Property Tax Rebate for Non-Residential Properties in 2020

Eligibility Period

Scenario and Type of Property Tax Relief

1 Jan 2020 to 31 Dec 2020

 

As part of the Resilience Budget announced on 26 Mar 2020, qualifying non-residential properties (“qualifying properties”) will be granted property tax rebate for the period of 1 Jan 2020 to 31 Dec 2020. This is an enhancement of the property tax rebate announced at Budget 2020, on 18 Feb 2020. The property tax rebate is enhanced by extending the rebate to additional types of properties, and increasing the amount of rebate for certain types of properties.

 

Under the Resilience Budget, owners of qualifying properties will be granted rebates of up to 100% on their property tax payable. For most properties that are eligible for 100% property tax rebate, this is equivalent to slightly more than one month’s rental.

 

Owners of qualifying properties are required to unconditionally and fully pass on to their tenant(s) the rebate for the property tax account that is attributable to the rented property, by either reducing or offsetting current or future rentals or through a payment to their tenant(s), within the prescribed timeframe.

 

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 the 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 October 2020.

 

The rebate is 100% of the property tax payable for:

  1. Hotel room or function room of a hotel registered under the Hotels Act (“registered hotel”);

  2. Serviced apartment or serviced apartment function room;

  3. Premises of prescribed Meetings, Incentive Travel, Conventions and Exhibitions (MICE) venues, namely Suntec Singapore Convention and Exhibition Centre, Singapore EXPO, and Changi Exhibition Centre;

  4. Premises of an international airport i.e. Singapore Changi Airport;

  5. Premises of a prescribed international cruise or regional ferry terminal. The prescribed cruise and ferry terminals are Singapore Cruise Centre, Marina Bay Cruise Centre Singapore and Tanah Merah Ferry Terminal;

  6. Shops (e.g. retail) and restaurants, including those within hotels, serviced apartments, the prescribed MICE venues under Item 3 as well as those in office, industrial, residential and mixed-use developments; and

  7. Premises of tourist attractions (e.g. Singapore Zoological Gardens, Singapore Flyer and Haw Par Villa).

 
The rebate is 60% of the property tax payable for:  

  1. Marina Bay Sands; and
  2. Resorts World Sentosa.

The above 100% property tax rebate does not apply to them.

 

The rebate is 30% for any premises excluding the following: 

  1. Premises mentioned above that qualify for the 100% or 60% rebate;

  2. Premises used whether wholly or partly for an excluded purpose;

  3. The part of a carpark in the same building or development as premises mentioned in item 2 that corresponds to those premises; and

  4. Any other premises in the same building or development as premises mentioned in item 2, that are used or intended to be used for or in connection with the operation or enjoyment of those premises. Examples are space for base station and vending machine in a residential condominium.

 

Premises are used for an excluded purpose if they are used or intended to be used: 

  1. For any residential purposes; or

  2. As a facility for the exclusive use of residents of residential premises such as gym, function and meeting space and club lounge, whether with or without their guests.

 

For avoidance of doubt, no rebate shall be given to vacant land or land under redevelopment.

 

Property owners are not required to submit any claims for the rebate. The rebate notices have been issued and posted to property owners in end-April 2020. Property owners can log in to myTax Portal to view their notices.

 

For properties that qualify for 100% rebate, the property tax payable for 2020 will be fully refunded. For property owners who have an ongoing GIRO instalment plan, there will be no GIRO deduction from Apr to Dec 2020. However, if you have tax arrears, the GIRO deduction will resume in Jun 2020.

 

If owners of properties which are granted 60% or 30% rebate have an ongoing instalment plan, with the rebate offsetting the instalment payment, there will be no GIRO deduction for a period ranging from four to seven months starting from May 2020.

 

For information on whether your property qualifies for the rebate and the administrative details, please refer to the e-Tax Guide for Property Tax Rebate for Non-Residential Properties in 2020  (Fourth Edition) (PDF, 800KB). The e-Tax Guide has been updated with the details of the requirement for property owners to pass on the property tax rebate to tenants pursuant to Part 6 of the COVID-19 (Temporary Measures) Act 2020 (No. 14 of 2020). For a quick summary, you can refer to the infographic on Property Tax Rebate for Non-Residential Properties in 2020.

 

Residential Properties (HDB Flats, Condominiums, Landed Housing)

All Owner-Occupied Residential Properties

Eligibility Period

Scenario and Type of Property Tax Relief

Ongoing

If you are an individual or married couple who owns and lives in your residential property, you can enjoy lower property tax rates known as owner-occupier tax rates .

Residential Properties Demolished and Rebuilt

Eligibility Period

Scenario and Type of Property Tax Relief

Ongoing

If you are an individual owner whose house is being demolished and rebuilt for subsequent owner-occupation , you can apply for Bldg Land Remission .

Non-Residential Properties Used for Public Worship or Charitable Purpose

Eligibility Period

Scenario and Type of Property Tax Relief

Ongoing

If the property is owned and used by a registered charity for charitable, public religious worship, or educational purposes, you can apply for S6(6) Building Exemption.

Vacant Land

Land Intended for Owner-Occupied Homes

Eligibility Period

Scenario and Type of Property Tax Relief 

Ongoing

If you are an individual owner who bought a piece of land to construct your house for subsequent owner-occupation, you can apply for Vacant Land Remission .