Statute Details
- Title: Property Tax (Non-Residential Buildings) (Remission) Order 2003
- Act Code: PTA1960-S120-2003
- Type: Subsidiary Legislation (SL)
- Authorising Act: Property Tax Act (Cap. 254), in particular section 6(5B)
- Legislative Instrument No.: S 120/2003
- Citation: Property Tax (Non-Residential Buildings) (Remission) Order 2003
- Commencement: 1 July 2003
- Duration: Remained in operation until 31 December 2003 (both dates inclusive)
- Status (as provided): Current version as at 27 Mar 2026 (with the 2003 Order still accessible in the legislation database)
- Key Provisions: Sections/paragraphs 1 (citation and commencement), 2 (remission of tax and payments in lieu of tax), 3 (application/exclusions), and the Schedule (statutory boards covered)
What Is This Legislation About?
The Property Tax (Non-Residential Buildings) (Remission) Order 2003 is a targeted tax relief instrument made under the Property Tax Act. In plain terms, it provides a temporary remission (partial reduction) of property tax and certain “payments in lieu of tax” for qualifying non-residential buildings—specifically where the building is permitted under the Planning Act for uses other than human habitation.
The Order matters because Singapore’s property tax system distinguishes between (i) property tax payable by owners and (ii) “payments in lieu of tax” (PILOT) made by certain statutory bodies. The remission in this Order applies to both categories, but with different remission formulas depending on whether the relevant building is owned and let by a statutory board specified in the Schedule.
Although the Order is time-limited (in operation from 1 July 2003 to 31 December 2003), it illustrates how the Government can use subsidiary legislation to deliver short-term fiscal relief to encourage or support particular land-use outcomes, while also carving out situations where remission is not intended to apply.
What Are the Key Provisions?
1. Citation and commencement (paragraph 1)
Paragraph 1 sets the legal identity and timing. The Order may be cited as the Property Tax (Non-Residential Buildings) (Remission) Order 2003. It came into operation on 1 July 2003 and remained in operation until 31 December 2003. For practitioners, this is critical: remission eligibility is tied to the period of operation, and any claim must be assessed against the relevant property tax assessment period and whether the remission was intended to cover that period.
2. Remission of tax and payments in lieu of tax (paragraph 2)
Paragraph 2 is the core relief provision. It begins with a qualification condition: the remission applies “in respect of any building or part thereof” that is permitted under the Planning Act to be used for any purpose other than human habitation. In other words, the relief is not based solely on the physical characteristics of the building; it is anchored to the permitted planning use.
The remission then distinguishes between two scenarios:
(a) Buildings owned and let by specified statutory boards
Where the building (or part) is owned and let by a statutory board specified in the Schedule, the remission is 15% of any payment made in lieu of tax under section 6(7) of the Property Tax Act. This means the statutory board’s PILOT is reduced by 15%—a partial remission rather than a full waiver.
(b) All other cases
For “any other case,” the remission applies to property tax payable and is calculated as an aggregate of two components:
- 100% of the tax payable on the first $40,000 of the building’s annual value; and
- 15% of the tax payable on the annual value exceeding $40,000.
This structure effectively provides a more generous remission on the lower band of annual value (a full remission up to $40,000 annual value), and a smaller remission rate (15%) on the portion above that threshold. Practically, this is a progressive remission design: smaller annual value properties receive more relief in relative terms.
3. Application and exclusions (paragraph 3)
Paragraph 3 provides the boundaries of the Order. Even if a building is non-residential and permitted under the Planning Act, remission may still be denied if one of the listed exclusions applies.
The exclusions are particularly important for statutory boards and for properties whose annual value is assessed on a deemed basis.
(a) Statutory board buildings already subject to PILOT
The Order does not apply to any building (or part) owned and occupied by any statutory board for which PILOT is made under section 6(7) of the Property Tax Act. The legislative intent appears to be that remission is not intended to apply to statutory boards that occupy their own premises (as opposed to letting them).
