Massive tax bill clouds sale of Singapore land by Malaysian king's son
A potential multi-billion dollar land sale in Singapore by the son of Malaysia's king is being complicated by a massive land betterment tax. Negotiations are currently stalled as the seller seeks to shift the burden of the estimated S$2 billion tax bill onto the buyer.
Why it matters
The deal represents one of Singapore's largest real estate transactions, and the tax dispute underscores the complexities of high-value international property development.
The tax owned is estimated to be over S$2 billion
A MALAYSIAN royal’s plan to sell a tract of land in the heart of Singapore faces a complication: a tax bill that may exceed US$1 billion.
A levy known as a land betterment charge has emerged as a sticking point in negotiations between some prospective buyers and the current owner, the eldest son of Malaysia’s billionaire king, according to people familiar with the matter.
The owner wants any buyer to foot the bill, the people said, asking not to be identified because the information is private.
The tax, imposed when the government gives planning permission or other approvals that increase the value of land, may run north of S$2 billion, according to estimates by three local property analysts.
It’s a potential stumbling block for what may be one of Singapore’s biggest-ever real estate deals.
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