Property Tax (Exemption of Land under Development) Order 1998

No. S 261

Property Tax Act

(Chapter 254)

Property Tax (Exemption of Land under Development) Order 1998

In exercise of the powers conferred by section 6(5B) of the Property Tax Act, the Minister for Finance hereby makes the following Order:

Citation and commencement

1. This Order may be cited as the Property Tax (Exemption of Land under Development) Order 1998 and shall be deemed to have come into operation on 27th February 1998.

Definitions

2. In this Order —

“Building Authority” has the same meaning as in the Building Control Act (Cap. 29);

“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 and, where more than one CSC is issued in respect of a building, means the first CSC so issued;

“owner” means the owner of any vacant land on which a permanent building is being or is to be constructed;

“permanent building” means a building constructed with concrete or brick walls or floors and intended to be used for a period of 20 years or more;

“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 so issued.

Exemption

3. Subject to this Order, any vacant land on which construction works of a permanent building are undertaken shall be exempt from tax during the following period:

(a)

where the foundation works for the building commenced before 27th February 1998, from that date until the earlier of —

(i)	the date of expiry of 5 years from that date; and
(ii)	the date of issue of the TOP or, where TOP is not issued, the date of issue of the CSC; or

(b)

where the foundation works for the building commenced on or after 27th February 1998, from the date of commencement of the foundation works until the earlier of —

(i)	the date of expiry of 5 years from the date of commencement of the foundation works; and
(ii)	the date of issue of the TOP or, where TOP is not issued, the date of issue of the CSC.

Period of exemption from date of commencement of foundation works until completion of floor slab of first floor or lowest basement not to exceed 6 months

4.—(1) The maximum period of exemption under paragraph 3 in respect of any vacant land from the date of commencement of the foundation works for the building to be constructed on the land until the completion of the floor slab of the first storey or the lowest basement of the building shall not exceed 6 months or such other period as may be determined by the Comptroller under sub-paragraph (2).

(2) Where the period from the date of commencement of the foundation works for the building to be constructed on any vacant land until the completion of the floor slab of the first storey or lowest basement of the building exceeds 6 months and the Comptroller is satisfied that the excess period is reasonable, the period of 6 months referred to in sub-paragraph (1) shall be extended to such longer period as the Comptroller may, in his discretion, determine.

(3) Any period in excess of the period of 6 months referred to in sub-paragraph (1) or in excess of the extended period determined under sub-paragraph (2) in respect of any vacant land shall not qualify for exemption under paragraph 3, and the total period of exemption specified in paragraph 3 in respect of the land shall be reduced by such period in excess that does not qualify for exemption.

(4) Nothing in this paragraph shall be construed as extending the total period of exemption specified in paragraph 3 in respect of any vacant land.

Application for exemption where foundation works commenced before 27th February 1998

5.—(1) An owner of any vacant land which qualifies for exemption from tax under paragraph 3(a) shall comply with this paragraph.

(2) The owner shall give written notice to the Comptroller of the date of commencement of the foundation works for the building to be constructed on the land within 6 months of 24th April 1998.

(3) Where the foundation works and the floor slab of the first storey or the lowest basement of the building were completed before 27th February 1998, an application for exemption shall be made to the Comptroller in writing at the same time the notice referred to in sub-paragraph (2) is given.

(4) Where the foundation works for the building to be constructed on the land commenced before 27th February 1998 and the floor slab of the first storey or the lowest basement of the building were completed during the period from 27th February 1998 to 24th April 1998, an application for exemption shall be made to the Comptroller in writing within 6 months of 24th April 1998.

Application for exemption where foundation works commenced on or after 27th February 1998

6.—(1) An owner of any vacant land which qualifies for exemption from tax under paragraph 3(b) shall comply with this paragraph.

(2) The owner shall give written notice to the Comptroller of the date of commencement of the foundation works for the building to be constructed on the land within 14 days of the period in respect of which the exemption is claimed by him.

(3) An application for exemption shall be made in writing within 6 months of the completion of the foundation works for the building and the floor slab of the first storey or the lowest basement of the building.

Delay in application

7.—(1) Where the notice of the date of commencement of the foundation works for the building to be constructed on the land referred to in paragraph 5 or 6 is not given to the Comptroller within the time specified therein by the owner of the land and the Comptroller does not accept the owner's reason for the delay, the period of exemption under paragraph 3 in respect of the land shall be from the date on which the Comptroller receives the notice until the earlier of —

(a)

the date of issue of the TOP or, where TOP is not issued, the date of issue of the CSC; and

(b)

the date of expiry of 5 years —

(i)	from 27th February 1998, where the foundation works for the building commenced before that date; or
(ii)	from the date of commencement of the foundation works for the building, where such foundation works commenced on or after 27th February 1998.

