Singapore Rental Relief For SMEs including licenses, leases and sub-tenancies for retail, commercial, office and industrial space
Disclaimer: This article produced by BusinessDistrict is aimed at providing our clients general information around the rental relief law and does not constitute legal advice.
The Rental Relief law was passed in Parliament on 5 June 2020. It provides rental relief to help SME tenants who have been affected by COVID-19. This rental relief program supplements the earlier announced property tax rebates, which required non-residential building owners to pass on the tax rebates to tenants by way of rental waivers. This impacts a wide range of non-residential tenancies, including licenses, leases and sub-tenancies for retail, commercial, office and industrial space.With the Rental Relief, tenant-occupiers who are SMEs with ≤$100 million in annual revenue reported in the Year of Assessment 2019 will get 2 months’ rental waiver if they are in qualifying commercial properties (e.g. F&B, or retail shops), and 1 month’s rental waiver if they are in industrial/office properties.
With the Rental Relief, tenant-occupiers who are SMEs with ≤$100 million in annual revenue reported in the Year of Assessment 2019 will get 2 months’ rental waiver if they are in qualifying commercial properties (e.g. F&B, or retail shops), and 1 month’s rental waiver if they are in industrial/office properties.
In addition, the Additional Rental Relief will apply to tenant-occupiers who (a) have suffered ≥ 35% drop in average monthly revenue on an outlet level from April to May 2020, compared to April to May 2019; and (b) are SMEs at the group level (≤$100 million revenue based on the latest available accounts). The Additional Rental Relief provides 2 months’ rental waiver for qualifying commercial properties and 1 month’s rental waiver for industrial/office properties. This may be halved if the landlord is suffering financial hardship.
Infographic: Support for Tenants and Landlords
Infographic: Rental Relief Framework
More information on rental relief can be found here:
- FAQs for Rental Relief Framework for SMEs
- Rental Relief Framework for SMEs
- Tenants who are unable to pay their rent due to COVID-19 and require protection from legal or enforcement proceedings by their landlords may serve a Notification for Relief (“NFR”). After the NFR is served, the landlord may not evict the tenant or terminate the lease for the prescribed period (up until 19 October 2020).
- Types of contracts covered under the Act -Temporary Relief from Inability to Perform Contractual Obligations
