Prescribed criteria for reduction of additional rental relief and requirement for statutory declaration
38.—(1) Subject to paragraph (2), the prescribed criteria mentioned in sections 19M(3)(c) and 19N(1)(c) of the Act to be satisfied by an applicant (being a landlord of a prescribed property) for a reduction of the additional rental relief are as follows:
(a)
the applicant is an individual or a sole proprietorship and is the owner of the prescribed property;
[S 835/2020 wef 30/09/2020]
(b)
the aggregate of the annual values of all the investment properties (including the prescribed property) owned by the applicant (whether solely or together with another person and whether directly or through any investment holding corporation) is not more than $60,000 as at 13 April 2020;
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(ba)
the applicant is beneficially entitled to all of the rental income derived from the prescribed property during the period in the prescribed period that the applicant is a landlord of that prescribed property (called in this regulation the period X);
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(c)
one of the following is satisfied:
(i)
where the applicant derived rental income from every specified property in the year of assessment 2019 and the applicant furnished a return of income for that year of assessment under section 62(1) of the Income Tax Act 1947 — the aggregate of the average monthly rental income derived by the applicant from every specified property in the year of assessment 2019 constituted 75% or more of the applicant’s average monthly gross income in that year of assessment;
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(ii)
where sub-paragraph (i) does not apply but the applicant derived rental income from every specified property in the year of assessment 2020 and the applicant furnished a return of income for that year of assessment under section 62(1) of the Income Tax Act 1947 — the aggregate of the average monthly rental income derived by the applicant from every specified property in the year of assessment 2020 constituted 75% or more of the applicant’s average monthly gross income in that year of assessment;
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(iii)
where sub-paragraphs (i) and (ii) do not apply and —
(A)
the prescribed property is a Type A property — the aggregate of the average monthly rental income (that would have been derived by the applicant from every specified property during the period from 1 April 2020 to 31 July 2020 (both dates inclusive) had sections 19H(1) and 19J(1) of the Act not applied to that specified property), would have constituted 75% or more of the applicant’s average monthly gross income for that period; or
(B)
the prescribed property is a Type B property — the aggregate of the average monthly rental income (that would have been derived by the applicant from every specified property during the period from 1 April 2020 to 31 May 2020 (both dates inclusive) had sections 19H(1) and 19J(1) of the Act not applied to that specified property), would have constituted 75% or more of the applicant’s average monthly gross income for that period.
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(2) In the case where the applicant is one of the owners of the prescribed property, the applicant must —
(a)
make the application for a determination under section 19M(3)(c) of the Act; and
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(b)
satisfy the criteria prescribed in paragraph (1).
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(2A) Where 2 or more owners of the prescribed property apply for a reduction of the additional rental relief, then, for the purpose of paragraph (2)(b), the reference in paragraph (1)(ba) to the applicant being beneficially entitled to all of the rental income is to all of those owners who so applied being beneficially entitled to all of the rental income.
[S 193/2021 wef 01/04/2021]
(2B) In a case where the applicants are 2 or more of the owners of the prescribed property, each applicant must, when making an application for a determination under section 19M(3)(c) of the Act, provide a statutory declaration stating that the applicant is beneficially entitled to rental income derived from the prescribed property during period X that, together with the rental income derived from the prescribed property during period X to which every other applicant is beneficially entitled, constitutes all of the rental income derived from the prescribed property during period X.
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(3) In this regulation —
“annual value” has the meaning given by section 2(1) of the Property Tax Act 1960;
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“investment holding corporation” means a corporation —
(a)
whose operation consists wholly or mainly of the holding or making of investments; and
(b)
where the applicant controls more than 50% of the company’s voting shares or voting power;
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“investment property” does not include the residential property at which the applicant resides;
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“prescribed period” means —
(a)
where the prescribed property is a Type A property — the prescribed period mentioned in regulation 12(1);
(b)
where the prescribed property is a Type B property — the prescribed period mentioned in regulation 13(1); and
(c)
where the prescribed property is a property described in regulation 13A(1)(a) and (b) — the period from 1 April 2020 to 31 July 2020 (both dates inclusive);
[S 193/2021 wef 01/04/2021]
“specified property” means a prescribed property described in paragraph (1)(b) in respect of which the additional criteria for additional rental relief in regulation 14 is satisfied by the PTO of the property.