(2) Where the application for exemption referred to in paragraph 5 or 6 is not made to the Comptroller within the time specified therein by the owner of the land and the Comptroller does not accept the owner's reason for the delay, the period of exemption under paragraph 3 in respect of the land shall be from the date on which the Comptroller receives the application until the earlier of —

(a)

the date of issue of the TOP or, where TOP is not issued, the date of issue of the CSC; and

(b)

the date of expiry of 5 years —

(i)	from 27th February 1998, where the foundation works for the building commenced before that date; or
(ii)	from the date of commencement of the foundation works for the building, where such foundation works commenced on or after 27th February 1998.

Comptroller may extend time for lodging of notice and application for exemption

8. The Comptroller may, in his discretion, extend the time for the giving of the notice and for the making of the application for exemption under paragraphs 5 and 6.

Disqualifications

9. The exemption from tax under this Order in respect of any vacant land shall not be granted if —

(a)	the owner of the land has not made his application for exemption in accordance with paragraph 5 or 6;
(b)	there is no valid written permission under section 14 of the Planning Act 1998 (Act 3 of 1998) or a valid permit to commence or carry out building works under section 7 of the Building Control Act (Cap. 29) in respect of the land for the period in respect of which the exemption is claimed;
(c)	the architect in charge has not certified that the foundation works for the building to be constructed on the land and floor slab of the first storey or the lowest basement of the building have been completed; or
(d)	during the period in respect of which the exemption is claimed, any rental is received or fee is charged by the owner for the use of the land or the buildings thereon or any part thereof.

Approval of exemption

10.—(1) Where an application for exemption from tax in respect of any vacant land has been approved, the Comptroller shall inform the applicant in writing of the approval and of the effective date of the period of exemption.

(2) Upon the approval of the exemption and the satisfaction of the Comptroller that the owner of the vacant land has complied with the provisions of this Order, the Comptroller shall refund to the owner the amount of tax he has paid in respect of the period of exemption.

Exemption for land developed in phases

11.—(1) Where any vacant land is developed in phases, the exemption from tax in respect of the land shall be given phase by phase so that only such part of the land that is being developed in a phase shall be exempted from tax and the Comptroller may apportion the annual value of the land for the purpose of the exemption.

(2) No exemption from tax shall be granted under this paragraph by reason only of the fact that a building on the land is being constructed in stages or phases.

Purchaser, assignee or transferee of land to enjoy remaining period of exemption

12. The purchaser, assignee or transferee of any vacant land in respect of which an exemption from tax under this Order has been granted shall be eligible for no more than the period of exemption specified in paragraph 3 remaining at the date of the agreement of sale, assignment or transfer of the land.

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

13. If the written planning permission granted under section 14 of the Planning Act 1998 (Act 3 of 1998) or the permit to commence or carry out building works under section 7 of the Building Control Act (Cap. 29) in respect of any vacant land ceases to be valid before the expiry of the period of exemption specified in paragraph 3 in respect of the land, any exemption from tax in respect of the land under this Order shall terminate on the date of such cessation.

Change of circumstances

14.—(1) Any exemption from tax in respect of any vacant land under this Order shall cease where the circumstances that qualified the land for the exemption have changed.

(2) The owner of any land which is exempted from tax under this Order shall notify the Comptroller in writing of any change in the circumstances that qualified the land for the exemption from tax within 15 days thereof.

(3) Any owner of any land who fails to comply with sub-paragraph (2) shall be guilty of an offence.

Application of Order

15.—(1) Subject to sub-paragraph (2), this Order shall not apply to —

(a)	any vacant land on which construction works of a permanent building were completed before 27th February 1998; and
(b)	any vacant land owned by a statutory board.

(2) Where a licensee of any land owned by a statutory board who undertakes construction works on the land by agreement with the statutory board is able to comply with the provisions of this Order if the licensee were the owner of the land, this Order shall apply, with the necessary modifications, to the licensee as if he were the owner of the land.

Revocation

16. The Property Tax (Exemption of Land under Development) Order (O 5) is revoked.

Savings

17. Notwithstanding paragraph 16 —

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

Made this 17th day of April 1998.

NGIAM TONG DOW

Permanent Secretary,
Ministry of Finance,
Singapore.

[MF(R) R50.3.002 Vol. 6; AG/LEG/SL/254/97/1 Vol. 1]

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