| Q1: |
What
is Development Charge? |
|
Development Charge is a "levy" that is
imposed when planning permission is granted to carry out development
on a site for a more valuable zoning use or in excess of the existing
plot ratio i.e. higher density.
|
| Q2: |
How
would I know if I have to pay Development Charge or Differential Premium?
|
|
You would have to pay Development Charge
if you want to enhance the value of freehold land. Differential Premium
is payable when you want to enhance the value of leasehold land.
|
| Q3: |
Who
pays the Development Charge? |
|
The owner of the land or the applicant
for the planning permission is liable for payment.
|
| Q4: |
How
is the Development Charge calculated? |
| It may be calculated
in two ways: |
| a) |
Fixed rate Development
Charge- the amount payable is computed at the date of provisional
permission by reference to the rates for different land use groups
according to geographical areas (Development Charge Table): |
| Development Charge =
Development Ceiling - Development Baseline |
| |
Development Ceiling
is the proposed total GFA multiply by the Rate in the appropriate
use group under the appropriate sector in which the development
is located. |
| |
|
Development Baseline is
the highest value of the following:
Rates in the appropriate use
group under the appropriate sector in which the development
is located multiply by:
(a) for which the land was allocated
in the 1958 Master Plan;
(b) for which the land was allocated
in the 1980 Master Plan;
(c) any development of that land
which -
|
| |
|
(i) development charge, where
payable, has been paid
|
| |
|
(ii) no development charge
is payable by reason of nay exemption under the Planning Act;
and
|
| |
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(iii) development charge is
not payable under the written law in force when WP was granted
|
| |
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(iv) last approved GFA (for
cases approved before 1 Sep 1989, the last approved GFA for
certain category of cases e.g. commercial or mixed use development
has to be re-computed based on the 1993 GFA definition)
|
| b) |
Case-by-case valuation |
| |
|
| Q5:
|
How
often is the Development Charge Table reviewed? |
|
It is reviewed every six
months, in March and September of each year.
|
| Q6: |
Are
there any alternatives available to me if I am dissatisfied with the Development
Charge determined by the Fixed rate method? |
|
Yes. You may request the Competent Authority
to determine the Development Charge on a case by case valuation of the
land value enhancement. However, this must be done within 14 days of
the Interim Order being served on you.
|
| Q7: |
Can
I appeal against the Development Charge determined? |
|
Yes, you can do so if the DC was determined
using the case-by-case valuation approach. You cannot appeal if the
fixed rate system was used to determine DC.
|
| Q8: |
If
I have opted for the case-by-case valuation system. However, I am still
unhappy with the charges I have to pay, can I request for a revision using
the fixed rate system? |
|
No. Once you have chosen the case-by-case
basis to determine the Development Charge, you cannot revert to the
fixed rate system. However, you may abort the first application for
planning permission, and reapply for a new planning permission.
|
| Q9: |
What
types of development may be exempted from payment of Development Charge?
|
The following forms
of development or property projects are exempted from payment of
Development Charge:
|
| a) |
Buildings under conservation |
| b) |
Dwelling houses within
a landed housing development that cannot be subdivided |
| c) |
Conversion of "industrial"
land in Hillview and Bukit Timah areas for residential development
|
| d) |
Erection or extention
to any single detached, semi-detached, linked or terrace house |
| e) |
Conversion from net
plot ratio as per 1958 and 1985 Master Plan to gross plot ratio
|
| f) |
Land sold by the government
or by a statutory board |
|
| Q10: |
What
is the material date for Development Change computation? |
|
The material date is either Provisional
Permission (PP) date; or 2nd or subsequent PP entention date - by Planning
(Development Charges) (Amendment) Rules 1996.
|
|
For
example, the PP date for project X is Mar 1999, the first extention
date is Sep 1999, the second extention date is Oct 2000, the result
is:
|
| 1
st Extention |
:
Yr' 99 DC rates applies |
| 2
nd Extention |
:
Yr' Sep 00 DC rates applies |
| |
| Q11: |
What
is Differential Premium? |
| It is a "levy"
payable by a lessee of State land who wishes to top up his lease or remove
any restrictive covenant imposed
by the lease. |
| Q12: |
How
is Differential Premium calculated? |
|
It is computed as the difference between
the "before" value and "after" value of the site.
For example, to top-up a lease from 80
years (remaining period) to 99 years would mean that the 80-year lease
is the "before value" and the 99-year lease is the "after value".
|
| Q13: |
What
are the statutory documents related to development charges? |
|
They are: The Planning Act (Cap 232,
1998 Ed) (Sections 35-40) and The Planning (Development Charge) Rules
2000.
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