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Land betterment charge could top US$1.6 billion for Singapore plot sale

Estimates by three local property analysts suggest the levy could exceed S$2 billion, and it would be due when development approval is granted.

Reported · Written up by our desk · Trade & Tariffs

A planned sale of a prime land tract in Singapore by the eldest son of Malaysia’s billionaire king faces a major tax hurdle, with a levy known as a land betterment charge emerging as a sticking point, according to people familiar with the matter cited by SCMP Economy.

The land betterment charge is imposed when Singapore grants planning permission or other approvals that increase land value. The tax bill may run north of S$2 billion, equivalent to about US$1.6 billion, based on estimates by three local property analysts, the report said.

The owner is said to prefer having any buyer cover the cost. The Singapore Land Authority, which administers the tax, said it does not comment on market speculation about landowners’ intentions or potential private transactions.

The tax would be payable by the land owner when development is approved, though owners can nominate one or more other parties to pay, and the timing of any government approval for development remains unclear, SCMP Economy reported.

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