Property Tax (Exemption of Land under Development) (Off-Budget) Order 2001

No. S 557

Property Tax Act

(Chapter 254)

Property Tax (Exemption of Land under Development) (Off-budget) Order 2001

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) (Off-Budget) Order 2001 and shall be deemed to have come into operation on 12th October 2001.

Definitions

2. In this Order, unless the context otherwise requires —

“Commissioner of Building Control” 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 Commissioner of Building Control under section 21(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 other than a temporary building as defined in section 2(1) of the Building Control Act;

“TOP” means the temporary occupation permit in respect of a building issued by the Commissioner of Building Control under section 21(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 on or before 12th October 2001, from 12th October 2001 until —

(i)	11th October 2003; or
(ii)	the date of issue of the TOP or, where TOP is not issued, the date of issue of the CSC, for the building,

whichever is the earlier; and

(b)

where the foundation works for the building commenced after 12th October 2001, from the date of commencement of the foundation works until —

(i)	11th October 2003; or
(ii)	the date of issue of the TOP or, where TOP is not issued, the date of issue of the CSC, for the building,

whichever is the earlier.

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) The Comptroller may extend the period of 6 months referred to in sub-paragraph (1) to such period beyond 6 months as he thinks reasonable.

(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 on or before 12th October 2001

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 referred to in paragraph 3(a) not later than 12th April 2002.

(3) Where the foundation works and the floor slab of the first storey or the lowest basement of the building were completed on or before 12th October 2001, 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 12th October 2001 and the floor slab of the first storey or the lowest basement of the building were completed after 12th October 2001, an application for exemption shall be made to the Comptroller in writing within a period of 6 months beginning on the date of completion of the foundation works for the building and the floor slab of the first storey or the lowest basement of the building.

Application for exemption where foundation works commenced after 12th October 2001

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 referred to in paragraph 3(b) within 14 days of the date of the commencement of the foundation works for the building.

(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 —

(a)	11th October 2003; or
(b)	the date of issue of the TOP or, where TOP is not issued, the date of issue of the CSC, for the building,

whichever is the earlier.

(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 —

(a)	11th October 2003; or
(b)	the date of issue of the TOP or, where TOP is not issued, the date of issue of the CSC, for the building,

whichever is the earlier.

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 paragraph 5 or 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 (Cap. 232) 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 buildings 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 dates of the period of exemption.

(2) Where —

(a)	the application for exemption from tax referred to in sub-paragraph (1) has been approved; and
(b)	the Comptroller is satisfied 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 (Cap. 232) 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 of such change.

(3) Any owner of any land who contravenes sub-paragraph (2) shall be guilty of an offence.

Application of this 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 12th October 2001; and
(b)	any vacant land owned by a statutory board.

(2) Where —

(a)	a licensee of any land owned by a statutory board undertakes construction works on the land by agreement with the statutory board; and
(b)	the licensee is able to comply with the provisions of this Order as 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.

Made this 7th day of November 2001.

LIM SIONG GUAN

Permanent Secretary,
Ministry of Finance,
Singapore.

[MF(R) R50.3.002 Vol. 12; AG/LEG/SL/254/1997/1 Vol. 1]

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