GST Guide for Property Owners and Property Holding Companies (9th Edition)

IRAS e-Tax Guide

GST: Guide for Property Owners and Property

Holding Companies

(Ninth Edition)

Published by

Inland Revenue Authority of Singapore

Published on 1 Jan 2024

First edition on 6 Feb 2015

Second edition on 29 Oct 2015

Third edition on 1 Jan 2018

Fourth edition on 12 Jul 2019

Fifth edition on 16 Sep 2019

Sixth edition on 8 Jan 2021

Seventh edition on 30 Sep 2022

Eighth edition on 1 Jan 2023

Disclaimers: IRAS shall not be responsible or held accountable in any way for any damage, loss or expense whatsoever,

arising directly or indirectly from any inaccuracy or incompleteness in the Contents of this e-Tax Guide, or errors or omissions

in the transmission of the Contents. IRAS shall not be responsible or held accountable in any way for any decision made or

action taken by you or any third party in reliance upon the Contents in this e-Tax Guide. This information aims to provide a

better general understanding of taxpayers’ tax obligations and is not intended to comprehensively address all possible tax

issues that may arise. While every effort has been made to ensure that this information is consistent with existing law and

practice, should there be any changes, IRAS reserves the right to vary its position accordingly.

photocopying and recording without the written permission of the copyright holder, application for which should be

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retrieval system of any nature.

Table of Contents

Page

1 Aim ....................................................................................................................... 1

2 At a glance ........................................................................................................... 1

3 Glossary ............................................................................................................... 3

4 Do I have to charge and account for GST? .......................................................... 5

5 What are residential properties? .......................................................................... 5

6 Do I have to register for GST? ............................................................................. 7

7 GST on sale of property ....................................................................................... 9

8 GST on letting of property .................................................................................. 14

9 Can I claim input tax? ........................................................................................ 24

10 Transitional issues arising from the sale of property with existing tenancy ........ 25

11 Contact information ............................................................................................ 27

12 Updates and amendments ................................................................................. 28

Appendix 1: Definition of buildings covered under the GST (Buildings, Flats and

Tenements for Residential Purposes) Order ...................................................... 30

Appendix 2: Payment schedule for commercial property under development .......... 32

GST: Guide for Property Owners and Property Holding Companies

1 Aim

1.1 This guide explains how GST affects you as a property owner or a property

holding company. It guides you on the application of GST for property

transactions and helps you decide whether you need to register for GST if you

are involved in property transactions.

1.2 This guide also clarifies the type of property that qualifies for GST exemption.

1.3 If you are a property developer, you should also refer to our e-Tax guide on

"GST: Guide for Property Developer" for issues related to the nature of your

business.

2 At a glance

2.1 The sale and lease of all properties in Singapore are subject to GST, except for

the sale and lease of residential properties which are exempt from GST.

2.2 Where the sale or lease relates to a mixed-use property, GST is chargeable on

the part of the property that is approved for non-residential use while the part of

the property that is approved for residential use is exempt from GST.

2.3 If the residential property is sold or leased with furniture and fittings (e.g.

refrigerator, washing machine, dryer), only the sale or lease of the bare

residential property is exempt from GST. GST is chargeable on the sale or

lease of furniture and fittings in the residential property.

2.4 GST is claimable on the purchase and rental of non-residential property if the

property is used or will be used to conduct business activities which will in turn,

generate taxable supplies.

Reverse charge

2.5 From 1 Jan 2020, if you are a GST-registered person who procures services

from overseas suppliers (“imported services”), you may be subject to reverse

charge if you are not entitled to full input tax credit or if you belong to a GST

group that is not entitled to full input tax credit.

2.6 From 1 Jan 2023, a GST-registered person who is subject to reverse charge,

will be required to perform reverse charge on all purchases of imported low-

value goods (“LVG

”), except those directly attributable to taxable supplies. This

includes all LVG purchased from local and overseas suppliers, electronic

marketplace operators and redeliverers, regardless of whether they are GST-

registered or not.

For definition of LVG, please refer to the e-Tax Guide GST: Taxing imported low-value goods by way

of the overseas vendor registration regime.

GST: Guide for Property Owners and Property Holding Companies

2.7 The application of reverse charge will mean that you have to account for GST

on the imported services and the LVG imported as if you are the supplier, except

where they are specifically excluded from the scope of the reverse charge. You

will also be entitled to claim the corresponding GST as your input tax, subject

to the normal input tax recovery rules.

2.8 For more information on reverse charge, please refer to the e-Tax Guide “GST:

Reverse Charge”.

3 Glossary

3.1 Completed properties

For the purpose of this guide, completed properties refer to properties that have

obtained the Temporary Occupation Permit (“TOP”).

3.2 GST

GST is a tax on the supply of goods and services made in Singapore by a

taxable person in the course or furtherance of any business carried on by him

and on the importation of goods into Singapore.

3.3 Input tax

Input tax is the GST paid/payable on: -

(i) supplies of goods and/or services; and

(ii) importation of any goods into Singapore,

where the goods or services are used or to be used by a taxable person for the

purpose of his business.

3.4 Invoice

Invoice includes any document that serves as a bill for payment for supplies

made by a GST-registered supplier. An example would be a debit note.

3.5 Output tax

Output tax refers to the GST charged on taxable supplies of goods and/or

services made in Singapore.

3.6 Open market value

The amount that would be taken as its value under section 17(2) of the GST

Act if the supply were for such consideration in money as would be payable by

a person who has no relationship with any person which would affect that

consideration.

3.7 Properties under development

For the purpose of this guide, properties under development refer to properties

that have not obtained the Temporary Occupation Permit (“TOP”).

3.8 Sub-sale

For the purpose of this guide, sub-sale refers to the sale of a property before

the title of the property is transferred to the seller.

3.9 Tax fraction

Fraction of prevailing GST rate / (100 + prevailing GST rate). For example, if

the prevailing GST rate is 9%, the tax fraction is 9/109.

3.10 Tax invoice

Tax invoice means such an invoice as is required under section 41 of the GST

Act. For more information on tax invoice, please refer to our e-Tax guide on

“GST: General Guide for Businesses”.

3.11 Temporary Occupation Permit (“TOP”)

When the building works are completed, the applicant and the Qualified Person

shall apply to the Commissioner of Building Control for a Certificate of Statutory

Completion (“CSC”) or a Temporary Occupation Permit (“TOP”). The building

can only be occupied when a CSC or TOP is granted.

3.12 Time of supply

Time of supply will determine when a taxable person is required to charge and

account for GST on the supply of goods and/or services made.

