Assignment of leasehold rights may fall outside GST when the lessee completely divests its immovable-property interest.
Notes
GST
GST treatment of leasehold transfers depends on whether the transaction is an original grant, sub-lease, or complete assignment. An original grant of a lease, tenancy, easement or licence to occupy land is classified as a supply of services; qualifying long-term industrial leases may receive the stated exemption for upfront amounts. A complete assignment, where the outgoing lessee transfers the whole residual term, possession, building and associated benefits and retains no reversionary or possessory interest, may constitute transfer of an immovable-property interest rather than a taxable service. Consideration labels are not decisive; the deed, lessor consent, assignee substitution and future rent obligations determine characterisation. Sub-leases or continuing occupation arrangements remain susceptible to GST.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts <\/p>\n
= = = = = = = =<\/p>\n