
Knowledge Highlights 27 January 2025
On 7 April 2020, the new Covid-19 (Temporary Measures) Act (“Act”) was enacted. The Act provides temporary and targeted measures aimed at alleviating the unexpected pressures the Covid-19 pandemic has caused to firms and businesses, among other stakeholders.
This article provides an overview of the provisions of the Act that impose a duty on owners to transfer the benefit received from any reduction in property tax on any non-residential property from prescribed property tax remissions given in response to the Covid-19 epidemic or pandemic (“benefit”) to tenants of the property. The provisions would also allow tenants to take action against the landlord for failing to do so, and for landlords and tenants to bring disputes in relation to the transfer of the benefit before a Valuation Review Panel (“Panel”). The provisions will come into force on a date to be appointed.
Obligation to transfer tax rebate benefit
The Act will impose the following obligations (“Obligations”) on an owner of non-residential property, where the property is leased or licensed by the owner (“owner”), who benefits from a prescribed remission of property tax:
The Obligations apply whether the prescribed tax remission was made before, on or after the date of commencement of the relevant provisions of the Act.
The Act provides that an owner who, without reasonable excuse, fails to fulfil any one of the Obligations shall be guilty of an offence and shall be liable on conviction to a fine not exceeding S$5,000.
Manner in which benefit is passed to be prescribed
The manner in which the benefit may be passed may be prescribed as a single method, or a combination of methods, which are not limited to:
The owner must not subject the passing of the benefit to any condition (whether a condition precedent or subsequent), including any change to any term or condition of the lease or licence agreement with the tenant. Any such condition which the owner purports to impose is void.
Disputes in relation to transfer of benefit
The owner or tenant may apply for a dispute to be heard and determined by a Panel for the following issues:
The Panel may make further directions for compliance by the owner. The Act provides that applications to the Panel must be determined, having regard to the nature and complexity of the dispute, as soon as is reasonably practicable.
Determinations and further directions made by the Panel may, with leave of the court, be enforced in the same manner as a judgment or an order of the court to the same effect. Such determinations and further directions may be appealed to the High Court.
Reference materials
The following reference materials are available on the Singapore Statutes Online website sso.agc.gov.sg and the Ministry of Law website www.mlaw.gov.sg:
Further information
Allen & Gledhill has a Covid-19 Resource Centre on our website www.allenandgledhill.com that contains published knowhow on legal and regulatory aspects of the Covid-19 crisis.
In addition, we have a cross-disciplinary Covid-19 Legal Task Force consisting of Partners across various practice areas to provide rapid assistance. Should you have any queries, please do not hesitate to get in touch with us at covid19taskforce@allenandgledhill.com.