Statute Details
- Title: Property Tax (Non-Residential Buildings) (Remission) Order 2003
- Act Code: PTA1960-S120-2003
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Property Tax Act (Cap. 254)
- Key Enabling Provision: Section 6(5B) of the Property Tax Act
- Citation: S 120/2003
- Commencement: 1 July 2003
- Expiry/Duration: Remains in operation until 31 December 2003 (both dates inclusive)
- Status (as provided): Current version as at 27 Mar 2026
- Core Provisions: Sections 1–3 and the Schedule (statutory boards)
What Is This Legislation About?
The Property Tax (Non-Residential Buildings) (Remission) Order 2003 is a short-term remission order made under the Property Tax Act. In plain language, it temporarily reduces certain property tax liabilities (and payments in lieu of tax) for non-residential buildings—particularly where the building is permitted to be used for purposes other than human habitation.
The Order is designed to provide targeted tax relief for a defined period (from 1 July 2003 to 31 December 2003). It does so by prescribing how much tax (or payment in lieu of tax) may be remitted, depending on the type of owner/occupier and the annual value of the property.
Importantly, the remission is not universal. The Order contains exclusions that prevent relief in specific situations—such as where a statutory board already receives a payment-in-lieu arrangement, or where annual value is assessed on a “vacant land” basis, or where the property sits on demarcated “excess land” that is separately assessed.
What Are the Key Provisions?
1. Citation and commencement (Section 1)
Section 1 provides the formal name of the Order and sets its operational dates. The Order may be cited as the Property Tax (Non-Residential Buildings) (Remission) Order 2003. It comes into operation on 1 July 2003 and remains in force until 31 December 2003 (inclusive). For practitioners, this means the remission is time-bound: any claim for remission must relate to the relevant tax period(s) within that window.
2. Remission of tax and payments in lieu of tax (Section 2)
Section 2 is the heart of the Order. It provides that, subject to Section 3, there shall be a remission of specified amounts in respect of any building (or part of a building) that is permitted under the Planning Act to be used for any purpose other than human habitation. This ties the remission to land-use planning permissions: the property must fall within the non-residential permitted use framework.
The remission is calculated differently depending on the owner category:
(a) Statutory boards specified in the Schedule
Where the building (or part) is owned and let by a statutory board that is 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 reflects the structure of Singapore’s property tax regime for certain statutory bodies. Instead of paying property tax in the ordinary way, some entities make payments in lieu of tax. The Order therefore extends remission to those payments, but only for the specified statutory boards and only at the 15% level.
(b) All other cases
In any other case (i.e., not falling within the specified statutory board category described above), the remission is the aggregate of:
- 100% of the tax payable on the first $40,000 of the building’s annual value; and
- 15% of the tax payable on the portion of annual value exceeding $40,000.
Practically, this creates a progressive remission threshold: the first $40,000 of annual value is fully remitted (100% remission), while the remainder receives a partial remission (15%).
Key interpretive point: The wording refers to “tax payable” and “annual value.” Therefore, the remission is computed by reference to the tax that would otherwise be payable, after annual value determination under the Property Tax Act framework.
3. Application and exclusions (Section 3)
Section 3 limits when the remission can be claimed. The Order “shall not apply to” four categories of buildings/parts:
- (a) Buildings owned and occupied by a statutory board for which payment in lieu of tax is made under section 6(7) of the Act.
- (b) Buildings owned and let by a statutory board that is not specified in the Schedule, where payment in lieu of tax is made under section 6(7) of the Act.
- (c) 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 Act.
- (d) Buildings on demarcated “excess land” 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.
These exclusions matter because they prevent double-counting or inconsistent valuation bases. For example, if the annual value is already computed on a vacant-land basis (or excess land is separately valued as vacant land), the remission is not intended to apply.
From a practitioner’s perspective, Section 3 requires careful fact-finding:
- Is the owner a statutory board?
- If yes, is it one of the statutory boards listed in the Schedule?
- Is the statutory board owned and occupied (not let) or owned and let?
- Is the annual value assessed as vacant land or excess land?
The Schedule (Statutory Boards)
The Schedule identifies the statutory boards that qualify for the specific 15% remission on payments in lieu of tax. The extract provided indicates the Schedule exists but does not list the entities. In practice, counsel should consult the Schedule in the official publication to confirm which statutory boards are included. This is crucial because Section 2(a) only applies to statutory boards “specified in the Schedule,” and Section 3(b) excludes statutory boards not specified in the Schedule.
How Is This Legislation Structured?
The Order is structured in a compact, three-section format followed by a Schedule:
- Section 1 (Citation and commencement): establishes the name and the effective period (1 July 2003 to 31 December 2003).
- Section 2 (Remission of tax and payments in lieu of tax): sets out the remission mechanism and the calculation method for different owner categories.
- Section 3 (Application of Order): provides exclusions and clarifies when the remission does not apply.
- The Schedule: lists the statutory boards eligible for the 15% remission on payments in lieu of tax.
There are no additional parts or complex procedural provisions in the extract. The Order’s operative effect is therefore largely determined by Sections 2 and 3, with the Schedule controlling the statutory board category.
Who Does This Legislation Apply To?
The remission applies to non-residential buildings (or parts of buildings) that are permitted under the Planning Act for use other than human habitation. This means the relief is linked to permitted land use and zoning/approval status, not merely the building’s actual use at a given time.
In terms of persons/entities, the Order affects:
- Owners who are not within the specified statutory board category (remission computed by the $40,000 annual value threshold formula); and
- Statutory boards specified in the Schedule that own and let the relevant non-residential buildings, where they make payments in lieu of tax under section 6(7) of the Property Tax Act.
However, it does not apply where the statutory board is either (i) the building is owned and occupied by the board (not let), (ii) the board is not listed in the Schedule, or (iii) the annual value is assessed on a vacant-land or excess-land basis as described in Section 3(c) and (d).
Why Is This Legislation Important?
Although the Order is time-limited and relatively narrow, it illustrates how Singapore’s property tax system can be adjusted through subsidiary legislation to achieve policy objectives. For practitioners, its importance lies in the precision of eligibility: remission depends on (1) permitted non-residential use under planning law, (2) the owner category (including whether the owner is a specified statutory board), and (3) the valuation basis (vacant land/excess land exclusions).
From a compliance and advisory standpoint, the Order is most relevant when advising on historical tax positions for the period 1 July 2003 to 31 December 2003, or when reviewing whether a taxpayer or statutory board received (or should have received) the correct remission. It may also be relevant in disputes involving the correct interpretation of “annual value” and the interaction between property tax valuation rules and remission schemes.
Enforcement and administration would typically be handled through the property tax assessment and remission processes under the Property Tax Act framework. The Order itself does not set out procedural steps for claiming remission; instead, it operates as a legal basis for the remission to be applied where the statutory conditions are met. Accordingly, practitioners should focus on documenting the planning permission status, the ownership/letting status, the statutory board classification, and the valuation basis used by the Comptroller of Property Tax.
Related Legislation
- Property Tax Act (Cap. 254) — in particular sections on payments in lieu of tax (including section 6(7)), the remission-making power (section 6(5B)), and valuation rules for vacant land and excess land (including section 2(3)(b) and section 2(5)).
- Planning Act (Cap. 232) — for the requirement that the building’s permitted use (non-human habitation) is “permitted under” the Act.
- Legislation timeline / version history — to confirm the correct version and the relevant effective period for any claim or analysis.
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.