4 Do I have to charge and account for GST?

4.1 For GST purposes, the sale and lease of all properties other than residential

properties are subject to GST. If you are registered for GST, you have to charge

GST when you sell or let out a non-residential property. The GST chargeable

on the sale and rental shall be accounted for as output tax in your GST returns.

4.2 The sale and lease of an unfurnished residential property is exempt from GST.

You cannot charge GST on the sale or lease of such properties. If you are

GST-registered, you have to report in your GST return the sale or rental of

unfurnished residential properties as exempt supply.

4.3 From 1 Jan 2020, if you are registered for GST and not entitled to full input tax

credit or belong to a GST group that is not entitled to full input tax credit, you

will have to account for GST on the value of services procured from overseas

suppliers (“imported services”) that fall within the scope of reverse charge. With

effect from 1 Jan 2023, the scope of reverse charge will be extended to include

purchases of imported low-value good (“LVG”). For example, if you are selling

or leasing residential properties and procure imported services or low-value

goods in relation to such activities, you will need to apply reverse charge on the

imported services or the low-value goods since you are a partial-exempt

business.

5 What are residential properties?

5.1 Residential properties refer to vacant residential land, and residential building,

flat, or tenement (referred to as ‘building’).

Land

5.2 It is considered as residential land if it is a vacant land zoned ‘Residential’ in the

Master Plan and the use of the land is approved for residential or condominium

development.

5.3 Residential land includes vacant land or land with existing building (which is

required by the Government or public authority to be demolished) which is

supplied by the Government or public authority and approved exclusively for

residential or condominium development.

Building

5.4 A building is a residential building if it is approved for use or approved to be

used for residential purposes. Please refer to the approved use

of the building

that is granted by the relevant authorities during the relevant period in which the

supply occur.

As shown in the “Written Permission”, “Temporary Permission” or “Provisional Permission” issued by

the Urban Redevelopment Authority (“URA”) or letters issued by the Housing & Development Board

(“HDB”), Singapore Land Authority (“SLA”) and Jurong Town Corporation (“JTC”).

5.5 Buildings which are approved for “residential use” by URA qualify for GST

exemption. Examples of buildings approved for “residential use” by URA are:

(i) condominium flat,

(ii) detached house,

(iii) semi-detached house,

(iv) terrace house,

(v) townhouse,

(vi) cluster housing,

(vii) strata landed house, and

(viii) upper floors of a shophouse if these floors are approved for residential

purposes only

5.6 If there are buildings which are not approved for “residential use” by URA and

not prescribed as residential properties in the GST (Buildings, Flats and

Tenements for Residential Purposes) Order, but are used principally for

residential purposes. They could still be considered as residential properties

for GST purpose if the following two indicators are met:

 the main purpose of the building (based on approved use) is for

accommodation; and

 there is permanency (e.g. medium to long term which generally refers to a

period of 6 months or more) to the use or the proposed use of the building

for the purpose of accommodation by a person.

Prescribed List of Residential Buildings, Flats and Tenements

5.7 In addition, the GST (Buildings, Flats and Tenements for Residential Purposes)

Order prescribes the following buildings as residential properties:

(i) Home for the Aged

(ii) Serviced Apartments

(iii) Student’s Hostels

(iv) Workers’ Dormitories

(v) Welfare Home for the Destitute, or Families or Individuals in Crisis

Prescribed List of Non-Residential Buildings, Flats and Tenements

5.8 The buildings that are prescribed as non-residential properties in the GST

(Buildings, Flats and Tenements for Residential Purposes) Order are:

(i) Hotels, boarding houses or guest houses

(ii) Chalets

(iii) Convalescent homes, nursing homes or hospice

(iv) Hospitals

(v) Sports and recreational clubs with accommodation facilities

(vi) Welfare homes for purposes of rehabilitation

5.9 For the definition of the buildings in the prescribed list, please refer to Appendix

5.10 For residential property which is used as home office (for example, Small Office

Home Office

), the taxability of the property will depend on the approved use of

the building granted by the relevant authorities. If the building is approved for

“residential use”, the sale and lease of the property will be exempt. However,

if the building is approved for non-residential use such as “office use”, the sale

and lease of the property will be taxable.

6 Do I have to register for GST?

6.1 With effect from 1 Jan 2019

, you have to be registered for GST if your taxable

supplies at the end of any calendar year exceed S$1 million. If you are making

taxable supplies and expect to make taxable supplies exceeding S$1 million in

the next 12 months, you are also required to register.

6.2 The sale of a residential property is an exempt supply. If you are not registered

for GST and are selling a residential property, you do not need to register even

if the price exceeds $1 million.

6.3 The sale of a non-residential property is a taxable supply. If you are not

registered for GST, you may have to register for GST as a result of the sale, if

you are in the business of selling properties. The business need not be one

that is registered with ACRA. Records of your past purchases and sales of

properties (both residential and non-residential) can be used to determine

whether you are involved in the business of selling properties. The following

are some of the business tests that may be used to determine whether you are

in the business of selling properties:

(i) Whether the person is carrying on activities that amount to a 'serious

undertaking earnestly pursued' or a ‘serious occupation not necessarily

confined to commercial or profit making undertakings'

(ii) Whether the activities are actively pursued with reasonable or

recognisable continuity.

(iii) Whether the activities are conducted in a regular manner and measured

by the value of supplies made periodically. This means that supplies

should be made regularly and fairly frequently as part of a continuing

business activity.

(iv) Whether the activities are conducted on sound and recognised business

principles. The activities should have the characteristics of a commercial

undertaking with business practices and record keeping.

(v) Whether the person is carrying on activities that are predominantly

concerned with the making of taxable supplies to consumers for a

consideration.

A common marketing term used by the developers. It is not a planning term adopted by URA.

Prior to 1 Jan 2019, you have to register for GST if your taxable supplies at the end of any calendar

quarter (i.e. three months ending March, June, September or December) and the past three quarters

exceed S$1 million.

(vi) Whether the taxable supplies are of a kind that are commonly made by

those who seek to profit by them. An activity is more likely to be regarded

as a business activity if others are carrying on the same activity and

doing it for a commercial reason.

6.4 The conclusion from these tests will hinge on the facts of each case and the

extent to which these tests have been satisfied. If you are in doubt, please

submit details of the property transaction (including information on the above

factors) to seek a Ruling from the Comptroller of GST.

6.5 Generally, when you enter into a contract to sell a non-residential property

which is your business asset, you will expect to make taxable supplies of the

property within next 12 months. Hence, you have to include the selling price of

the property in the computation of your taxable supplies. If the selling price and

the value of any other taxable supplies derived from other business activities

that you will be conducting in the 12-month period are expected to exceed $1

million, you have to register for GST. You have to apply for registration within

30 days from the date you confirm the supplies will be made. For sale and

lease of properties, this date would be the date of contract.

