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Lease Management


LAND BETTERMENT CHARGE

With effect from 1 August 2022, a new Land Betterment Charge (LBC) has replaced Differential Premium, Development Charge (DC) and Temporary Development Levy (TDL), which were previously administered by the Singapore Land Authority (SLA) and Urban Redevelopment Authority (URA) respectively. The LBC is a tax on the increase in value of land arising from a chargeable consent (e.g. planning permission) given in relation to a development of any land.

Under the LBC, landowners seeking to develop their sites need not make a separate application to SLA for the payment of LBC once a planning application or plan lodgment for an authorised development has been submitted to URA.  If the proposed development results in an increase in land value, SLA will follow up directly with the taxable person by issuing a Liability Order (LO) stating the LBC payable. Payment must be made to SLA within 1 month from the date of the LO. This will apply to all planning permissions, plan lodgement and variation of restrictive covenants granted on or after 1 August 2022.

The principles for computing LBC follow the previous DP and DC systems, known as the Table of Rates method. LBC will be computed based on the difference between the value of the post-chargeable valuation and pre-chargeable valuation. Post-chargeable valuation is the value derived from the variation of the relevant restrictive covenant, or the proposed use(s) and intensity in URA’s planning permission or plan lodgement. Pre-chargeable valuation is the value derived from the restrictive covenants in the State title or the last authorised/approved development. The historical Master Plans 1958/1980/2003 will continue to be taken into account in the determination of pre-chargeable valuation, where applicable. For more information, please refer to this circular and the attached documents.


For use in determination of pre-chargeable value for safeguarded historical base line (where applicable)

Fixed Rates

Sep 2003 DC Rates


PROCESSING FEE

A fee of $1,100 will be collected for updating the land’s baseline value, and this will be payable together with the LBC when the LO is issued.


OPTION FOR SPOT VALUATION

In cases where there is no suitable or comparable use group for assessment, the Valuation method will apply. Taxable persons may also elect to use the Valuation method, which is irreversible, in lieu of the Table of Rates method by using a prescribed form.

Application for the Election of Valuation Method


RECEIVING A LIABILITY ORDER

Every liability order will include details such as (i) the amount of LBC payable; (ii) the name of the taxable person(s) (and apportionment, if any; and (iii) the methods by which payment for LBC can be made. Upon receipt of a liability order, the LBC payable by a taxable person is due to SLA at the end of one month. Once LBC has been paid in full, the liability order will cease to have effect.


FORMS

Assumption of Liability Notice

A person who wishes to assume liability to pay any LBC for a chargeable consent may inform SLA inform using the following form.

Application for Assumption of Liability


Deferment Determination

A charitable institution using the land for charitable purposes may apply to SLA for a deferment to pay LBC using this form. .

Application for Deferment Determination 


Transfer of Deferred Liability

A taxable person whose liability to pay any LBC is deferred may apply to transfer his deferred liability to another person using this form.

Application for Notice of Transfer of Deferred Liability 


Evidentiary Certificate

An owner or prospective owner of a land may use this form to apply for a certificate for the purpose of determining his liability for LBC.

Application for Evidentiary Certificate

 

RENEWAL OF LEASE

All State leases have specified tenures. Property owners can apply for the renewal of leases, and each application will be considered on its own merits, bearing in mind the Government's long-term plans for the land and in consultation with other public agencies. Please refer to the current Lease Renewal policy. 

You may apply for the renewal of a lease using this online application form. 

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