For Property Owners

Property Owner’s Obligation to Pass the Property Tax Rebate on to Tenants

Infographic-Property Tax Rebate 2020 for Non_Residential Properties

Under the COVID-19 (Temporary Measures) (Amendment) Act passed on 5 Jun 2020, to provide relief for Small and Medium Enterprises (SMEs) and Non-Profit Organisations (NPOs) operating in qualifying non-residential properties, owners of such qualifying properties will be granted Government cash grant. These property owners are required to provide rental relief through a waiver of rent for their eligible SME and NPO tenant-occupiers. Please refer to the IRAS’ website on Government cash grant (announced in Fortitude Budget) and Ministry of Law’s website on Rental Relief Framework for more information.

Generally, where the Rental Relief Framework applies, the rental waivers may be offset (partially, or otherwise) against any monetary payments or rental reductions provided, or earlier agreed to, by the landlord and the tenants on or after 1 February 2020, as well as any Property Tax Rebate that owners have passed on or are obliged to pass on to their tenants on or before 31 July 2020 in respect of the property. Please refer to the COVID-19 (Temporary Measures) (Rental and Related Measures) Regulations 2020 for details.

Conversely, where a property owner has satisfied its obligation to provide rental waivers under the Rental Relief Framework, the net amount of rental waiver that has been provided by the property owner under the Rental Relief Framework will also go towards satisfying the property owner’s obligation to pass on the property tax rebate. Please note that this information does not have the force of law and is subject to the relevant subsidiary legislation on Rental Relief Framework and the passing on of the Property Tax Rebate. The amendments to the COVID-19 (Temporary Measures) (Transfer of Benefit of Property Tax Remission) Regulations 2020 are expected to be finalised in August 2020.

Click here to download the infographic on Property Tax Rebate for Non-Residential Properties in 2020 (PDF, 599KB)

Click here to download the e-Tax Guide for Property Tax Rebate for Non-Residential Properties (Fourth Edition) (PDF, 800KB)

Click here for the income tax treatment for Passing on of Property Rebate Benefit or Provision of Additional Support to Tenants