6.6 You do not have to register for GST if you are disposing of a capital asset of

your business. The value of the capital asset should not be taken into the

computation of taxable supplies in determining your liability to register.

6.7 With the implementation of reverse charge with effect from 1 Jan 2020, you are

also required to register for GST if:

(i) You import or expect to import services and low-value goods

under the

scope of reverse charge exceeding S$1 million in a 12-month period;

and

(ii) you are not entitled to full input tax credit if you are GST-registered.

6.8 For more information on the registration rules under reverse charge, please

refer to the e-Tax Guide “GST: Reverse Charge”.

With effect from 1 Jan 2023.

6.9 The GST treatment in the following paragraphs is applicable to a GST-

registered property owner and property holding company.

7 GST on sale of property

How to account for GST?

7.1 You have to account for GST on the sale price of a non-residential property at

the prevailing GST rate. However, if the sale is not conducted at arm's length,

i.e. you sell it at a discounted price or nominal value under certain arrangement

which benefits you or the other party, you have to account for GST based on

the open market value of the property at the time of sale. The open market

value of a property may be determined by an independent property valuer.

7.2 If you do not charge GST on the agreed sale price, the sale price shall be

treated as inclusive of GST. You have to account for the GST based on the tax

fraction of the sale price.

When to account for GST?

7.3 For the sale of a completed property, you would normally receive an option

fee, followed by a deposit when the option is exercised. You will have to

account for GST on both the option fee and deposit at the earlier of when

payment is received or when an invoice is issued. When the property is

transferred to the buyer, you have to account for GST on the remaining sum at

the earliest of the following events:

(i) when payment is received,

(ii) when an invoice is issued,

(iii) when the title of the property is transferred upon legal completion; or

(iv) when the property is made available to the buyer for occupation.

7.4 The issuance of any type of invoice will be an event that triggers the time of

supply. This includes a tax invoice as well as any document that serves as a bill

for payment for supplies made by a GST-registered supplier. An example of

such document would be a debit note.

7.5 In general, documents such as sales order, pro-forma invoice, statement of

accounts and letter/statement of claims are not considered as invoices for GST

time of supply purposes. This is because these documents are often not billing

for payments and would therefore not be treated as invoices based on normal

commercial practices.

7.6 For more details, please refer to the e-Tax Guide on “GST: Time of Supply

Rules”.

7.7 For the sale of a property under development, you would normally collect

progressive payments from time to time according to the schedule of payments

specified in the agreement. (Refer to Appendix 2 for a standard payment

schedule for the sale of a commercial property under development). The

property is usually made available to the buyer for occupation after the issuance

of Temporary Occupation Permit (TOP). GST has to be accounted for at the

earlier of when payment is received or when tax invoice/invoice (whichever is

applicable) is issued for each progressive payment until the property is made

available or the title is transferred to the buyer upon legal completion (whichever

is earlier). Once the property is made available or transferred to the buyer, you

have to account for GST for the remaining sale proceeds (regardless of whether

the remaining sum for the property has been received in full) at the earliest of

events (i) to (iv) mentioned in paragraph 7.3.

7.8 A payment could be held by your solicitors as stakeholders' money. In applying

paragraphs 7.3 to 7.7, you treat the payment as received only when the

stakeholders' money is released to you.

Do I have to account for GST on aborted sale?

7.9 If your sale of a non-residential property is aborted after the option has been

granted to the buyer, you are required to charge and account for GST on the

value of option/booking fee retained because it is the payment for your supply

of goods in granting the buyer an equitable interest in the non-residential

property. However, you do not have to charge and account for GST on the

amount retained in excess of the option/booking fee if it is provided for in the

agreement as it is compensatory in nature.

Do I have to account for GST on Assignment of Option?

7.10 You are given an option to purchase a non-residential property, but decided not

to exercise the option. If you assign the benefit of the option to purchase to

another party and allow the other party to exercise the option, you are making

a separate supply of goods in respect of an assignment of the right over the

non-residential property. You have to charge and account for GST on the sum

of money you collect from the other party. This sum includes the option money

you have paid to the vendor as well as any profit you make on such assignment.

7.11 However, if the option to purchase is granted to you and your nominee, and you

allow your nominee to exercise the option (with no separate contract entered

into between you and your nominee for the assignment of right and there is no

mark-up charged to your nominee), there is no supply made by you to your

nominee.

How to account for GST on sub-sale of a property?

For completed properties

7.12 You have signed an agreement (either a Sale & Purchase Agreement or an

Option to Purchase) to buy a non-residential property but decided to sell it to

another party before the legal completion of the property i.e. before the property

was transferred to your name. The sale of property by you to the other party is

referred to as a “sub-sale” of property. You have to charge and account for

GST on the sub-sale of the non-residential property to the sub-purchaser based

on the full selling price agreed.

Example 1

Property owner, O1 Pte Ltd entered into a Sale & Purchase Agreement with

Developer, D1 Pte Ltd to purchase a non-residential property that has obtained

the Temporary Occupation Permit for $1million. Before the legal completion of

the sale of the property, O1 Pte Ltd sold the property to a sub-purchaser, P1 Pte

Ltd for $1.3 million.

Up to the date of the sub-sale, O1 Pte Ltd had only paid a 20% deposit of

$200,000 to D1 Pte Ltd. The remaining amount of $800,000 (including the final

10% payable upon the completion of the S&P) is still due to the developer.

Hence, P1 Pte Ltd only has to pay the amount of $500,000 (i.e. $1.3 million -

$800,000) to O1 Pte Ltd and the remaining amount of $800,000 is to be paid to

D1 Pte Ltd.

$200,000 paid to D1 $500,000 paid to O1

Sale of property at $1 million Sale of property at $1.3 million

$800,000 paid to D1 upon sub-sale

In this case, D1 Pte Ltd has to charge and account for GST on the sale of property

to O1 Pte Ltd based on the full selling price of $1 million. When D1 Pte Ltd

receives the payment from P1 Pte Ltd upon the sub-sale, it does not have to

account and charge GST on the payment received as the GST has been

accounted for previously.

Similarly, O1 Pte Ltd has to charge and account for GST on the sub-sale of

property to P1 Pte Ltd based on the full selling price of $1.3 million even though it

has only collected $500,000 in total from P1 Pte Ltd.

For properties under development

7.13 If you sell a non-residential property which is still under development (i.e. the

property has not obtained TOP) to another party, you only have to charge and

account for GST on the excess of the sub-sale price over any progressive

payments (remaining uncalled) due to the developer after the sub-sale.

