Property Tax (Exemption of Land under Development) Order

Property Tax Act

(CHAPTER 254, Section 6(5A))

Property Tax (Exemption of Land under Development) Order¹

¹Replaces O 5, 1990 Ed. (S 281/87).

O 5

G.N. No. S 94/1995

REVISED EDITION 1995

(1st April 1995)

[2nd March 1995]

Citations

1. This Order may be cited as the Property Tax (Exemption of Land under Development) Order.

Definitions

2. In this Order —

“approved building project” means a building project approved by the Minister under paragraph 3;

“CSC” means a certificate of statutory completion in respect of a building issued by the Building Authority under section 20(1) of the Building Control Act [Cap. 29] and where more than one CSC is issued in respect of a building, means the first CSC;

“owner” means the owner of vacant land on which an approved building project is being or is to be constructed;

“TOP” means the temporary occupation permit in respect of a building issued by the Building Authority under section 20(2) of the Building Control Act and where more than one TOP is issued in respect of a building, means the first TOP.

Application

3.—(1) This Order shall only apply to vacant land on which a building project approved by the Minister is being or is to be constructed.

(2) An owner of vacant land who desires to have a building project approved by the Minister shall, in the manner determined by the Minister, apply to the Minister for approval and shall —

(a)	furnish such information as the Minister may require; and
(b)	within 6 months of the date of grant of permission to develop the building project under the Planning Act [Cap. 232] or within such longer period as the Minister may in his discretion allow, inform the Minister of that fact.

(3) The Minister may in his discretion approve a building project for the purposes of this Order.

Exemption

4. Subject to the provisions of this Order, vacant land on which construction works of an approved building project are undertaken shall be exempt from tax, from the date of commencement of the foundation works until the earlier of —

(a)	the date of expiry of the period of 5 years calculated from the date of commencement of the foundation works; or
(b)	the date of issue of the TOP for the building or, where TOP is not issued, the date of CSC.

Claim for exemption

5. An owner shall, in the manner determined by the Comptroller, inform the Comptroller of the period in respect of which exemption under this Order is claimed.

Notice of commencement of foundation works

6. An owner shall give written notice to the Comptroller of the date of commencement of the foundation works of the approved building project within 6 months of the commencement of the period in respect of which exemption is claimed.

Delay in application

7. Where notice of the date of commencement of the foundation works of the approved building project is served on the Comptroller after the period referred to in paragraph 6, and the Comptroller does not accept the owner’s reason for the delay, the exemption under this Order shall be from the date 6 months before the date on which the Comptroller received that notice until the earlier of —

(a)	the date of the TOP of the building or, where TOP is not issued, the date of the CSC; or
(b)	the date of expiry of the period of 5 years from the date of commencement of the foundation works.

Disqualification

8. No land shall be exempt from tax under this Order if —

(a)	there is no valid written permission to develop the land under section 10 of the Planning Act [Cap. 232] or no valid permit to commence or carry out building works under section 7 of the Building Control Act [Cap. 29] for the period in respect of which exemption is claimed; or
(b)	during the period in respect of which the exemption is claimed, any rent or fee is charged by the owner for the use of the land or the buildings on the land, or any part thereof.

Exemption for land developed in phases

9.—(1) Where land is developed in phases, the exemption may, at the discretion of the Comptroller, be granted phase by phase so that only such part of the land that is being developed in a phase shall be exempt from tax and the Comptroller may apportion the annual value of the land for the purpose of the exemption.

(2) Sub-paragraph (1) shall not apply to a building that is being constructed in stages or phases.

Exemption to cease upon planning permission or building permit ceasing to be valid

10. An exemption under this Order shall cease if, and from the date when, the written permission to develop under section 10 of the Planning Act [Cap. 232] or the permit to commence or carry out building works under section 7 of the Building Control Act [Cap. 29] ceases to be valid.

Purchaser to enjoy remaining period of exemption

11. Where land that is exempt from tax under this Order is sold, assigned or transferred, the purchaser, assignee or transferee of the land shall only be entitled to the benefit of the exemption for the period of exemption remaining at the date of the agreement of sale, assignment or transfer.

Change of circumstances

12. An exemption under this Order shall cease if the circumstances which qualified the owner for the exemption have changed.

Savings

13. Notwithstanding the revocation of the Property Tax (Exemption of Land under Development Order —

(a)	subject to sub-paragraph (b), where vacant land was exempted from tax under the revoked Property Tax (Exemption of Land under Development) Order for a period specified in that Order, such land shall continue to be exempt from tax until the expiry of that period; and
(b)	where vacant land was developed in phases and the land under a phase of the development was exempted from tax under the revoked Property Tax (Exemption of Land under Development) Order [O 5] for a period specified in that Order, only such land under the particular phase of development as was exempted from tax shall continue to be exempt from tax until the expiry of that period.

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