SINGAPORE Law and Practice Contributed by: Dorothy Marie Ng, Monica Yip, Tay Peng Cheng and Tan Shao Tong, WongPartnership LLP
8. Tax 8.1 VAT and Sales Tax
7.6 Liens or Encumbrances in the Event of Non-payment The contractor has no right under general law to impose a lien or otherwise encumber an immov - able property in the event of non-payment. However, a contractor has the statutory right under the Building and Construction Industry Security of Payment Act 2004 to a lien over unfixed goods supplied by the contractor that have not been paid for, if the contractor has obtained an adjudication determination in its favour under the Act and the amount determined thereunder has not been paid. 7.7 Requirements Before Use or Inhabitation Under Singapore law, a development must com - ply with the statutory requirements stipulated under the BC Act and Building Control Regula - tions 2003, including the obtaining of all neces - sary clearances from the relevant government agencies (eg, the URA, Land Transport Authority, National Parks Board, Singapore Civil Defence Force, Public Utilities Board and National Envi - ronment Agency), before a Certificate of Statu - tory Completion (CSC) is issued to certify that the development is fit for occupation. Alternatively, if the development has certain out - standing issues but has nonetheless fulfilled the requirements or clearances suitable for occupa - tion, a Temporary Occupation Permit (TOP) may first be issued, allowing the development to be inhabited. The application for the TOP or CSC is to be made by the QP to the Building and Construc - tion Authority at a suitable stage upon comple - tion of the works.
Singapore currently imposes GST at the prevail - ing rate of 9% on all imports of goods and tax - able supplies of goods and services made by a taxable person in the course or furtherance of carrying on a business. A purchaser of non-residential real estate will be liable for payment of the GST unless the pur - chase is part of the transfer of a business as a going concern and the prescribed conditions for exemption are satisfied. However, supplies of residential property are exempt from GST. 8.2 Mitigation of Tax Liability Subject to the fulfilment of conditions, the remis - sion of stamp duty is available at law in a number of circumstances (eg, reconstruction of certain companies and transfers between certain asso - ciated companies). Under Section 33A of the Stamp Duties Act 1929, there is a general anti- avoidance rule that grants broad powers to the Commissioner of Stamp Duties to challenge any arrangement that reduces or avoids liability for stamp duty. 8.3 Municipal Taxes Apart from GST and stamp duty, businesses owning immovable property are also subject to property tax at the rate of up to 10% on the annual value of the property. 8.4 Income Tax Withholding for Foreign Investors Rental income is subject to income tax, which is payable by the landlord. The prevailing corpo - rate tax rate is 17%. Where real estate is sold by a seller who is a property trader, gains are also subject to income tax. Where the seller is a prop - erty trader who is not resident in Singapore and
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