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), specifically section 6(5B)
- Enacting Minister: Minister for Finance (made by Permanent Secretary, Ministry of Finance)
- Date Made: 8 March 2003
- Commencement: 1 July 2003
- Expiry/Duration: Remains in operation until 31 December 2003 (both dates inclusive)
- Key Provisions: Sections 1–3 and the Schedule (Statutory Boards)
- Status (as provided): Current version as at 27 Mar 2026
What Is This Legislation About?
The Property Tax (Non-Residential Buildings) (Remission) Order 2003 is a short-term tax remission instrument issued under the Property Tax Act. In plain terms, it temporarily reduces certain property tax burdens (or payments in lieu of tax) for qualifying non-residential buildings—particularly where the building is permitted for use other than human habitation under the Planning Act.
The Order operates as a targeted relief measure. It does not create a new tax; instead, it remits specified portions of the amounts that would otherwise be payable. The remission is structured differently depending on whether the building is owned and let by a statutory board listed in the Schedule, or whether it is “any other case”.
Because the Order is time-limited (1 July 2003 to 31 December 2003), it is best understood as a transitional or policy-driven relief for that period. Practitioners should therefore focus on (i) the eligibility conditions, (ii) the remission formula, and (iii) the exclusions that prevent relief in certain common scenarios.
What Are the Key Provisions?
Section 1 (Citation and commencement) provides the legal identity and timing of the Order. It may be cited as the Property Tax (Non-Residential Buildings) (Remission) Order 2003. The remission regime begins on 1 July 2003 and continues until 31 December 2003 (inclusive). This matters for practitioners because remission is typically applied by reference to the relevant tax period and the dates during which the Order is in force.
Section 2 (Remission of tax and payments in lieu of tax) sets out the substantive relief. The remission applies to 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 building must fall within the non-residential planning use category. The Order then distinguishes between two categories of owners/lessors.
First, under section 2(a), where the building (or part) is owned and let by a statutory board specified in the Schedule, there is a remission of 15% of any payment made in lieu of tax under section 6(7) of the Property Tax Act. This is a remission of the “payments in lieu of tax” regime applicable to certain statutory boards, rather than a remission of ordinary property tax.
Second, under section 2(b), in any other case, the remission is calculated as an aggregate reduction of the tax payable. Specifically, the remission equals: 100% of the tax payable on the first $40,000 of the annual value, plus 15% of the tax payable on the annual value exceeding $40,000. This is a tiered remission formula. Practically, it means that the first tranche of annual value receives full relief, while the portion above $40,000 receives partial relief at a 15% rate.
Section 3 (Application of Order) contains important exclusions. The Order does not apply to certain buildings even if they are non-residential. The exclusions are designed to prevent overlapping relief or to address special valuation circumstances. In particular, the Order does not apply to:
(a) Buildings owned and occupied by a statutory board for which payment in lieu of tax is made under section 6(7) of the Property Tax Act. This exclusion prevents remission where the statutory board is not merely letting the property but is also occupying it.
(b) Buildings owned and let by a statutory board not specified in the Schedule where payment in lieu of tax is made under section 6(7). This is a key limitation: only statutory boards listed in the Schedule qualify for the section 2(a) remission. If a statutory board is not in the Schedule, the Order does not extend relief.
(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 Property Tax Act. This exclusion targets valuation methodology. If the property is treated as vacant land for annual value purposes, the remission is not available.
(d) Buildings situated or being erected on demarcated “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 deeming/valuation approach for excess land.
For practitioners, these exclusions are often where remission claims fail. They require careful review of (i) the ownership/letting/occupation facts, (ii) whether the owner is a Schedule statutory board, and (iii) the valuation basis used by the tax authority (including whether the annual value was computed by deeming the land to be vacant).
How Is This Legislation Structured?
The Order is structured in a compact format typical of subsidiary legislation. It contains:
Enacting Formula referencing the Minister’s power under section 6(5B) of the Property Tax Act.
Section 1 (Citation and commencement) sets the legal name and the operative period.
Section 2 (Remission of tax and payments in lieu of tax) provides the remission mechanism and the two-tier calculation depending on the owner category.
Section 3 (Application of Order) provides exclusions and clarifies when the remission does not apply.
The Schedule lists the statutory boards that qualify for the specific 15% remission of payments in lieu of tax under section 2(a). The Schedule is therefore central for statutory board owners/lessors seeking to determine eligibility.
Who Does This Legislation Apply To?
The Order applies to owners/lessors of qualifying non-residential buildings (or parts of buildings) that are permitted under the Planning Act for use other than human habitation. It also applies to the relevant tax/payment regime—either ordinary property tax or payments in lieu of tax—depending on the owner’s status.
In particular, the Order affects:
(i) Statutory boards specified in the Schedule that own and let qualifying non-residential buildings: they receive a remission of 15% of payments in lieu of tax under section 6(7) of the Property Tax Act.
(ii) All other cases (i.e., not within the Schedule statutory board category): they receive a remission calculated by the tiered annual value formula (100% on the first $40,000, and 15% on the excess).
However, the Order does not apply where the statutory board is occupying the property (section 3(a)), where the statutory board is not listed in the Schedule (section 3(b)), or where the annual value is determined by deeming the land to be vacant land (sections 3(c) and 3(d)).
Why Is This Legislation Important?
Although the Order is time-limited, it is legally significant because it demonstrates how Singapore’s property tax system can be adjusted through targeted remission orders. For practitioners advising property owners, statutory boards, or tenants negotiating cost allocations, the Order provides a concrete remission formula and clear eligibility boundaries.
From a compliance and dispute-prevention perspective, the exclusions in section 3 are particularly important. Remission is not automatic. A practitioner should expect that any claim for remission will require evidence of:
(a) the building’s permitted planning use (non-residential, not human habitation);
(b) the ownership and letting/occupation facts (especially for statutory boards);
(c) whether the statutory board is listed in the Schedule; and
(d) the valuation basis used under the Property Tax Act (including whether the annual value is assessed as vacant land or as excess land deemed vacant).
In practice, these factors often determine whether remission is granted. For example, a statutory board that occupies rather than lets the property will fall outside section 3(a), even if the building is non-residential. Similarly, properties on land treated as vacant (or excess land deemed vacant) will not qualify, regardless of the building’s actual use.
Finally, the Order’s short duration underscores the need for practitioners to check the relevant tax period. If advising on historical tax computations (e.g., for audits, adjustments, or litigation), the commencement and end dates (1 July 2003 to 31 December 2003) may be decisive in determining whether the remission regime applies.
Related Legislation
- Property Tax Act (Cap. 254) — particularly 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) (valuation deeming provisions relevant to vacant land and excess land).
- Planning Act (Cap. 232) — for determining whether the building is permitted for use other than human habitation.
- Legislation Timeline — to confirm the correct version and operative 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.