Statute Details
- Title: Property Tax (Non-Residential Buildings) (Remission) Order 2009
- Act Code: PTA1960-S386-2009
- Type: Subsidiary Legislation (SL)
- Authorising Act: Property Tax Act (Cap. 254), specifically section 6(8)
- Enacting Formula (key power): Made by the Minister for Finance under section 6(8) of the Property Tax Act
- Commencement: Deemed to have come into operation on 1 January 2009
- Key Provisions: Sections/Articles 1–4 and the Schedule (Statutory Boards)
- Remission Period Covered: 1 January 2009 to 31 December 2009 (both dates inclusive)
- Status: Current version as at 27 March 2026 (per the legislation portal)
What Is This Legislation About?
The Property Tax (Non-Residential Buildings) (Remission) Order 2009 (“the Order”) is a targeted tax relief instrument under Singapore’s Property Tax regime. In plain terms, it provides a remission (partial reduction) of property tax for certain non-residential buildings or parts of buildings during the year 2009.
The Order operates by linking remission to the Planning Act classification of permitted use. It applies where a building (or part of a building) is permitted under the Planning Act for purposes other than residential or human habitation. This means the relief is not about the physical characteristics of the property alone, but about the permitted use under planning law.
Practically, the Order also distinguishes between (i) buildings owned and let by certain statutory boards listed in the Schedule and (ii) other owners. For statutory boards in the Schedule, the remission is expressed as a percentage of payments in lieu of tax; for other owners, it is expressed as a percentage of the tax payable. The Order further provides for refunds where tax has already been paid, and it sets out important exclusions to prevent overlap with other valuation and payment-in-lieu arrangements.
What Are the Key Provisions?
1. Citation and commencement (Article 1)
The Order may be cited as the Property Tax (Non-Residential Buildings) (Remission) Order 2009. It is deemed to have come into operation on 1 January 2009. This “deemed commencement” is legally significant: it means the remission is intended to apply for the whole of the 2009 calendar year, even though the Order was made later (the making date is shown as 24 August 2009).
2. Remission of tax and payments in lieu of tax (Article 2)
Article 2 is the core operative provision. It provides that, subject to the Order, where any building or part thereof is permitted under the Planning Act to be used for any purpose other than residential or human habitation, tax is remitted in the following manner for the period 1 January 2009 to 31 December 2009:
- Statutory boards in the Schedule (Article 2(a)): For buildings/parts owned and let by a statutory board specified in the Schedule, 40% of any payment made in lieu of tax under section 6(11) of the Property Tax Act is remitted.
- All other cases (Article 2(b)): In any other case, 40% of the tax payable for the period is remitted.
From a practitioner’s perspective, the key interpretive steps are:
- Confirm permitted use under the Planning Act: the relief hinges on permitted use being non-residential/non-habitation.
- Identify whether the owner is a “statutory board” in the Schedule: if yes, the mechanism is payment-in-lieu remission; if no, it is tax remission.
- Apply the 40% rate consistently across the specified 2009 period.
3. Refund of tax paid (Article 3)
Article 3 addresses situations where tax has already been paid. It provides that the refund of any tax arising out of the remission allowed under paragraph 2 shall be made to the person who is the owner of the building (or part) at the time of the refund.
This is an important commercial and legal detail. Property tax is often paid by the owner, but ownership may change during the year. The Order’s rule is not “owner at the time the tax was paid”; it is owner at the time the refund is processed. Lawyers advising on conveyancing, corporate restructuring, or sale-and-purchase completion mechanics should note this potential mismatch and consider whether contractual arrangements should address refund entitlements.
4. Application and exclusions (Article 4)
Article 4 sets out circumstances where the Order does not apply. These exclusions are designed to avoid relief where payment-in-lieu arrangements or valuation methodologies already treat the property differently.
- Exclusion (a): Buildings/parts owned and occupied by any statutory board for which payment in lieu of tax is made under section 6(11) of the Property Tax Act.
- Exclusion (b): Buildings/parts owned and let by a statutory board not specified in the Schedule but for which payment in lieu of tax is made under section 6(11).
