Statute Details
- Title: Property Tax (Non-Residential Buildings) (Remission) Order 2002
- Act Code: PTA1960-S683-2002
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Property Tax Act (Cap. 254), specifically section 6(5B)
- Enacting Authority: Minister for Finance
- Citation: “Property Tax (Non-Residential Buildings) (Remission) Order 2002”
- Commencement: 1 January 2003
- Expiry (as originally made): 30 June 2003 (both dates inclusive)
- Key Provisions: Sections 1–3 and the Schedule (Statutory Boards)
- Subject Matter: Remission of property tax and payments in lieu of tax for non-residential buildings permitted under the Planning Act for non-human habitation uses
- Current Version Note: The extract indicates “Current version as at 27 Mar 2026”, with the timeline showing SL 683/2002 and an operational window of 1 Jan 2003 to 30 Jun 2003
What Is This Legislation About?
The Property Tax (Non-Residential Buildings) (Remission) Order 2002 is a targeted tax relief instrument issued under the Property Tax Act. In plain terms, it provides a remission (i.e., a reduction) of property tax and certain “payments in lieu of tax” for qualifying non-residential buildings—specifically, buildings or parts of buildings that are permitted to be used under Singapore’s Planning Act for purposes other than human habitation.
The Order is not a general property tax regime. Instead, it operates as a temporary relief measure. It sets out (i) who can benefit, (ii) how the remission is calculated, and (iii) important exclusions. It also distinguishes between buildings owned and let by certain statutory boards (listed in the Schedule) and other owners/lessors.
From a practitioner’s perspective, the Order matters because it can directly affect the quantum of tax payable or the amount of payment in lieu of tax required under the Property Tax Act framework. It also interacts with how annual value is assessed—particularly where land is treated as vacant land for property tax purposes, or where land has been demarcated as “excess land” and assessed separately.
What Are the Key Provisions?
Section 1: Citation and commencement establishes the legal identity and timing of the relief. The Order may be cited as the Property Tax (Non-Residential Buildings) (Remission) Order 2002. It comes into operation on 1 January 2003 and remains in operation until 30 June 2003 (both dates inclusive). This is crucial for advising clients: the remission is time-bound, and practitioners should verify whether any relevant tax assessment period falls within the operational window.
Section 2: Remission of tax and payments in lieu of tax is the core relief provision. It applies “subject to paragraph 3” (the exclusions). The remission is granted “in respect of any building or part thereof” that is permitted to be used under the Planning Act for any purpose other than for human habitation. This ties eligibility to planning permission and the intended use category, not merely to the physical characteristics of the building.
The remission calculation differs depending on the ownership/letting arrangement:
- Statutory boards listed in the Schedule: For buildings (or parts) that are 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 cases: For “any other case”, the remission is computed as an effective reduction of the tax payable based on annual value:
- 100% of the tax payable on the first $80,000 of the annual value; and
- 30% of the tax payable on the annual value exceeding $80,000.
Practically, this creates a stepped relief structure: the first $80,000 of annual value is fully remitted (i.e., no tax on that portion), while the portion above $80,000 receives a 30% remission. For clients, the key work is to map the property’s annual value to this threshold and then apply the correct remission formula based on whether the owner/lessor is a scheduled statutory board.
Section 3: Application of Order (exclusions) sets out four categories where the Order does not apply. These exclusions are particularly important because they can defeat otherwise eligible planning-use arguments. The Order does not apply to:
- (a) Any building or part thereof owned and occupied by any statutory board for which payment in lieu of tax is made under section 6(7) of the Act.
- (b) Any building or part thereof owned and let by any statutory board other than a statutory board specified in the Schedule, where payment in lieu of tax is made under section 6(7).
- (c) Any building or part thereof situated or being erected on any land where the annual value of that property has been assessed as if it were vacant land under section 2(3)(b) of the Act.
- (d) Any building or part thereof situated or being erected on that part of any land which has been demarcated as excess land under section 2(5) of the Act, and where the annual value has been separately assessed by deeming that part of the land as vacant land.
