BSL Bulletin

As part of the COVID-19 relief measures, the Minister for Finance has announced, in the FY2020 Budget and FY2020 Supplementary Budget, a property tax rebate of up to 100% of non-residential properties for the tax payable in 2020. The rebate is intended to help businesses deal with the
impact from COVID-19.

RATE OF PROPERTY TAX REBATE
Property tax rebate will be granted on qualifying properties for the period of 1 Jan 2020 to 31 Dec 2020 at the rate of 30%, 60% or 100% depending on the type of qualifying properties.

NOTIFICATION OF PROPERTY TAX REBATE
Property owners are not required to submit any claims for the property tax rebate. The rebate notices were issued and posted to the owners of the qualifying properties in end-April 2020. If property owners did not receive any notice of the rebate by 31 May 2020 even though their property falls under the qualifying properties, they should contact the Property Tax Division of the Inland Revenue Authority of Singapore.

TRANSFER OF PROPERTY TAX REBATE TO TENANT(S)
Owners of qualifying properties are required to unconditionally and fully pass on to their tenant(s) the property tax rebate that is attributable to the rented property based on the period it was
rented out. The pass on may be done by either reducing or offsetting current or future rentals or through a payment to their tenants within the prescribed timeframe.

The property owner is only required by law to pass on the rebate to his own tenant who is
defined as a prescribed lessee or licensee.

A prescribed lessee is defined as a person who has a lease agreement with the owner for the
whole or any part of the property:

(a) At any time in the period between 3 April 2020 and 31 December 2020 (both dates
inclusive); and

(b) For a purpose other than accommodation at the property.

As for a prescribed licensee, it is defined as a person who has a licence agreement with the
owner for the whole or any part of the property:

(a) For an initial period of at least 12 months (excluding any period of extension, or renewal
that may be provided under the licence), part of which falls in the period between 3 April
2020 and 31 December 2020 (both dates inclusive); and

(b) For a purpose other than accommodation at the property.

PRESCRIBED AMOUNT OF PROPERTY TAX REBATE TRANSFER
Owners of qualifying properties are required to pass on a prescribed amount of property tax
rebate to tenant(s). This prescribed amount is computed based on various factors, such as
whether the property is rented out to a single tenant or multiple tenant(s), whether any tenant
ended the tenancy before 3 April 2020, etc.

PENALTIES
Failure to properly pass on the property tax rebate, or to keep the records (e.g. information
on the amount, manner and time of pass on) until 31 December 2023, without reasonable
excuse, is an offence. Those guilty of such an offence shall be liable on conviction to a fine
not exceeding $5,000.