On or about 12 July 2019, the Inland Revenue Board of Singapore (IRAS) has published the fourth edition of the e-Tax Guide on GST: Guide for Property Owners and Property Holding Companies. It replaces the third edition published on 1 January 2018.
In this fourth edition, the following revisions were made:
- Amended paragraph 8.3 on leasing business
- New paragraph 8.4 on leasing business
- Inserted Example 3 on furnished residential property
- Amended paragraph 8.25 on furnished residential property
- Amended Example 5 on serviced apartment
- Other editorial changes
The update amends the information regarding GST on letting of property. It now states that along with the business tests, sole-proprietors and partnerships are also considered as a leasing business, if they create three or more leases from the properties owned. It does not matter whether the leases relate to residential or non-residential property.
A sole-proprietor or partnership has to charge and account for GST on the rental of the furniture and fittings of the furnished unit, if it is regarded as carrying on a leasing business and is GST registered for the lease of residential properties.
Source: IRAS website, 12 July 2019