- Exclusion (c): Buildings/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.
- Exclusion (d): Buildings/parts situated or being erected on that part of land demarcated as excess land under section 2(5) of the Property Tax Act, where annual value has been separately assessed.
For practitioners, these exclusions require careful factual and valuation analysis:
- Determine whether the property is subject to payment in lieu of tax and whether the statutory board is within the Schedule.
- Check whether the annual value is computed on a basis that treats the land as vacant or separately assesses excess land. If so, the remission is unavailable.
Schedule: Statutory Boards
The Schedule identifies the statutory boards that qualify for the specific remission mechanism in Article 2(a). While the extract provided does not list the names, the Schedule is legally crucial: it determines whether the remission is calculated as a percentage of payments in lieu of tax for those boards, rather than as a percentage of “tax payable” for other owners.
How Is This Legislation Structured?
The Order is structured in a straightforward manner typical of subsidiary tax instruments:
- Enacting Formula: states the Minister for Finance’s authority under section 6(8) of the Property Tax Act.
- Article 1 (Citation and commencement): provides the name and effective date (deemed 1 January 2009).
- Article 2 (Remission of tax and payments in lieu of tax): sets out the scope (non-residential/non-habitation permitted use under the Planning Act) and the remission rate (40%) with different computation bases for Schedule statutory boards versus other owners.
- Article 3 (Refund of tax paid): provides the refund recipient rule (owner at the time of refund).
- Article 4 (Application of Order): lists exclusions.
- The Schedule: lists the statutory boards specified for the Article 2(a) remission calculation.
Notably, the Order is time-bound in effect: it is tied to the 2009 calendar year (1 January 2009 to 31 December 2009). Even though the portal shows a “current version” status, the substantive remission is for that defined period.
Who Does This Legislation Apply To?
The Order applies to owners of buildings or parts of buildings that meet the Planning Act permitted-use criterion: the building/part must be permitted for purposes other than residential or human habitation. The relief is therefore not limited by property type (e.g., office, industrial, commercial) in the text itself; rather, it is limited by permitted use under planning law.
It also applies differently depending on whether the owner is a statutory board and whether that statutory board is specified in the Schedule. For those scheduled statutory boards, the remission is calculated as a percentage of payments in lieu of tax under section 6(11) of the Property Tax Act. For other owners, the remission is calculated as a percentage of the tax payable. However, Article 4 excludes certain categories, including statutory board properties that are owned and occupied by the board (for which payment in lieu is made), and properties whose annual value is assessed as vacant land or as excess land with separate annual value assessments.
Why Is This Legislation Important?
This Order is important because it demonstrates how Singapore’s property tax relief can be implemented through subsidiary legislation that precisely targets a policy objective—here, providing a 40% remission for non-residential/non-habitation properties for a defined period in 2009.
For legal practitioners, the Order’s practical value lies in its mechanics and boundaries. The remission is not automatic for all non-residential properties; it depends on (i) permitted use under the Planning Act, (ii) whether the owner is a scheduled statutory board, and (iii) whether the property falls within the exclusions relating to payment-in-lieu arrangements and valuation methodologies (vacant land and excess land assessments).
In addition, Article 3’s refund rule—payable to the owner at the time of refund—can affect transactions and disputes. For example, where a property is sold after tax has been paid but before remission/refund is processed, the entitlement may not align with the contractual allocation of tax liabilities. Lawyers should consider incorporating provisions in sale agreements or internal corporate arrangements to address remission/refund outcomes.
Related Legislation
- Property Tax Act (Cap. 254) — in particular:
- Section 6(8) (power to make remission orders)
- Section 6(11) (payments in lieu of tax)
- Section 2(3)(b) (annual value assessed as if vacant land)
- Section 2(5) (demarcation of excess land and separate annual value assessment)
- Planning Act (Cap. 232) — permitted use framework used to determine whether the building/part qualifies as non-residential/non-habitation
Source Documents
This article provides an overview of the Property Tax (Non-Residential Buildings) (Remission) Order 2009 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.