These exclusions reflect a policy choice: the remission is designed for certain non-residential uses and certain tax bases, but it is withheld where the property tax computation is anchored to “vacant land” deeming provisions or where the statutory board arrangement falls outside the Schedule or the relevant “owned and let” scenario.
Schedule: Statutory Boards (as referenced in section 2) identifies which statutory boards qualify for the 30% remission of payments in lieu of tax. While the extract does not list the boards, the Schedule is legally significant: if a statutory board is not listed, section 2(b) and section 3(b) can prevent the Order from applying to its properties (where payment in lieu of tax is made under section 6(7)). For legal practice, confirming the correct statutory board against the Schedule is often the decisive step.
How Is This Legislation Structured?
The Order is structured in a straightforward format typical of Singapore subsidiary legislation:
- Section 1 (Citation and commencement): identifies the instrument and sets the operational period.
- Section 2 (Remission of tax and payments in lieu of tax): provides the substantive relief and the calculation methodology, including the distinction between scheduled statutory boards and other cases.
- Section 3 (Application of Order): provides exclusions that limit eligibility and prevent the remission from applying in specified circumstances.
- The Schedule: lists the statutory boards that receive the specific remission treatment under section 2(a).
There are no “Parts” in the extract, and the operative content is concentrated in the three sections plus the Schedule. For practitioners, this means the analysis is largely a checklist exercise: confirm planning-permitted non-habitation use, confirm whether the owner/lessor is a scheduled statutory board, confirm the annual value basis, and then apply the exclusions.
Who Does This Legislation Apply To?
The Order applies to buildings or parts of buildings that are permitted under the Planning Act for purposes other than human habitation. The relief is relevant to parties who bear property tax or who make payments in lieu of tax under the Property Tax Act framework.
In terms of persons, the Order’s practical beneficiaries fall into two broad groups:
- Scheduled statutory boards (listed in the Schedule) that own and let qualifying non-residential buildings: they receive a 30% remission of payments in lieu of tax under section 6(7).
- Other cases (non-scheduled statutory boards or non-statutory-board owners/lessors): they receive remission calculated by the annual value threshold method (100% remission on the first $80,000 of annual value and 30% remission on the excess).
However, the Order does not apply where the property falls within the exclusions—particularly where the annual value is assessed as vacant land under the Property Tax Act’s deeming provisions, or where the statutory board’s role/arrangement does not match the Schedule and the relevant section 6(7) payment-in-lieu context.
Why Is This Legislation Important?
This Order is important because it provides a legally defined mechanism for reducing property tax exposure (or payments in lieu of tax) for a specific category of non-residential buildings. For practitioners advising property owners, statutory boards, or tenants who may be indirectly affected through rental arrangements, the remission can materially change the cost base during the relevant period.
From an enforcement and compliance standpoint, the Order’s exclusions highlight that eligibility is not automatic. Even if a building is used for non-habitation purposes, the remission may be denied if the annual value is computed under special deeming rules (vacant land or excess land treated as vacant land). This means practitioners should not rely solely on the building’s use; they must also examine the valuation basis and the statutory board classification.
Finally, because the Order’s commencement and end dates are explicit, it is essential for legal and tax teams to confirm whether the remission is being claimed for assessments covering the operational window (1 January 2003 to 30 June 2003). Where claims are made outside that window, the statutory basis may be absent. In disputes, the time-bound nature of the instrument can be a decisive argument.
Related Legislation
- Property Tax Act (Cap. 254): In particular, section 6(5B) (power to make remission orders), section 6(7) (payments in lieu of tax), and section 2(3)(b) and section 2(5) (vacant land and excess land deeming/valuation rules).
- Planning Act (Cap. 232): Provides the framework for permitted uses and planning permissions that determine whether a building is permitted for purposes other than human habitation.
Source Documents
This article provides an overview of the Property Tax (Non-Residential Buildings) (Remission) Order 2002 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.