Singapore legislation
Regulation 4
of Housing and Development (Interest and Penalties for Late Payment of Improvement Contributions) Rules
Regulation 4
Interest on late payment
Subregulation 1
No interest under this rule shall be payable by a lessee or owner during the grace period in respect of any improvement contribution, or any part thereof, due from him and in arrears.
Subregulation 2
Subject to paragraph (1), where any improvement contribution or part thereof is in arrears, the Board shall be entitled to impose interest on the lessee or owner for late payment of the amount in arrears, at the following rates:
where he is the lessee or owner of a flat that is not a commercial property —
if he is a citizen of Singapore, the prevailing HDB concessionary interest rate on the first day of each month the improvement contribution or part thereof is in arrears; or
in any other case, the prevailing HDB market interest rate on the first day of each month the improvement contribution or part thereof is in arrears; or
where he is the lessee or owner of a commercial property (irrespective of citizenship), 4.5%-point above the 3‑month compounded SORA for the period in which the improvement contribution or part thereof is in arrears.
Subregulation 3
Such interest shall —
be payable from the first day of the first month immediately following any grace period for that improvement contribution or part thereof until all of the improvement contribution is paid to the Board; and
be calculated on the first day of each month on the improvement contribution or part thereof from time to time outstanding (together with interest) at the end of the immediately preceding month.
Subregulation 4
The prevailing HDB concessionary interest rate and the HDB market interest rate shall be published on the Internet website of the Board.