Statute Details
- Title: Property Tax (Non-Residential Buildings) (Remission) Order 2009
- Act Code: PTA1960-S386-2009
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Property Tax Act (Cap. 254)
- Power Exercised: Section 6(8) of the Property Tax Act
- Commencement: Deemed to have come into operation on 1 January 2009
- Enacting Instrument Date: Made on 24 August 2009
- Key Provisions: Sections 1–4; Schedule (Statutory Boards)
- Remission Period Covered: 1 January 2009 to 31 December 2009 (both dates inclusive)
- Current Version 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 issued under the Property Tax Act. In plain terms, it provides a remission (partial waiver) of property tax for non-residential buildings—that is, buildings or parts of buildings that are permitted under the Planning Act for uses other than residential or human habitation.
The Order is designed to apply to property tax liabilities for a specific year: the 2009 calendar year. It reduces either (i) the payment in lieu of tax made by certain statutory boards, or (ii) the tax payable by other owners, by a fixed percentage of 40% for the relevant period.
Although the remission is expressed as a percentage reduction, the legal effect is not merely administrative. It directly affects the computation and settlement of property tax (or payments in lieu of tax) for qualifying non-residential premises, and it also creates a framework for refunds where tax has already been paid.
What Are the Key Provisions?
Section 1 (Citation and commencement) establishes the formal identity of the Order and its effective date. The Order may be cited as the Property Tax (Non-Residential Buildings) (Remission) Order 2009 and is deemed to have come into operation on 1 January 2009. This “deemed” commencement is important for practitioners because it confirms that the remission applies to the 2009 period even though the instrument was made later in August 2009.
Section 2 (Remission of tax and payments in lieu of tax) contains the core substantive relief. It sets out the conditions and the remission rate. The remission applies where a building (or part thereof) is permitted under the Planning Act to be used for any purpose other than residential or human habitation. In other words, the relief is tied to the permitted use under planning law, not merely the actual use at a given moment (though actual use may be relevant evidence of permitted use).
Section 2 then distinguishes between two categories of payment mechanisms:
(a) Statutory boards specified in the Schedule: For buildings owned and let by such statutory boards, the remission is 40% of any payment made in lieu of tax under section 6(11) of the Property Tax Act for the period 1 January 2009 to 31 December 2009.
(b) All other cases: For any other qualifying building or part thereof, the remission is 40% of the tax payable for the same 2009 period.
From a legal practice perspective, the distinction matters because “payment in lieu of tax” is a different legal and accounting concept from “tax payable.” The Order ensures that the remission is applied consistently across both regimes, but through different computational bases depending on ownership and the statutory board status.
Section 3 (Refund of tax paid) addresses the scenario where tax has already been paid and later qualifies for remission. 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 thereof) at the time of the refund.
This “owner at the time of refund” rule is a practical and potentially contentious point in property tax matters. It can affect outcomes in transactions involving transfers of property during the remission/refund period. Practitioners should consider whether the refund should be treated as part of the purchase price adjustment, and whether contractual arrangements (e.g., completion accounts, tax apportionment clauses) should address the risk that the refund may be paid to a different party than the one who bore the original tax cost.
Section 4 (Application of Order) sets out explicit exclusions. Even if a building is non-residential and otherwise appears to qualify, the Order does not apply to certain categories:
(a) Buildings or parts owned and occupied by any statutory board for which payment in lieu of tax is made under section 6(11) of the Act. This exclusion prevents double counting or misalignment where the statutory board is both owner and occupier.
(b) Buildings or parts owned and let by a statutory board not specified in the Schedule, again where payment in lieu of tax is made under section 6(11). This means that only the statutory boards listed in the Schedule receive the remission under the statutory-board limb of section 2(a).
(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 Act. This exclusion is significant because it targets valuation methodology. If the annual value is computed on a “vacant land” basis, the remission is not granted.
(d) Buildings or parts situated or being erected on excess land demarcated under section 2(5) of the Act, where the annual value has been separately assessed. Again, the exclusion is valuation-based: where the annual value is separately assessed for excess land, remission under this Order is not available.
For practitioners, these exclusions are often where eligibility disputes arise. They require careful review of (i) the statutory board’s identity and whether it is listed in the Schedule, (ii) the ownership/occupation/letting structure, and (iii) the valuation basis used by the tax authority.
How Is This Legislation Structured?
The Order is structured in a straightforward manner typical of remission orders:
- Section 1 provides the citation and commencement (deemed effective date).
- Section 2 sets out the remission mechanism, including the 40% remission rate and the two payment bases (tax payable vs payment in lieu of tax), tied to the 2009 period and to non-residential permitted use under the Planning Act.
- Section 3 provides for refunds and specifies the recipient (owner at the time of refund).
- Section 4 lists exclusions where the Order does not apply, including statutory board ownership/occupation/letting scenarios and valuation-based exclusions (vacant land and excess land).
- The Schedule identifies the statutory boards that fall within the remission category for buildings owned and let by them.
Notably, the Order is time-bound in its remission period (the 2009 calendar year) even though it is a “current version” instrument. Practitioners should therefore focus on the temporal scope when advising on eligibility and refund claims.
Who Does This Legislation Apply To?
The Order applies to owners of non-residential buildings (or parts of buildings) that are permitted under the Planning Act for uses other than residential or human habitation. It covers both private owners and certain statutory boards, but the statutory board relief is limited to those specified in the Schedule.
Where the owner is a qualifying statutory board that is listed in the Schedule and the building is owned and let by that statutory board, the remission is applied to the payment in lieu of tax under section 6(11) of the Property Tax Act. In all other qualifying cases, the remission is applied to the tax payable.
However, the Order does not apply to certain statutory board scenarios (e.g., where the statutory board owns and occupies the premises) and does not apply where the annual value is assessed on a vacant land basis or where the premises are on excess land with separately assessed annual value. These exclusions can be decisive in determining whether a property qualifies.
Why Is This Legislation Important?
This Order is important because it provides a clear, quantified remission—40% for the 2009 period—for a defined class of properties. For practitioners, the value lies in the combination of (i) a statutory basis for remission, (ii) a fixed percentage, and (iii) a structured distinction between tax payable and payments in lieu of tax.
From an advisory standpoint, the Order is also useful as a template for how remission instruments are drafted: eligibility is linked to planning-permitted use, computation is linked to the tax/payment regime, and exclusions are linked to valuation methodology and statutory board status. This makes it easier to analyze similar remission orders and to anticipate how the tax authority will interpret eligibility.
Finally, the refund provision in section 3 has practical consequences for property transactions and tax accounting. Because refunds are paid to the owner at the time of refund, parties should consider whether contracts allocate the economic benefit of remission and refunds. Where ownership changes during the relevant period, disputes can arise over who is entitled to the refund and how it should be treated for completion and post-completion adjustments.
Related Legislation
- Property Tax Act (Cap. 254) — in particular section 6 (including section 6(8) and section 6(11)) and section 2 (including provisions on annual value, vacant land, and excess land).
- Planning Act (Cap. 232) — for the permitted use of buildings for purposes other than residential or human habitation.
- Legislation Timeline — for confirming the correct version and effective date of the Order.
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.