If the landlord does not do so, the Act provides for that amount to be recoverable as a debt due from the landlord to you. 42. FAQs for Rental Relief Framework for SMEs & NPOs, 1. National disability sports associations; c) Where (i) the sum of Property Tax Rebate and Government cash grant is more than the 2 or 1 month(s) Rental Relief and (ii) the Property Tax Rebate is more than the 2 or 1 month(s) Rental Relief owners are obliged to give, owners are allowed to keep the excess Government cash grant but the excess Property Tax Rebate must be passed on to the tenant in accordance with the Property Tax Rebate scheme. What should property owners do if the Government assistance (Property Tax Rebate for Year 2020 and Government cash grant) is not equal to the Rental Relief that the tenant is entitled to? This would include Government grants, if any. With the new Rental Relief Framework, are property owners still required to pass on the Property Tax Rebate for Year 2020?↩. 20. If a property is owned by more than one owner, can the owner(s) still apply for an assessment on the grounds of financial hardship?↩, 52. What are some examples of disputes which cannot be determined by a rental relief assessor? Through the grant, the government aims to offset one month of rent for eligible tenants of industrial and office properties. These measures are intended to establish a baseline position for the handling of tenants’ rental obligations. Service of the notice may be done in person or via registered post or email. Unit A was let to Tenant A for the entire relief period. Why is there a change in the deadlines, and what happens to parties which have already served a written notice?↩, 64. 67. Duration of Relief Type of Relief Qualifying Commercial Properties (e.g. 22. Generally, the Rental Relief covers the first 2 months within the period of April to July 2020 for qualifying commercial properties, and the first month within the period of April to May 2020 for other non-residential properties (e.g. How does MinLaw plan to address such potential situations?↩. b) Additional Rental Relief for SME and NPO tenants (supported by landlords/ property owners): Eligible SME and NPO tenant-occupiers who have seen a 35% or more drop in their average monthly gross income due to COVID-19 will receive up to an additional 2 months’ waiver of rent for qualifying commercial properties, and up to an additional 1 month’s waiver of rent for other non-residential … What are the eligibility criteria for a landlord to qualify for a halving of the Additional Rental Relief?↩. Generally, the rental waivers are to be borne by the landlord of the eligible tenant during the relief period. Rental relief assessors cannot make a determination on disputes over the following matters: Disputes over the type of property: The quantum of rental waivers are based on the approved and actual use of the property. Why has the Government decided to implement this rental relief framework? After an application is made, the landlord and the tenant occupier may be asked to submit additional information or documents, or attend a hearing, either virtually or in person. The Government announced on 26 May 2020 as part of the Fortitude Budget, a Government cash grant to qualifying property owners that help support rental relief for Small and Medium Enterprises (SMEs) and specified Non-Profit Organisations (NPOs) tenant-occupiers of prescribed properties. We encourage all landlords and tenant-occupiers to strictly adhere to the prescribed timeline to provide the required documents and/or make an application to the assessors to have a dispute determined. If the property was vacant for the entire rental relief period (i.e. 49. In such a case, and depending on when the tenant-occupier commenced business, the tenant-occupier should provide its unaudited balance-sheet, profit and loss statement and cash flow statement from the date of commencement of the business (at the prescribed property or any other place), supported by a statutory declaration by the tenant or (if the tenant is an entity) a relevant officer of the tenant. Where a property owner has already passed on the Property Tax Rebate to the tenant on or before 31 Jul 2020, the property owner will be treated as also having satisfied its obligation to provide rental waiver under the Rental Relief Framework for the amount of Property Tax Rebate passed on (on or before 31 Jul 2020), and would only have to provide rental waivers on the remaining sum due under the Rental Relief Framework. If there is only 1 eligible tenant-occupier during the rental relief period, the rental relief will apply to the period during which the tenancy subsists. industrial and office properties) will receive up to 1 months’ waiver of their rent. The rental relief framework seeks to help affected SMEs, and specified non-profit organisations (“NPOs”) with their cash flow by providing for the fair handling of their accumulated rental obligations, and a fair sharing of economic hardship due to the impact of COVID-19 among the Government, landlords and tenants. The Rental Relief covers 2 months within the period of April to July 2020 for qualifying commercial properties, and 1 month within the period of April to May 2020 for other non-residential properties (e.g. If a potential applicant has already commenced court / arbitration proceedings in relation to a dispute on the actual amount of rent under the lease agreement / the actual component of the formula used to compute the prescribed amount of rent that is to be waived, can the applicant still seek a determination by a rental relief assessor? Property owners are required to serve a copy of the notice of cash grant within 4 working days after they receive the hard copy notice of cash grant from IRAS. How many months of rental relief can an eligible SME or NPO tenant (including sub-tenants, licensees and sub-licensees) obtain? Concessions for Collective Sale Procedures, Overview - Coverage of relief and eligibility criteria↩. Under the Rental Relief Framework: • eligible SMEs and NPOs who are tenant-occupiers (referred to as “tenant” in this FRB) will benefit from the Rental Relief and Additional Rental Relief (“Rental Reliefs”) as stated in Table 1 on the next page What documents must a landlord submit to prove his eligibility? If the landlord meets the grounds of financial hardship above, the rental relief assessor may halve the amount of Additional Rental Relief to be borne by the landlord, i.e. What can a landlord do if his tenant fails to meet the timeline of 5 working days to provide documents to prove his eligibility for rental relief? When can they expect the notice to arrive?↩, The notices are available for qualifying property owners to view on IRAS’ myTax Portal, and will also be sent via hard copy to property owners. With the new Rental Relief Framework, are property owners still required to pass on the Property Tax Rebate for Year 2020? In the case where tenants have already paid rent for those months for which rent is waived (i.e. If the eligible tenant-occupier rents the property through an intermediary landlord, all intermediary landlords along the chain will also receive rental waivers in respect of that eligible tenant-occupier for the corresponding period from their immediate landlords, regardless of whether the intermediary landlords meet the eligibility criteria. What can a landlord do if he is unable to afford a rental waiver? 