Example 2

Property owner, O2 Pte Ltd entered into a Sale & Purchase Agreement to buy a

non-residential property under development from a developer, D2 Pte Ltd for

$1million. Before the issuance of TOP of the property, O2 Pte Ltd sold the

property to a sub-purchaser P2 Pte Ltd for $1.3 million.

Up to the date of the sub-sale, O2 Pte Ltd only paid progressive payments up to

$400,000 to the developer. There is an outstanding payment of $600,000 due to

the developer.

Hence, P2 Pte Ltd only has to pay the amount of $700,000 (i.e. $1.3 million -

$600,000) to O2 Pte Ltd and the remaining amount of $600,000 is to be paid to

D2 Pte Ltd.

Developer

(D1 Pte Ltd)

Property

Owner

(O1 Pte Ltd)

Sub-

purchaser

(P1 Pte Ltd)

$400,000 paid to D2 $700,000 paid to O2

Sale of ppty Sale of ppty

at $1 million at $1.3 million

$600,000 paid to D2 upon the sub-sale

In this case, D2 Pte Ltd has to charge GST to:

(i) O2 Pte Ltd on the progressive payments of $400,000; and

(ii) P2 Pte Ltd on the subsequent progressive payments that make up the

remaining $600,000.

O2 Pte Ltd only has to charge P2 Pte Ltd GST on the $700,000, being the value

of the supply to P2 Pte Ltd for the sub-sale.

If TOP has been issued in respect of the property at the time O2 Pte Ltd invoices

P2 Pte Ltd for the sub-sale, the property will be treated as a completed property

for GST purposes and the GST treatment in paragraph 7.12 applies.

How to account for GST on the sale of a mixed-use property?

7.14 If you are selling a building that is approved for mixed use i.e. part of the building

is approved for residential use and the other part for non-residential use (e.g. a

2-storey shophouse where the first storey is approved for non-residential use

and the 2

storey is approved for residential use), you have to charge and

account for GST on the part of the selling price that is attributable to the value

of the non-residential portion of the building. The proportion of the selling price

attributable to the non-residential component and residential component of the

building must be supported by an independent valuation given by a professional

valuer.

7.15 If you wish to adopt the independent valuation provided by the buyer, you may

do so as long as both parties mutually agree. Otherwise, you should rely on

your valuation to charge GST. In either case, you should ensure that a valuation

report is maintained to support the proportion of the residential and non-

residential portions of the building respectively.

7.16 There may be instances where the final selling price of the building differs from

your initial valuation. If so, you should charge GST based on the following

method:

Final selling price = $X

Valuation of the non-residential component = $Y

Valuation of both the residential and non-residential components = $Z

GST Chargeable

Applicable GST Rate

Property

Owner

(O2 Pte Ltd)

Sub-

purchaser

(P2 Pte Ltd)

Developer

(D2 Pte Ltd)

Do I have to charge GST on the sale of vacant land?

7.17 If you are selling vacant land that is not zoned exclusively for residential use

(e.g. vacant land zoned “Residential and Commercial”), or is not any vacant

land supplied by the Government or such public authority as may be approved

by the Minister which is approved exclusively for residential or condominium

development, you have to charge GST on the full selling price. If the buyer is

GST registered and wish to claim the GST paid on the purchase of the land, he

would need to satisfy the normal input tax claim conditions.

Do I have to charge GST on the sale of a furnished residential property?

7.18 The sale of an unfurnished residential property is not subject to GST. Fixtures

such as built-in cabinets and wardrobes, kitchen and sanitary wares, wall-

mounted air-conditioners that are attached permanently to the property can be

exempt from GST together with the residential unit. Any furniture, furnishing,

fittings, appliances and effects that are sold together with the residential unit

are subject to GST. You are required to charge GST on the furniture, furnishing,

fittings, appliances and effects based on their open market value or costs.

Do I have to account for GST on the transfer of non-residential property

by way of in specie distribution?

7.19 If you have transferred a non-residential property by way of distribution in

specie, you are deemed to be making a supply of goods even if you did not

receive consideration for the supply. You will be required to account for output

tax based on the open market value of the property transferred if you have

previously claimed input tax on the property.

Do I have to charge GST if I recover the property tax from the buyer?

7.20 You may have already paid the property tax for the whole year. When you sell

the property during the year, you may recover from the buyer a pro-rated portion

of the property tax. This amount recovered is in addition to the sale price of the

property. You do not have to charge GST on the portion of property tax

recovered from the buyer as it is a disbursement.

8 GST on letting of property

Do I have to account for GST?

8.1 If you let out a non-residential property, you have to charge and account for

GST on the rental collected if the property held is a business asset or you are

conducting a leasing business.

8.2 You are conducting a leasing business if you satisfy the business tests in

paragraph 6.3 above and retain a degree of control and management in relation

to the letting of the property.

8.3 Apart from the business tests, sole-proprietors and partnerships are treated as

conducting a leasing business if they create three or more leases from the

properties owned, regardless of whether the leases relate to residential or non-

residential properties. To illustrate, the sole-proprietor or partnership will be

treated as conducting a leasing business if it lets out:

(i) three or more properties;

(ii) one property which is partitioned to create three or more leases; or

(iii) two properties, where one of them is partitioned to create two or more

leases.

8.4 If the sole-proprietor or partnership is regarded as carrying on a leasing

business and it is GST registered, for its lease of residential properties, it will

have to charge and account for GST on the rental of the furniture and fittings of

the furnished unit. The rental of the bare residential unit is exempt from GST.

For non-residential properties, the entire rental including the rental of the

furniture and fittings will be subject to GST. For more details, please refer to

paragraphs 8.24 to 8.29.

How to account for GST?

8.5 If you let out a non-residential property, you have to charge and account for

GST on the rental at the prevailing GST rate. If the lease is not transacted at

arm’s length, GST shall be based on its open market value.

8.6 If you allow another person to occupy and use your property or part of it free of

charge, you are deemed to make a supply of service to that person. Therefore,

you are required to account for output tax on that deemed supply of service.

GST shall be accounted for based on the portion of the rental you paid (if you

rent the property from a property owner) or 1/12 the annual value of the property

(if you are the property owner) in proportion to the Gross Floor Area occupied

by that person.

When to account for GST?

8.7 When you let out a property, you have to account for GST on the rental at the

earlier of the following:

(i) the date you receive the rental payment; or

(ii) the date you issue an invoice.

8.8 This rule applies regardless of whether you are collecting rental on monthly, bi-

monthly, quarterly or half-yearly basis.

8.9 If you issue one tax invoice for monthly rentals covering a number of months in

advance for a period not exceeding 3 years, you must state the due date for

each rental and the corresponding GST chargeable in the tax invoice.

Accordingly, you will account for GST on each rental at the earlier of the

following:

(i) the due date of each rental payment; or

(ii) the date you received the rental payment.

