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.

March 2022 DC Table of Rates

Information on LBC Act

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

Fixed Rates

Sep 2003 DC Rates