Subletting Quantum
The maximum Gross Floor Area (GFA) that you may sublet is 50%. This cap does not apply to the following categories of subtenants:
i) Your wholly-owned subsidiary; and
ii) Company or joint venture which you have a majority shareholding of at least 51%.
Fees and Charges
For Lessees or Tenants on Land Rental Scheme
If you are currently paying land rent or have paid upfront premium for your premises, your subletting fee is calculated as follows:
Subletting fee per month
= {30% x (JTC’s land rental rate per annum) x (Sublet area / Total GFA) x (Land area)} / 12
Click here to view JTC’s land rental rate.
For All Other Lessees and Tenants
The calculation below is applicable to companies which do not pay land rent. This refers to lessees or tenants of high-rise industrial facilities, such as flatted factories.
Subletting fee per month
= (3% x Rent charged by lessee or tenant to subtenant) / 12
Concession for Common Shareholders
You will be given a concession if there is a shareholding relationship* between you and your subtenant.
* Affiliation merely with common individual directors or shareholders will not entitle you to the concession.
Subletting fee per month (after concession)
= {Subletting fee (before concession) x (100% - Percentage of shareholding relationship between lessee or tenant and their subtenant)} / 12
If the subtenant is wholly-owned by the lessee or tenant or vice versa or the percentage of shareholding relationship between the lessee / tenant and subtenant is at least 51%, the subletting fee will be waived. You only need to make a one-time administrative fee prescribed by JTC of up to $500 (subject to GST at the prevailing rate).
In addition, you are required to provide proof that the shareholding remains unchanged every three years. If the shareholding changes, you are required to inform JTC and you will need to pay the subletting fee if your shareholding falls below 51%.
Incentive - Discount on Subletting Fee
If you submit an application to JTC and obtain JTC's approval before commencement of subletting and you pay the subletting fee no later than 14 days from the commencement date, you will be given a discount of 50% off the subletting fee. The maximum discount is $3,000 per annum per subletting. You are required to obtain clearance from the Central Building Plans Unit of the National Environment Agency, if applicable, before the commencement of subletting.
If the subletting period is less than a year, the maximum discount of $3,000 per annum will be proportionately reduced. However, this discount does not apply when you renew your subletting.
Minimum Subletting Fee
The subletting fee payable (after discount, if any) will be subject to a minimum of $500 per annum (subject to GST at the prevailing rate). The minimum sum of $500 will be collected upfront on an annual basis.
Interest Payment
If you submit an application to JTC and / or obtain JTC's approval only after the subletting has commenced or after the start of the renewed term of subletting, you will have to pay interest* at 8% per annum on the subletting fee from the commencement date of the subletting.
Interest will also be charged when lessees or tenants do not pay within the stipulated period.
Additional Fee - Unauthorised Subletting
Unauthorised subletting is not allowed on JTC's premises. However, if JTC allows you to regularise the subletting, you will have to pay:
i) Subletting fee based on the formula shown above.
ii) An interest * of 8% per annum and an additional subletting charge equivalent to 50% of the subletting fee from the start of the
unauthorised subletting detected by JTC to the date on which JTC receives the subletting application. The additional subletting
charge and the interest are subject to a minimum of $5,000.
* Interest rate is subject to review from time to time.
Under-declaration of Rental Charged
If you have under-declared the rent you collected from the subtenant, you will have to pay:
i) The difference of subletting fee based on the actual rent and the declared rent plus interest at 8% per annum.
ii) An additional subletting charge equivalent to 50% of the subletting fee based on the difference between the actual rent and the
declared rent from the date of commencement of subletting to the date of detection.
The interest plus additional subletting charge will also be subject to a minimum of $5,000.
Payment Mode
You will be advised in our letter to you on the amount and term of subletting fee to be paid for the entire subletting period. The subletting fee will be paid together with your monthly rent and will be deducted through Interbank GIRO (IBG) if you are currently paying the monthly rent by IBG. However, for the first time payment, you can indicate if you would like to make payment via IBG or a separate cheque payment.
Refund of Subletting Fee
You can request for a refund if you have paid your subletting fee upfront and you terminate your subletting prematurely or if you did not proceed with the proposed subletting.
You can help to expedite the process by informing us at least 14 days in advance of your decision to terminate the subletting. We will arrange for a site inspection to confirm the termination. A refund of subletting fee will be authorised for the unexpired period.
If the monthly expended subletting fee is greater than the minimum subletting fee of $500 per annum (subject to the GST at the prevailing rate), JTC will retain the minimum subletting fee and refund the balance for the unexpired period.
If you have already terminated your subletting prior to informing JTC, the date of effective termination will be taken from the date that JTC had received your application for termination of subletting. Any refund of subletting fees will be based on this effective termination date.
No further refund will be made if only an administrative fee or minimum subletting fee has been paid for the subletting application.