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 Formula / Maker: Minister for Finance
- Responsible Authority (as stated): Ministry of Finance
- Commencement: 1 January 2003
- Expiry / Duration (as stated): Remains in operation until 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 qualifying non-residential buildings
What Is This Legislation About?
The Property Tax (Non-Residential Buildings) (Remission) Order 2002 (“the Order”) is a time-limited tax relief instrument made under the Property Tax Act (Cap. 254). 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 during a defined period in 2003.
The relief is targeted. It applies only to buildings (or parts of buildings) that are permitted to be used under Singapore’s Planning Act for purposes other than human habitation. This means the Order is concerned with non-residential use—such as commercial, industrial, institutional, or other non-habitation purposes—rather than residential occupancy.
Practically, the Order also distinguishes between (i) statutory boards that are specifically listed in the Schedule and (ii) other cases. For listed statutory boards, the remission is expressed as a percentage of the “payment in lieu of tax” that they make under the Property Tax Act. For other owners/occupiers (outside the listed statutory board category), the remission is structured as a partial remission of tax payable based on the annual value bands (first $80,000 and the amount exceeding $80,000).
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) Order 2002. The Order comes into operation on 1 January 2003 and remains in force until 30 June 2003 (inclusive). For practitioners, this is crucial: any claim for remission must relate to the relevant property tax period(s) falling within that window.
Section 2: Remission of tax and payments in lieu of tax is the substantive relief provision. It begins with a threshold requirement: the remission applies “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 or permitted use under the Planning Act framework, not merely to the owner’s intention or actual use in fact.
Section 2 then provides two different remission formulas:
(a) For statutory boards specified in the Schedule: there is remission of 30% of any payment made in lieu of tax under section 6(7) of the Property Tax Act. In other words, if a listed statutory board makes a payment in lieu of tax (rather than paying property tax in the ordinary way), it receives a 30% reduction of that payment during the Order’s effective period.
(b) For all other cases: the remission is expressed as a partial remission of the tax payable, calculated using annual value thresholds. The remission equals the aggregate of:
- 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.
This banding approach is important for computation and for advising clients. It means the relief is not a flat percentage across the whole tax bill. Instead, the first $80,000 of annual value is fully relieved (100% remission), while the portion above $80,000 receives only 30% remission.
Section 3: Application of Order (exclusions) limits the scope. Even if a building is non-residential and permitted under the Planning Act, the Order does not apply in certain situations. Section 3 provides four key exclusions:
(a) 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. This exclusion prevents double counting or inappropriate relief where the statutory board is both the owner and occupier and already operates under the payment-in-lieu regime.
(b) Buildings or parts owned and let by a statutory board (other than a statutory board specified in the Schedule) for which payment in lieu of tax is made under section 6(7) of the Act. This means that only the statutory boards listed in the Schedule benefit under the statutory board remission formula; other statutory boards that are not listed do not get the same remission treatment for property they let.
(c) 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 Property Tax Act. This exclusion targets special annual value assessment scenarios. If the annual value is determined on a “vacant land” basis, the remission is not available under this Order.
(d) Buildings or parts situated or being erected on land that has been demarcated as “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 Order does not apply where the annual value is separately assessed on a vacant-land deeming basis for excess land.
For legal practitioners, these exclusions are often where eligibility disputes arise—particularly in cases involving redevelopment, vacant-land deeming, or excess land assessments. Advising clients requires checking not only the building’s permitted use but also the annual value assessment methodology used by the tax authority.
The Schedule: Statutory Boards is referenced in section 2(a). Although the extract provided does not list the statutory boards, the Schedule is essential: it identifies which statutory boards receive the 30% remission of payments in lieu of tax. In practice, counsel should verify whether the relevant statutory board is indeed listed. If it is not, section 3(b) may bar relief in the “owned and let” scenario.
How Is This Legislation Structured?
The Order is structured in a straightforward way typical of remission orders:
Enacting Formula states that the Minister for Finance makes the Order under powers conferred by section 6(5B) of the Property Tax Act.
Section 1 covers citation and commencement, including the time-limited operation period.
Section 2 sets out the remission mechanism and the calculation formulas, distinguishing between (i) specified statutory boards and (ii) other cases.
Section 3 provides exclusions that prevent the Order from applying in certain ownership/occupation/letting and annual value assessment contexts.
The Schedule lists the statutory boards to which the statutory board remission formula applies.
Who Does This Legislation Apply To?
The Order applies to persons with an interest in qualifying non-residential buildings (or parts of buildings) that are permitted for non-habitation purposes under the Planning Act. Eligibility is therefore linked to the nature of the permitted use and the tax regime applicable to the property.
There are two main categories. First, statutory boards specified in the Schedule receive remission of 30% of payments in lieu of tax under section 6(7) of the Property Tax Act, subject to the exclusions in section 3. Second, other cases receive a remission of property tax based on annual value bands: full remission on the first $80,000 and 30% remission on the excess. However, section 3 excludes certain statutory board scenarios (including owner-occupied and certain letting arrangements) and excludes properties where annual value is assessed as vacant land (including excess land deeming).
Why Is This Legislation Important?
Although the Order is time-limited (1 January 2003 to 30 June 2003), it is legally significant because it demonstrates how Singapore structures targeted property tax relief through subsidiary legislation. For practitioners, the Order is a useful template for understanding how remission orders interact with the Property Tax Act—particularly the distinction between ordinary property tax and “payments in lieu of tax” for statutory boards.
From a compliance and advisory perspective, the Order’s exclusions are as important as its remission formulas. Many property tax disputes are not about whether a building is non-residential, but about whether the annual value assessment method (vacant land deeming or excess land deeming) disqualifies the property, or whether the relevant statutory board is within the Schedule and whether the statutory board is owner-occupier or landlord. Counsel should therefore treat section 3 as a gatekeeping provision.
Finally, the Order’s reliance on permitted use under the Planning Act means that tax outcomes may depend on planning permissions and the legal status of permitted use. Where there is uncertainty about planning classification or permitted use, tax relief may hinge on resolving that planning issue. In practice, this creates a cross-disciplinary workflow between planning/land use counsel and tax counsel.
Related Legislation
- Property Tax Act (Cap. 254) — in particular sections 2 (annual value assessment, including vacant land and excess land deeming), section 6(5B) (power to make remission orders), and section 6(7) (payments in lieu of tax by certain entities)
- Planning Act (Cap. 232) — for the permitted use of buildings 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.