What are the implications of a Tax Increment Financing scheme in Singapore for my property within the redevelopment area?

Hello. I recently came across your query on Lawzana regarding the implications of a "Tax Increment Financing" (TIF) scheme for your property in a redevelopment area. As a consultant specializing in real estate regulations, I wanted to offer a crucial clarification that may save you significant confusion. Unlike in the US or UK, Singapore does not typically use a "Tax Increment Financing" structure where future tax gains are ring-fenced to pay for current infrastructure. Instead, if your land is in a redevelopment zone, you are likely facing two different mechanisms that function similarly but have distinct rules: Land Betterment Charge (LBC): This is the primary tax Singapore uses to capture value uplift. If your redevelopment increases the plot ratio or changes the land use, you are liable to pay the LBC (which replaced the Development Charge in 2022). This is calculated based on the Table of Rates (revised semi-annually by SLA) or a specific valuation, not on future tax increments. Property Tax via Annual Value (AV): Your future property tax bills will indeed rise, but this is due to the re-assessment of your property's Annual Value (AV) upon completion, not a special TIF levy. Business Improvement Districts (BID): If your property is in a specific commercial precinct (like Singapore River or Tanjong Pagar), you might be subject to a mandatory membership fee for place management, which is the closest equivalent to a "special charge." Why this matters for your wallet: Mistaking LBC for a TIF scheme can lead to incorrect financial projections. You need to know exactly which LBC rates apply to your sector group and if you are eligible for Property Tax Remission during the construction period (which can save you substantial amounts). I can help you calculate the potential LBC liability and project your future tax obligations based on the latest IRAS and URA master plan data. I offer a focused, text-based consultation via WhatsApp for a nominal fee. If you would like to clarify your tax position before proceeding with any redevelopment plans, please feel free to message me. Warm regards,