55. Rental Relief Framework 1. If the approved and actual use of the property is different, please inform IRAS to review the assessment of the property and to grant the corresponding Property Tax Rebate and cash grant. The full list of documents that can be requested from the tenant-occupier can be found in the Seventh Schedule of the COVID-19 (Temporary Measures) (Rental and Related Measures) Regulations 2020 (“Regulations”). For example, in cases where landlords have earlier provided assistance to their tenants or reached an agreement to provide assistance to their tenants, in the form of monetary payments or reduction of payments due under the lease agreement, these can be offset from the landlords’ rental waiver obligations. Will the Government absorb this?↩, 54. How can I contact the Registry of the Rental Relief Assessors? What is the definition of a “specified arts and culture society”?↩. What can a landlord do if he is not satisfied that his tenant is eligible for rental relief, or if his tenant refuses to submit the required documents to prove his eligibility? How can landlords reconcile these obligations? 16. If rent has already been paid, tenants can either apply the rental waivers to the next immediate month(s) of rent, or if this is not possible, get a refund from their landlords. Can the rental waivers be offset by any waivers or other forms of assistance that a landlord had provided to his tenant prior to the implementation of the Act? b) any undertaking to provide any payment or deduction of any amount due under the lease agreement before the date the notice of cash grant is issued If a landlord of a qualifying commercial property has two eligible tenant-occupiers during the period of rental relief – Tenant A (from 1 Jan to 31 May 2020), and Tenant B (from 1 Jun to 31 July 2020), Tenant A will qualify for 1 month of Rental Relief for the month of April 2020, and 1 month of Additional Rental Relief for the month of May 2020. contribution to the sinking fund and management fund of a property) can be excluded from the rental waivers as these are contributions towards the maintenance and upkeep of the property. How can tenants ensure that they will receive the rental waivers? 1. Please refer to Regulation 14 of the COVID-19 (Temporary Measures) (Rental and Related Measures) Regulations 2020 for further details. ↩. If the property ownership changes before IRAS issues the notice of cash grant, will the previous or new owner receive the notice? an intermediary landlord, must also serve a copy of the notice on its tenant within four working days of receiving the notice from the property owner, and provide the necessary rental waivers. If the lease commenced in 2018 or earlier, and the landlord was required to file an income tax return in YA2019, the period will be YA2019. Please see what property owners need to do for each scenario below: a) Where the sum of Property Tax Rebate and Government cash grant is less than the 2 or 1 month(s) Rental Relief owners are obliged to give, owners are required to top up the difference. c) Starting or continuing court or insolvency proceedings. annual revenue more than $100 million for the relevant period, lease entered into after 25 March 2020, etc). There is no GST applicable on the rent that is waived. Those who need to access additional credit to meet their immediate cashflow needs can either apply for mortgage equity withdrawal loans, or loans under ESG’s Temporary Bridging Loan Programme or Working Capital Loan Scheme. Registered or exempt charities (as provided in the Charities Act); Are individual tenants of prescribed properties eligible for rental waivers under the Rental Relief Framework?↩, What landlords and tenants can expect and should do↩. For SMEs: Where the tenant-occupier is a company/entity incorporated in Singapore in the period between 1 April 2020 to 31 May 2020, the Singapore group of entities’ aggregate revenue cannot be more than S$100 million for the Financial Year … 65. What can a tenant do if his landlord insists on taking enforcement action for non-payment of rent, notwithstanding the moratorium on enforcement action?↩, Confirmation of eligibility and dispute resolution↩. What is the process for assessment – how long will it take? In this example, Owner A is required to inform IRAS that Unit C was vacant for the entire relief period and IRAS would recover the cash grant attributable to Unit C. 40. What should tenants do if they believe they are eligible for the rental relief but have yet to receive IRAS’ notice of cash grant from their landlord? 14. Such a request should only be necessary in situations where the landlord is unsure of their tenant’s eligibility. What if the timeline is missed? Scenario 1: Owner A rents the shop to an eligible tenant at $5,200 per month (excluding maintenance fees and service charges) during the relief period 1 April to 31 May 2020. Yes, individuals who operate their businesses in the rented property and meet the eligibility criteria will be entitled to the rental waivers under the Rental Relief Framework. “Other SME tenants in industrial and office properties will also be given some relief. An application for a determination on the matters listed in section 19M(4) may not be made if a judgment of a court or arbitral award has already been given or made in relation to the matter in question. However the rental waiver covers the period of April to July 2020 for qualifying commercial properties and April to May 2020 for other non-residential properties. There are many landlords and tenants who may have come to an agreement on the rental waivers under the rental relief framework, and the expansion of powers of the rental relief assessors is potentially disruptive as it may result in fresh disputes. Will intermediary landlords also receive rental waivers if their tenant is an eligible tenant-occupier? Will he be required to absorb the difference in granting the rental waivers? Can this be used to offset the rental waivers to be provided to a subsequent tenant which is eligible for the rental waivers? Are landlords allowed to effect their rental waiver through instalments or in part, e.g. Owner A can retain the full cash grant amount of $4,000. 29. 16. Alternatively, you may also have a right to pursue damages against the landlord for wrongfully terminating the lease or licence. What are the grounds for which a landlord or tenant can submit an application for assessment? If the property was vacant for only part of the rental relief period, and the remaining period was occupied for business use, property owners do not need to inform IRAS and they can retain the Government cash grant.
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