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.
How do builders benefit
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 investment allowance of 50%.
Who can apply
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.