(b) Statutory board buildings not in the Schedule
It also does not apply to any building owned and let by a statutory board other than a statutory board specified in the Schedule, where PILOT is made under section 6(7). This reinforces that the remission for PILOT is limited to the Schedule-listed statutory boards.
(c) Buildings assessed as if vacant land
The Order does not apply to buildings 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 matters because property tax computations can be affected by how annual value is determined—particularly during development or where assessment rules deem the land’s status.
(d) “Excess land” demarcations with separate vacant-land assessment
Finally, the Order does not apply to buildings situated or being erected on that part of any land which 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 exclusion is tied to the annual value assessment mechanism, not merely the building’s use.
Schedule: Statutory Boards
The Schedule identifies the statutory boards that receive the specific remission treatment for PILOT (15% remission of payments in lieu of tax). While the extract provided does not list the Schedule entries, the Schedule is legally decisive: if a statutory board is not listed, the remission under paragraph 2(b) for PILOT does not apply, and paragraph 3(b) may exclude the property entirely where PILOT is made.
How Is This Legislation Structured?
The Order is structured in a straightforward format typical of subsidiary legislation:
- Enacting Formula: States that the Minister for Finance makes the Order under the powers conferred by section 6(5B) of the Property Tax Act.
- Paragraph 1 (Citation and commencement): Provides the short title and the operational dates.
- Paragraph 2 (Remission of tax and payments in lieu of tax): Sets out the remission conditions and the calculation methodology, including the statutory-board-specific rule and the general tax remission bands.
- Paragraph 3 (Application of Order): Lists exclusions that limit where remission is available.
- The Schedule: Lists statutory boards covered by the PILOT remission rule.
For practitioners, the key is that the Order’s operative effect is entirely contained in paragraphs 2 and 3, with the Schedule determining the scope of the statutory-board category.
Who Does This Legislation Apply To?
The Order applies to buildings or parts of buildings that are permitted under the Planning Act for uses other than human habitation. This means the relief is relevant to owners, occupiers, and—where applicable—statutory boards that are subject to the property tax regime through PILOT.
In terms of persons, the remission operates in two tracks:
- Property tax payers (the “other cases” category) receive remission based on the annual value banding (100% up to $40,000; 15% on the excess).
- Statutory boards specified in the Schedule receive remission of 15% of PILOT for buildings that they own and let.
However, paragraph 3 narrows applicability. Buildings owned and occupied by statutory boards for which PILOT is made are excluded, and statutory boards not listed in the Schedule are excluded from the PILOT remission framework. Additionally, properties assessed as vacant land (including demarcated “excess land” assessed as vacant land) are excluded regardless of their permitted use.
Why Is This Legislation Important?
This Order is important for practitioners because it demonstrates how remission can be structured to align with planning permissions and annual value assessment rules. The relief is not automatic merely because a building is “non-residential” in common parlance; it is tied to whether the building is permitted under the Planning Act for non-habitation purposes. That linkage can be decisive in disputes about whether a property qualifies.
Second, the Order is a useful example of how Singapore’s property tax system treats statutory boards differently. The distinction between “owned and let” versus “owned and occupied” is legally meaningful. A statutory board that occupies its own premises for which PILOT is made is outside the remission, while a Schedule-listed statutory board that lets its premises may receive a partial remission of PILOT.
Third, the exclusions based on annual value deeming provisions (vacant land and excess land) highlight a recurring theme in property tax practice: assessment methodology can override intended policy outcomes. Even if the building’s permitted use is non-residential, remission may be denied if the annual value is computed under deeming rules that treat the land as vacant.
Finally, because the Order was time-limited to the second half of 2003, it is particularly relevant in historical assessment periods, rectification matters, or disputes involving assessments made for that timeframe. Lawyers handling legacy property tax issues should verify the applicable remission instrument and its operational dates.
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) (annual value deeming rules for vacant land and excess land).
- Planning Act (Cap. 232) — for the requirement that the building’s use be “permitted” for purposes other than human habitation.
- Legislation timeline / versioning materials — to confirm the correct version and operational period of the Order.
Source Documents
This article provides an overview of the Property Tax (Non-Residential Buildings) (Remission) Order 2003 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.