Land Intensification Allowance (LIA)

In his Budget Statement 2010, the Minister for Finance introduced the Land Intensification Allowance (LIA) incentive, a targeted scheme to promote the intensification of industrial land use towards more land-efficient and higher value-added activities. Enhancements to the LIA were also made in 2014, 2016 and 2017.


An initial allowance at 25% of the qualifying capital expenditure incurred on the construction or renovation/extension of the approved LIA building will be granted in the year of assessment relating to the basis period during which the capital expenditure is incurred. Upon issuance of the TOP for the completed LIA building and where it meets all qualifying criteria, annual allowance at 5% of the qualifying capital expenditure incurred will be granted until total allowance amounts to 100% of qualifying capital  1 April 2020 expenditure.

LIA Applicant is only eligible if conditions can be met at the point of TOP. LIA applicants must comply with all approved conditions (i.e. GPR condition and 80% GFA requirement) upon the completion of their building works and throughout the duration of the LIA incentive. EDB reserves the right to revoke the incentive by recovering initial and/or annual allowances if conditions are not met.

In cases where the completed building or structure fails to meet the relevant GPR benchmark, the initial and/or annual allowances will be recovered through reassessment of preceding tax years.

For any basis period where there are any changes to qualifying user(s) and/or use(s) that count towards the minimum 80% GFA requirement, the applicant shall inform EDB of the change, and the change shall be assessed by EDB according to prevailing criteria and benchmarks at the time of application. If approval is granted by EDB, the taxpayer shall be allowed to continue to claim the LIA under the new qualifying use(s). Otherwise, the annual allowance will not be granted for the year of assessment relating to that basis period. If change is permanent, no further annual allowances will be granted to the taxpayer from the year of assessment relating to the basis period during which the permanent change occurs and the LIA incentive shall be terminated with effect from that year of assessment.

When the approved LIA building is sold at any time when there is still a balance of qualifying capital expenditure remaining to be claimed or after the qualifying capital expenditure has been fully claimed, any balance of the qualifying capital expenditure still remaining will be disregarded and there will not be any balancing adjustment on the seller of the building.

Where the LIA building is transferred to an amalgamated company under a qualifying amalgamation under section 34C of the Income Tax Act (ITA), the annual allowances will be given to the amalgamated company until the remaining qualifying capital expenditure is fully claimed, subject to the amalgamated company meeting the same conditions for the LIA incentive. The taxpayer is required to notify the EDB of the amalgamation.

When there is insufficient income in any year of assessment to absorb the initial or annual allowances, any unutilised LIA can be carried forward to offset against the
taxpayer’s income in future years of assessment, subject to the taxpayer meeting the prevailing conditions for carry forward of unutilised allowances. Any unutilised
allowances can also qualify for carry back under the Carry-Back Relief System or for transfer under the Group Relief System, subject to the taxpayer meeting the prevailing conditions under those systems.


The LIA incentive is available to businesses in manufacturing and logistics sectors which have large land takes and low Gross Plot Ratios (GPR).

Approvals for the incentive to these sectors will be granted by the Economic Development Board (EDB) from 1 July 2010 to 31 December 2025 (both dates inclusive). Applications submitted after 30 Sept 2025 (less than 3 months from the incentive expiry date) will not be considered, unless the incentive is subsequently extended past 31 Dec 2025.

From 8 March 2017, LIA will also support several trades or businesses carried out in an integrated construction and prefabrication hub. This will be administered by the Building and Construction Authority (BCA). For more information, please contact BCA at 1800 342 5222.

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