statutory board payment-in-lieu framework, where the annual value is assessed as vacant land (including excess land deeming), or where the premises are subject to rent control or related exemptions under the Control of Rent Act. Accordingly, the practical applicability depends on both the planning status of the premises and the tax/tenancy classification under the Property Tax Act and Control of Rent Act.
Why Is This Legislation Important?
Although the Order’s effect period is limited to 1 July 1998 to 30 June 2001, it remains important for practitioners dealing with historical property tax assessments, remission claims, or disputes that reference earlier tax years. In Singapore practice, tax relief instruments can be relevant in retrospective reviews, audit adjustments, or when determining the correct treatment of a property for a past period.
From a substantive perspective, the Order illustrates how Singapore administers targeted fiscal relief by linking property tax remission to planning permissions. This linkage is a useful interpretive model: where a statute conditions tax treatment on “permitted use” under planning law, practitioners should focus on planning approvals and permitted use categories rather than solely on actual operations.
Finally, the exclusions demonstrate the careful boundary-setting between different statutory regimes. By excluding properties where payment in lieu of tax is made, and by excluding rent-controlled premises, the Order avoids overlapping relief and preserves the integrity of other legislative frameworks. For lawyers, this means that advising on remission is not only a question of confirming non-residential planning permission; it also requires checking whether the property’s tax assessment basis and tenancy/rent status place it within an exclusion.
Related Legislation
- Property Tax Act (Cap. 254) — in particular section 6(5B) (power to make the Order) and section 6(7) (payment in lieu of tax), as well as section 2(3)(b) and section 2(5) (vacant land and excess land deeming rules).
- Planning Act (Cap. 232) — provides the framework for permitted uses and planning permissions that trigger the remission.
- Control of Rent Act (Cap. 58) — relevant to exclusions for standard rent and for premises exempted under section 30.
Source Documents
This article provides an overview of the Property Tax (Non-Residential Buildings) (Remission) Order 1998 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.