Do I have to account for GST on the granting of rent-free period?

8.10 If you grant your tenant a rent-free period with nothing received by you in return

(e.g. the rent-free period is offered in order for the tenant to fit out the premises

to its specifications) and it is provided as part of the terms of your tenancy or

lease agreement, you do not have to deem a supply on that rent-free period

and account for GST.

8.11 On the other hand, if you grant the rent-free period in return for a benefit to you

(e.g. the tenant carries out repair works on the property for your benefit in return

for the rent-free period), there are 2 separate supplies for GST purposes.

Although there is no separate payment made for the repair works or the lease

of property during the rent-free period, your tenant is making a supply of repair

works to you, while you are making a supply in the lease of the property to your

tenant. You have to charge your tenant GST and account for output tax on the

equivalent rental for this period, and your tenant (if he is also GST-registered)

has to charge you GST and account for output tax on the value of repair works.

Do I have to account for GST on the letting of common areas?

8.12 Sometimes, you may let out the common areas outside your shop premises or

in the shopping atrium for use by your tenants for sales promotion activities.

You may have charged your tenant only a nominal sum of say $1. You can

account for the GST based on the nominal rent, if: -

(i) the tenant is not related to you;

(ii) the common areas are not normally let out at a commercial rate; and

(iii) you do not receive any benefits from the tenant.

8.13 If all the 3 conditions cannot be satisfied, you would have to account for GST

based on the open market rental of the common area.

Do I have to account for GST on early termination of lease?

8.14 If you claim compensation from your tenant according to the terms provided in

the lease contract for early termination of lease, you do not have to charge and

account for GST on the compensation received. The compensation represents

liquidated damages for the breach of contract and is not subject to GST.

8.15 Where the lease contract does not include any provision for an early

termination, the sum of money paid by your tenant for the lease agreement to

be terminated early is a taxable supply. The payment is regarded as the

consideration for your surrendering of rights to continue the tenancy with the

tenant. Accordingly, you have to charge GST on the payment received.

8.16 Similarly, where the lease contract does not include any provision for an early

termination and you wish to terminate a lease and pay your tenant a sum of

money for him to “surrender” the lease and move out, the tenant is regarded

as making a supply to you. If your tenant is registered for GST, he will have to

charge GST on the payment you make to him.

Do I have to account for GST on the double rent charged to tenants for

holding over?

8.17 Double rent or double the amount of rent is charged by the landlord to the

tenants when the tenants failed to deliver vacant possession of the lease

property or continue to occupy the premises after the end of the tenancy term.

The charge is for the continuation of supply of the property in return for the

double rent received for holding over after the expiration or earlier termination

of a tenancy. Accordingly, you will have to charge and account for GST on the

double rent that you received in relation to the lease of a non-residential

property.

Do I have to account for GST on rental deposit?

8.18 When you enter into a lease agreement, you may collect rental deposit from

your tenant as a form of security. You do not have to charge and account for

GST on the rental deposit if it is refundable upon completion of the lease term.

8.19 However, if you subsequently use the whole or part of the deposit to offset any

rent payable or payment for goods and services provided, this amount is subject

to GST. Hence, the whole or part of the deposit used to offset the rent payable

or payment will be treated as inclusive of the corresponding GST. You have to

account for the GST at the time you utilise the amount to offset the rental or

payment.

Example 3

Property owner, O3 Pte Ltd has entered into a lease agreement with tenant, T3

Pte Ltd to lease an office unit for a year. The gross monthly rental is $2,000 and

O3 Pte Ltd has collected rental deposit of $4,000 from T3 Pte Ltd as security

deposit. As this amount will be refunded to T3 Pte Ltd upon completion of the

lease term, O3 Pte Ltd did not charge and account for GST on the deposit

collected.

At the end of the tenancy, O3 Pte Ltd noticed that certain repair works were

required for the property. Under the agreement, T3 Pte Ltd has to pay for the

repairs. However, T3 Pte Ltd did not carry out the repair works and O3 Pte Ltd

had to hire a contractor to perform repair works. O3 Pte Ltd incurred $500

(inclusive of GST) for the repair works and had decided to recover the amount

from T3 Pte Ltd by utilising the security deposit.

When O3 Pte Ltd draws on part of the deposit to pay for the repair works, it has

to charge and account for the GST upon utilisation. The amount drawn down as

the payment of the repair works will be taken to be GST-inclusive. Hence, O3

Pte Ltd will have to account for GST ($41.28) based on the tax fraction of 9/109

on $500.

8.20 If you retain the deposit according to the provisions of the lease agreement

when there is an early termination of lease, you do not have to account for GST

if it is compensatory in nature. If the deposit retained becomes part of the

settlement for your surrender of right to continue the tenancy with the tenant,

you have to account for the GST.

Do I have to account for GST on recovery of property tax?

8.21 As an owner of the property, you are obligated to pay the property tax.

Therefore, if you let out a non-residential property and recover the property tax

from the tenant according to the terms provided in the lease contract, the

recovery of property tax is considered as a reimbursement.

8.22 As the property tax recovered forms part and parcel of the rental consideration,

you have to charge and account for GST on the recovery of property tax in

relation to the lease of a non-residential property. Conversely, if you are

recovering property tax in relation to the lease of a residential property, you do

not have to charge and account for GST as the rental is exempt from GST.

How to account for GST on the letting of a mixed-use property?

8.23 If you are letting a property which is approved for mixed use (part of the building

approved for residential use, and the other part for non-residential use, as in

the case of a shophouse), you have to charge and account for GST on the part

of the rental relating to the non-residential portion of the building. If your rental

is not split into the residential and non-residential portions, you may determine

the rental value of the commercial portion based on open market value.

Do I have to account for GST on the letting of a furnished residential

property?

8.24 If you let out a residential property on an unfurnished basis, the entire rental is

exempt from GST. However, if you let out a residential property with furniture

and fittings, the rental of the bare unit is exempt but the rental of the furniture

and fittings is taxable.

8.25 The monthly rental value of the bare residential unit shall be taken to be 1/12 of

the annual value of the property (as shown in the Valuation List and Valuation

Notice). The monthly rental value of furniture and fittings will be the difference

between the gross monthly rental (total rental) of the furnished property and

1/12 of the annual value of the property. If the actual gross monthly rental is

lower than 1/12 of the annual value of the property, you do not need to charge

GST on the rental of furniture and fittings. You should report the full gross

monthly rental of the property as an exempt supply in your GST return.

