Now you can enjoy lower tax rates when you purchase a brand new piece of equipment.
The Investment Allowance Scheme (IAS) administered by BCA for the construction industry was introduced in 1982. IAS helps to accelerate the pace of mechanization through tax incentives. It aims at encouraging capital investment in technologically advanced construction equipment. So, firms investing in modern technologies to upgrade their capability and increase productivity and quality would be able to enjoy a tax rebate of the approved fixed capital expenditure.
Under the scheme, expenditure incurred by Singapore-registered companies on new construction related equipment is eligible for investment allowance at a support level of 50%. The equipment must bring about at least 20% improvement to the project or work trade.
Evaluation Criteria:
- Firms are eligible for consideration for allowance support of 50% of theapproved capital expenditure based on the approved value or purchasedprice, whichever is the lower.
- Eligibility of support will be subjected to the following conditions:
- i) The type of technology the equipment/machinery will introduce. Theequipment must represent a new technology as compared to the currentnorm. A list of supportable equipment is listed in Annex A
- ii) The contribution of the equipment/machinery to increasing project orcompany productivity. The equipment must bring about at least 20%improvement to the project or work trade.
- iii) The proposed project where the equipment/machinery or tool will beutilised must fall in at least one of the following categories:• Construction IT;• Buildability; and• Miscellaneous such as quality, environment and safety on a case-by-case basis
Case Study:
To learn how some builders make use of modern construction technologies supported by the Investment Allowance Scheme to improve performance at construction sites, click here.
Queries & Application Details
- Application Form for Investment Allowance SchemeGuidelines
- Guidelines for Investment Allowance Scheme
Interested companies can discuss with BCA on the potential improvement to their work and get support under IAS. Please contact:
Productivity Development (Mechanisation) Department
Building and Construction Authority
5 Maxwell Road #12-00, Tower Block, MND Complex
Singapore 069110
Tel: 6325 7720 or DID: 6325 5105 / 6325 5067
Fax: 6223 6381
Email: patrick_phang@bca.gov.sg or tan mui kheng@bca.gov.sg
