Qualifying Period for Special Tax Deduction for Reduction of Rent Extended

Effective 1 January 2022, the qualifying period for the special deduction from income tax granted to a landlord who grants a reduction of rental of not less than 30% of the rate of the monthly rental under an existing tenancy agreement for a business premises to a tenant which is a small and medium enterprise under the Income Tax (Special Deduction for Reduction of Rental to a Small and Medium Enterprise) Rules 2021 (“P.U.(A) 353/2021”) will be extended to June 2022 pursuant to the Income Tax (Special Deduction for Reduction of Rental to a Small and Medium Enterprise) (Amendment) Rules 2021 [P.U.(A) 479/2021].
 
Similarly, effective 1 January 2022, the qualifying period for the special deduction from income tax granted to a landlord who grants a reduction of rental of not less than 30% of the rate of the monthly rental under an existing tenancy agreement for a business premises to a tenant which is not a small and medium enterprise under the Income Tax (Special Deduction for Reduction of Rental to a Tenant Other Than a Small and Medium Enterprise) Rules 2021 (“P.U.(A) 354/2021”) will be extended to June 2022 pursuant to the Income Tax (Special Deduction for Reduction of Rental to a Tenant Other Than a Small and Medium Enterprise) (Amendment) Rules 2021 [P.U.(A) 480/2021].
 
Our Alert on P.U.(A) 353/2021 and P.U.(A) 354/2021 can be read here.
 
Comments
 
It is hoped that the extension of the qualifying period for tax deductions under P.U.(A) 353/2021 and P.U.(A) 354/2021 to June 2022 will continue to encourage landlords to grant a minimum of 30% reduction in monthly rental to alleviate the financial hardship faced by tenants of business premises as the country continues to recover from the economic downturn caused by the Covid-19 pandemic.
 
Alert prepared by Desmond Liew (Senior Associate) of the Tax Practice and Tan Wei Liang (Associate) of the Corporate Practice of Skrine

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.