Example 4

Property owner, O4 Pte Ltd has entered into a lease agreement with tenant,

T4 Pte Ltd to lease a furnished residential apartment unit for a month. The

gross monthly rental is $2,000 and the breakdown of the gross monthly rental

is as follows: -

Rental of a flat = $1,500 per month

Rental of the furniture and fittings = $ 500 per month

Total rental of the furnished flat = $2,000 per month

O3 Pte Ltd has to determine the value of supply of the bare rental and the

value of supply of the furniture of fittings as follows:

Annual Value in the Valuation List = $36,000

1/12 x $36,000 = $3,000 per month

Value of supply of furniture and fittings = $2,000 - $3,000

(per month) = NIL (the value of supply of

furniture and fittings in this

instance is lower than 1/12

of the annual value of the

property)

Value of exempt supply to report in GST return = $2,000 (per month)

(This is the gross monthly

rental)

O4 Pte Ltd does not have to charge and account for GST on the rental of

furniture and fittings as the gross monthly rental is not more than 1/12 of the

annual value of the property. This is notwithstanding that the rental of

furniture and fittings has been separately identified and stated in the tenancy

agreement as $500.

8.26 If the furnished residential unit is let out for half a month, the above method of

computation shall still apply to the rental charged for the half-month.

Example 5

Property owner, O5 Pte Ltd has entered into a lease agreement with tenant, T5

Pte Ltd to lease a furnished residential apartment unit for half a month. The rental

is negotiated at $4,500 per month and the breakdown of the rental of $4,500 is as

follows: -

Rental of a flat = $2,500 per month

Rental of the furniture and fittings = $2,000 per month

Total rental of the furnished flat = $4,500 per month

or $2,250 for half month

O5 Pte Ltd has to determine the value of supply of the bare rental and the value

of supply of the furniture of fittings as follows:

Annual Value in the Valuation List = $36,000

Value of exempt supply (per month) = 1/12 x $36,000

= $3,000 per month

or $1,500 for half month

Value of supply of furniture and fittings = $2,250 - $1,500

(per month) = $750 for half month

O5 Pte Ltd has to charge and account for GST on $750, being the rental value of

furniture and fittings. If the rental of $2,250 is inclusive of GST, O5 Pte Ltd can

charge and account for GST based on the tax fraction of 9/109 on $750.

8.27 You may let out a new property and the annual value is not available at the time

the property is let out. In the interim, you may take the actual rental of the

furniture and fittings specified in the contract as the value of taxable supply to

account for GST.

8.28 When there is a revision to annual values, and if the valuation notice takes effect

from a date earlier than the date of the valuation notice, you do not need to

make retrospective adjustments to the value of exempt supplies if you do not

wish to do so. You also do not need to make adjustments if you have already

issued a tax invoice to your tenant prior to the date of the valuation notice.

If you have lodged an objection on the annual value in the valuation notice, you

should still continue to use the annual value in the valuation notice to compute

the exempt supplies. If the annual value of the property in the valuation notice

is subsequently revised by the Chief Assessor, you may then make

retrospective adjustments to the exempt supplies on the revised annual value.

8.29 If you have not issued a tax invoice to your tenant and you will be issuing one:

(i) within 14 days from the date of valuation notice, you do not have to apply

the revised annual value in the tax invoice (you will need to adopt it from

the next tax billing); or

(ii) after 14 days from the date of valuation notice, you will have to adopt the

revised annual value in the tax invoice.

Do I have to account for GST on the letting of a serviced apartment?

8.30 If you let out a furnished serviced apartment, only the rental of the bare unit is

exempt. The rental of the furniture and fittings, provision of utilities as well as

the provision of services such as house-keeping, security and maintenance of

common facilities are taxable.

8.31 Similar to the letting of a furnished residential property, the monthly rental value

of the bare residential unit shall be taken to be 1/12 of the Annual Value of the

residential property (as shown in the Valuation List and Valuation Notice). The

balance of the rental will be taxable.

Example 6

Property owner, O6 Pte Ltd has entered into a lease agreement with tenant, T6

Pte Ltd to lease a furnished serviced apartment unit for $5,200 per month. The

breakdown of the rental of $5,200 shown in the lease agreement is as follows: -

Service charge = $ 700 per month

Rental of a flat = $2,500 per month

Rental of the furniture and fittings = $2,000 per month

Total rental of the furnished flat = $5,200 per month

O6 Pte Ltd has to determine the value of supply of the bare rental and the value

of supply of the furniture of fittings as follows:

Annual Value in the Valuation List = $36,000

Value of exempt supply (per month) = 1/12 x $36,000

= $3,000 per month

Value of supply of furniture and fittings (per month) = $4,500 - $3,000

= $1,500 per month

O6 Pte Ltd has to charge and account for GST on $2,200, being the rental value

of furniture and fittings and value of service charge per month. If the rental of

$5,200 is inclusive of GST, O6 Pte Ltd can charge and account for GST based on

the tax fraction of 9/109 on $2,200.

8.32 If you own a block of serviced apartments and there is only one annual value

for the entire property, you may apportion 1/12 of the annual value according to

the net lettable floor area (floor area of the apartments excluding common areas

such as corridors and lobbies) to arrive at the exempt value for each apartment

unit.

Do I have to account for GST on the letting of workers’ dormitories

(“WD”)?

8.33 The letting of WDs is regarded as provision of bed spaces with furniture and

fittings. As WDs are regarded as residential properties for GST purposes, the

provision of the bed space will be exempt from GST but the rental of the

furniture and fittings is taxable. In your supply of WD, you may also provide

additional services such as cleaning, laundry, security and maintenance of

common facilities and such services are subject to GST.

8.34 If the rental of the WD is charged on a lump sum basis, you are required to split

the rental of bed space and furniture and fittings into exempt and taxable

components respectively. To do so, you have to determine the rental value of

the taxable components, for example, the value may be determined after taking

into account the actual costs incurred to provide the furniture and fittings with a

reasonable mark-up.

Do I have to account for GST on property used by employee?

Free accommodation

8.35 If you provide a furnished apartment to your employee for non-business

purpose without charging any rent, you are not entitled to claim input tax on the

furniture and fittings. Accordingly, you do not have to deem a supply on the

value of furniture and fittings.

8.36 In contrast to paragraph 8.35, if you have claimed input tax on the purchase of

furnished apartment originally intended for business use and subsequently let

your employee use the furnished apartment for free, you are required to account

for output tax on the deemed supply of furniture and fittings.

