The Monetary Authority of Singapore (MAS), the Ministry of Finance (MOF), Enterprise Singapore (ESG), and the Inland Revenue Authority of Singapore (IRAS) announced a support package on 3 June 2020 in a bid to provide additional support for landlords affected by COVID-19.
Landlords who are Individuals
Landlords who are individuals can defer both principal and interest repayment up to 31 December 2020. This is subject to them being (1) current in their loan repayments as at 1 February 2020, and (2) required to provide their tenants rental waivers or payment rescheduling or being granted a reduction in rental waivers on the grounds of financial hardship.
Additionally, they would also be able to extend the loan tenure by up to the corresponding deferment period.
These benefits should be weighed against the eventual higher overall interest costs. Interested landlords can opt-in to benefit from the enhanced relief measures by providing their bank and finance company the required electronic documents1 once IRAS starts issuing the notice of cash grant in July 2020.
Landlords who are Small and Medium Enterprises (SMEs)
Landlords who are SMEs can apply to defer principal payments on their commercial and industrial property loans. They can also apply for loans under ESG’s Temporary Bridging Loan Programme or Working Capital Loan Scheme.
Landlords who are Large Corporate Entities
Landlords who are large corporate entities can be confident that banks would not automatically enforce loan covenant breaches, but would address such breaches given the surrounding circumstances (including the constrained imposed by the COVID-19 Amendment bill).
For landlords who are real estate investment trusts listed on the Singapore Exchange (S-REITs), MOF and IRAS will provide a further extension of time for distribution of their taxable income derived in FY2020 and FY2021 to qualify for tax transparency treatment, where a S-REIT is not taxed on its income that is distributed to its unitholders. Further details will be provided by IRAS by the end of June 2020.
Should you need assistance, please contact:
RHT Compliance Solutions
RHT Compliance Solutions is a premier Compliance Service Advisory firm based in Singapore.
Our team comprises experienced and certified professionals with extensive regulatory, compliance and risk management experience from Singapore, Indonesia, Hong Kong and the broader region. The team is well equipped to provide clients with intelligent, risk-focused and cost-effective solutions.
Full text can be found here.
1 a copy of IRAS’ notice of cash grant, the relevant tenancy/lease agreements; and a declaration of the relief to be provided to their tenants
For further information, contact:
RHT Compliance Solutions Pte Ltd
1 Paya Lebar Link #06-08
PLQ 2 Paya Lebar Quarter