30 October 2015
On 29 October 2015, the Inland Revenue Authority of Singapore (IRAS) published the second edition of the “GST: Guide for property owners and property holding companies”.
Generally, 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.
Where the sale and 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.
If the residential property is sold or leased with furniture and fittings, 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.
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.
The e-Tax Guide gives explanations on the application of GST for property transactions and registration for GST. It also clarifies the type of property that qualifies for GST exemption. (Property developers are to also refer to the e-Tax Guide on “GST: Guide for Property Developer”).
In this update, the following paragraphs were amended:
- Paragraph 8.3 on leasing business
- Paragraphs 8.9 and 8.10 on rent-free periods
The first edition was published on 6 February 2015.
Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website. Visit www.iras.gov.sg for more information.
You must be logged in to post a comment.