Subsidised accommodation

8.37 You have entered into a contract with the landlord directly as a principal for the

rental of furnished residential apartment and in turn, grant your employees the

right to use the apartment. You subsidised the rental which comprises both the

rental of furniture and fittings and the apartment. When you recover the

subsidised rental from your employee, you have to charge GST on the

subsidised rental based on the following method:

Open Market Rental (i.e. total rental incurred) = $A

Value of exempt supply = 1/12 of AV

Value of taxable supply of furniture & fittings = $A - 1/12 of AV = $B

GST chargeable on subsidised rental

Subsidised Rental

Applicable GST Rate

Example 7

Company, C7 Pte Ltd entered into lease agreement with the property owner, O7

Pte Ltd to lease a furnished residential apartment unit for $6,000 per month. The

breakdown of the rental of $6,000 is as follows: -

Rental of a flat = $3,000 per month

Rental of the furniture and fittings = $3,000 per month

Total rental of the furnished flat = $6,000 per month (A)

C7 Pte Ltd only subsidises its employee’s rental up to a cap of $5,000. Hence,

C7 Pte Ltd recovers the balance amount of $1,000 from its employee every

month.

C7 Pte Ltd has to determine the value of supply of the bare rental and the value

of supply of the furniture of fittings as follows:

Annual Value in the Valuation List =$24,000

Value of exempt supply (per month) = 1/12 x $24,000

= $2,000 per month

Value of supply of furniture and fittings = $6,000 - $2,000

(per month) = $4,000 per month (B)

GST chargeable on subsidised rental = $4,000/$6,000 x $1,000 x 9%

= 2/3 x $1,000 x 9%

= $666.67 x 9%

= $60.00

C7 Pte Ltd has to charge and account for GST on $666.67, being the rental value

of furniture and fittings. If the rental of $1,000 is inclusive of GST, C7 Pte Ltd can

charge and account for GST based on the tax fraction of 9/109 on $666.67.

Do I have to account for GST on the service charges?

8.38 In the letting of your property, if you recover the monthly maintenance or service

charges (which you pay to the developer or Management Corporation) from

your tenant, you have to charge and account for GST on the maintenance or

service charges regardless of whether your property is residential or non-

residential.

9 Can I claim input tax?

9.1 If you are registered for GST, you can claim GST incurred in relation to the

purchase and rental of a non-residential property as your input tax, so long as

the property is used to conduct your business or let out for the purpose of

business. The business must make taxable supplies from which you collect

GST and account for output tax. The input tax claimable includes the GST

incurred on the purchase price, rental, maintenance or service charges,

purchase of furniture and fittings, renovation and repairs, conveyance fees, etc.

9.2 If you operate a serviced apartment or any mixed development comprising both

residential and non-residential components, you have to segregate your

purchases into the following categories:

(i) Those directly for the making of taxable supplies (e.g. purchase of non-

residential part of the development which will be rented out separately for a

fee with GST such as business center, meeting room, or multi-purpose

function room, purchase of furniture and fittings, utilities, cleaning services,

security services, maintenance of the facilities and common areas);

(ii) Those directly for the making of exempt supplies (e.g. purchase of the

residential part of the development, purchase of fixtures such as built-in

cabinets and wardrobes, kitchen and sanitary wares, wall-mounted air

conditioners that are attached permanently to the residential property); and

(iii) Those for the making of both taxable and exempt supplies (e.g. advertising,

fire insurance that covers both the bare apartment and the contents within).

Such costs are termed as common costs.

The GST incurred in category (i) is claimable in full.

The GST incurred in category (ii) cannot be claimed at all.

The GST incurred in category (iii) is termed residual input tax which is subject

to apportionment.

9.3 You will have to apportion the residual input tax and claim only the portion

attributable to taxable supplies using the ratio formula as shown below in the

prescribed accounting periods and as well as over the longer accounting period

(i.e. longer period adjustment):

Value of taxable supplies

Residual input tax

Value of total supplies

You may add Regulation 33 exempt supplies to the numerator if you are not a Regulation 34 trader

and you satisfy Regulation 35 of the GST Regulations. Please refer to our e-Tax guide on “GST:

Partial Exemption and Input Tax Recovery”, for more information on Regulations 33, 34 and 35.

Total supplies = Standard-rated supplies + Zero-rated supplies + Exempt supplies. You may deduct

from the denominator the value of exempt supplies approved by the Comptroller as incidental exempt

supplies.

9.4 Please note that the value of relevant supplies received from your supplier that

are subject to customer accounting, imported services and LVG

that are

subject to reverse charge should be excluded from both the numerator and

denominator of the ratio formula.

9.5 The residual input tax recovery rate computed must be rounded off to the

nearest whole number.

9.6 If you have accounted for GST on imported services (e.g. procure interior

design, remodeling and furnishing services from overseas suppliers) or LVG

under reverse charge, you may claim the corresponding GST as your input tax

in the same prescribed accounting period that reverse charge is applied, subject

to the normal input tax recovery rules.

9.7 If the property is acquired jointly with other persons who are not involved in your

business as business partners (as in the case of a partnership), you may claim

only a part of the GST incurred as input tax in proportion to your share of

ownership on the property. Accordingly, when you sell the property, you have

to charge and account for output tax on the sale based on your share of

ownership.

9.8 If you acquire a non-residential property from a non GST-registered person via

a sub-sale, he cannot charge GST on his sale to you. If he recovers from you

the GST that he paid to the vendor, you cannot claim the GST as your input tax

as this is not a tax charged to you by the GST registered vendor.

9.9 If you have claimed and been allowed the GST incurred on the purchase of a

non-residential property as input tax, and continue to own the property at the

time you de-register from GST, you have to deem a supply on this property.

You have to account for the output tax on the deemed supply based on the

open market value of the property at the prevailing GST rate. The deemed

supply must be accounted for in your GST F8 “Final Return”.

10 Transitional issues arising from the sale of property with existing tenancy

Rental billed in advance

10.1 You have sold a non-residential property with existing tenancies and assigned

all the existing agreements to the property buyer. If you have issued tax

invoices in respect of rental that are billed in advance for the period

on/after/straddling the date of sale (‘affected period’) to the tenants, you are

required to issue credit notes to the tenants to reverse the rental charged for

the period after the sale. The property buyer will have to issue invoices to the

tenants for the same period.

10.2 As an administrative concession, if the property buyer is also registered for

GST, you do not have to issue credit notes to the tenants for the affected period.

With effect from 1 Jan 2023.

However, the property buyer will have to issue a tax invoice to you to recover

the amount of rental billed in advance for the affected period and charge GST

on the recovery of rental from you.

Input tax claims

10.3 Similarly, the suppliers may have issued tax invoices to you prior to the sale of

the property in respect of supplies that are billed in advance for the period

on/after/straddling the date of sale (‘affected period’). In such situations, the

suppliers should issue credit notes to you and re-issue the invoices to the

property buyer for supplies covering the affected period.

10.4 As an administrative concession, the suppliers do not have to issue credit notes

to you and you are allowed to claim the entire GST on the tax invoices.

