Amendments to Property Tax Act clarify tax treatment for structural networks

Structural networks like pipelines, cables, ducts and railway lines will be subjected to property tax by January 1.

The provision is one of the changes to the Property Tax Act which was passed in Parliament on Tuesday.

Senior Minister of State for Finance Lim Hwee Hua says the Inland Revenue Authority of Singapore (IRAS) currently taxes structural networks together with the building to which they are attached.

For example, electricity networks are assessed together with the substations.

But the current rules does not specifically hold owners of the structural network responsible for paying property taxes for parts of the networks that pass through lands they do not own.

The changes to the Act will spell out clearer rules.

Mrs Lim says it is proposed that the boundaries of the building be used to demarcate parts of the structural network which may not be considered as machinery and hence be subjected to property tax.

The change will bring Singapore in line with practices in Britain and Hong Kong.

Source : Channel NewsAsia – 18 Nov 2008

Join The Discussion

Compare listings