Investment Allowance Scheme
The Investment Allowance Scheme (IAS) provides tax relief for productive construction equipment. It aims to increase productivity in the construction industry by accelerating the pace of mechanisation.
With the implementation of the Construction Industry Transformation Map (ITM), the IAS will be extended to 2023 to provide continual support for mechanisation.
By tapping on the IAS, applicants will be able to upgrade their capability, increase productivity, and receive tax relief on approved capital expenditure. Expenditure incurred by Singapore-registered companies on new productive construction equipment will be eligible for an investment allowance of 50%.
All Singapore-registered firms are eligible to apply for the allowance.
• The equipment must achieve at least 20% productivity improvement at project level or trade level
• The minimum capital investment is $100,000
• Only equipment which represent the latest and more advanced technology.
• All proposed equipment/machinery to be purchased must be new. Second hand or reconditioned equipment will not be eligible for the allowance
• The titles of the proposed equipment/machinery have to be transferred to the
applicant by purchase. Leasehold or rented equipment will not be eligible for the
• The minimum investment proposal is $100,000 for construction equipment.
• Investment Allowance will not be granted to equipment for which the applicant has obtained financial grants from other Government Departments.
• No purchase of equipment from related companies is allowed
Plant and equipment bought under Hire Purchase Act or those that may enjoy accelerated depreciation under the relevant provisions of the Income Tax Act are also eligible for consideration for the allowance. The allowance, if granted, will be based only on the capital value of the equipment and installation charges.