However, you will have to issue a tax invoice to the property buyer to recover

the proportionate share of the expenses which should be borne by the property

buyer from the date of the sale. GST should be charged accordingly on the

recovery of expenses.

11 Contact information

For enquiries on this e-Tax guide, please contact the Goods and Services Tax

Division at www.iras.gov.sg (select “Contact Us”).

12 Updates and amendments

Date of

amendment

Amendments made

1 29 Oct 2015

 Amended paragraph 8.3 on leasing business.

 Amended paragraphs 8.9 and 8.10 on rent-free

periods.

2 1 Jan 2018

 Amended para 5.1 to 5.4 on the definition of

residential properties.

 New paragraph 8.16 on double rent.

 Amended paragraph 8.27 on annual value in

valuation list.

 Amended paragraph 9.3 on ratio formula.

 Other editorial changes.

3 12 Jul 2019

 Amended paragraph 8.3 on leasing business.

 New paragraph 8.4 on leasing business.

 Inserted Example 3 on furnished residential

property.

 Amended paragraph 8.25 on furnished residential

property.

 Amended Example 5 on serviced apartment.

 Other editorial changes.

4 16 Sep 2019

 New paragraphs 2.5, 2.6, 4.3, 6.7, 6.8, 9.4 and 9.6

on imported services.

 Amended paragraph 6.1 on registration liability.

5 8 Jan 2021

 Amended para 8.19 to provide for clarity that the

use of security deposit to set-off the repair cost is

treated as GST inclusive.

 Inserted Example 3 on security deposit set-off.

 Inserted Para 8.33 and 8.34 on workers’

dormitories.

 Other editorial changes.

6 30 Sep 2022

 Inserted paragraph 2.6 and amended paragraph

4.3 to explain the requirement to apply reverse

charge to imported low-value goods.

 Amended paragraph 6.7 to include the value of

imported low-value goods purchased in

considering the liability to register for GST under

reverse charge with effect from 1 Jan 2023.

 Amended paragraph 9.4 to explain that value of

imported low-value goods purchased should be

excluded from both the numerator and

denominator of the residual input tax

apportionment formula with effect from 1 Jan

2023.

 Amended paragraph 9.6 to include input tax

claims incurred on low-value goods.

 Amended paragraph 11 on contact information.

 Editorial amendments to paragraph 6.8.

7 1 Jan 2023

 Revised paragraph 3.9, Example 3, 5, 6 and 7 to

update GST rate.

8 1 Jan 2024

 Revised paragraph 3.9, Example 3, 5, 6 and 7 to

update GST rate.

Appendix 1: Definition of buildings covered under the GST (Buildings, Flats

and Tenements for Residential Purposes) Order

Type Definition

Homes for the Aged

Premises that are:

 licensed by Ministry of Social and Family

Development (“MSF”) under the “Homes For The

Aged Act”; and

 providing personal care (e.g assistance with

washing, eating) to residents of old age.

Homes that provide treatment or nursing beyond

personal care may fall within the exclusion for

convalescent homes, nursing homes and hospitals.

Serviced apartments

Premises comprising furnished, self-contained

apartments with provided daily amenities rented out for

lodging purpose for a minimum stay of 7 days.

It excludes hotels, boarding houses, guest houses,

chalets and sports and recreational clubs with

accommodation facilities.

Students’ hostels Premises provided board and lodging to students.

Workers’ dormitories

Premises used for lodging workers’ with approval

obtained from the relevant agencies such as URA and

Housing Development Board (“HDB”).

Homes for the

destitute

Premises established under the “Destitute Persons Act”.

Home for the

families or

individuals in crisis

Premises that are:

 regulated by MSF;

 operated by MSF or Voluntary Welfare Organisations

(VWO); and

 providing accommodation to facilities or individuals in

crisis (e.g. victims of family violence, families who are

unable to secure immediate accommodation).

Type Definition

Hotels, boarding

houses or guest

houses

Premises that are:

 licensed by Hotel Licensing Board under the “Hotel

Act”; and

 run as a business undertaking for the purpose of

gain or profit.

The rooms in these premises are typically let or sub-let

for hire for periods of less than one week

Hospitals,

convalescent homes,

nursing homes or

hospice

Premises that are licenses by MOH under the “Private

Hospitals and Medical Clinic Act”. The predominant

purpose of such premises is to provide nursing or

medical care. This is distinguished from homes for the

aged (see definition above) which primarily provide

accommodation as alternatives to dwelling houses.

Chalets, sports and

recreational clubs

with accommodation

facilities

Such premises include:

 a building used as a sports club, sports complex,

recreation club, clubhouse, fitness centre or

gymnasium.

 sites for holiday chalets, bungalow or resort; and

 any accommodation in a building, hut, caravan,

houseboat or other structure held out suitable for

recreational or leisure use.

Accommodation on such premises is typically for short-

termed stay.

Homes or other

institutions providing

rehabilitation

services

Premises operated by a body or organization which has

a certain overarching authority over the residents on

how the establishment should be used.

The residents of such homes require care and

rehabilitation and include the following: -

 past or present dependence on alcohol or drugs;

 ex-offenders who have completed their

sentences from prison; and

 children and young persons aged between seven

and 16 years who have committed offences or

who are beyond parental control.

Section 2 to the Hotel Act defines “Hotel” as follows: - Hotel includes a boarding house, lodging-

house, guest-house and any building or premises not being a public institution and containing not

less than 4 rooms or cubicles in which persons are harboured or lodged for hire or reward of any

kind and where any domestic service is provided by the owner, lessee, tenant, occupier or manager

for the person so harboured or lodged.

Section 14(a) to the Hotel Act provides that any premises in which rooms or parts of rooms are let

or sub-let for hire for periods of less than one week constitute a hotel.

Appendix 2: Payment schedule for commercial property under development

Stage

Payment

(i) Grant of Option to Purchase (valid for 3

weeks)

5% booking fee

(ii) Upon signing of Sale & Purchase

Agreement

20% less 5% booking fee

(iii)

Completion of foundation work of unit

10%

(iv)

Completion of reinforced concrete

framework of unit

10%

(v)

Completion of brick walls of unit

(vi)

Completion of ceiling of unit

(vii)

Completion of electrical wiring, internal

plastering, plumbing and installation of door

and window frames of unit

(viii)

Completed installation of electrical plant,

sanitary equipment and air-conditioning

plant (if any) of unit

(ix)

Completion of car park, roads and drains

serving the building

(x) Within 14 days after the Purchaser receives

the Temporary Occupation Permit or

Certificate of Statutory Completion in

respect of the unit

25%

(xi)

On completion date 10%

- 2% of the Selling Price to

the developer; and

- 8% of the Selling Price to

the Singapore Academy of

Law as stakeholder