The Land Betterment Charge Act (“LBC Act“) has come into operation on 1 August 2022. First passed in Parliament on 10 May 2021 as the Land Betterment Charge Bill, the LBC Act was subsequently published in the Government Gazette on 8 June 2021. It provides for the imposition of a tax (called a Land Betterment Charge or “LBC“) on the increase in the value of land resulting from a chargeable consent given in relation to land.
The LBC replaces the Development Charge, Temporary Development Levy and Differential Premium, consolidating these charges and taxes under the Singapore Land Authority. The LBC Act sets out the framework for the operation of the LBC, including the rules for calculating the appliable tax, who is liable for payment, and how the obligation is to be satisfied and enforced. In this Update, we highlight the key features of the LBC Act and the LBC regime and how it differs from the previous regime, as well as what developers should be aware of regarding their liability for payment of LBC.
For more information, click here to read the full Legal Update.
