19A.—(1) Despite section 19, where a person carrying on a trade, profession or business incurs capital expenditure on the provision of machinery or plant for the purposes of that trade, profession or business, there is to be made to the person, on due claim for any year of assessment and in lieu of the allowances provided by section 19, an annual allowance of 331/3% in respect of the capital expenditure incurred.| (1A) Any annual allowance under this section in respect of any asset for any year of assessment must not exceed the amount of the capital expenditure of the asset remaining unallowed as at the beginning of the basis period for that year of assessment. |
(1B) Despite subsection (1), where a person carrying on a trade, profession or business incurs, during the basis period relating to the year of assessment 2010 or 2011, capital expenditure on the provision of machinery or plant for the purposes of that trade, profession or business, the person may, in lieu of the allowances provided by subsection (1) or section 19, elect to be entitled for any 2 years of assessment to the following:| (a) | for the year of assessment relating to the basis period in which the capital expenditure was incurred or any subsequent year of assessment (called in this subsection the first year), an allowance of 75% in respect of the capital expenditure incurred; | | (b) | for any year of assessment subsequent to the first year, an allowance of 25% in respect of the capital expenditure incurred. |
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| (1C) Where a person carrying on a trade, profession or business enters into a hire‑purchase agreement during the basis period relating to the year of assessment 2010 or 2011 in respect of machinery or plant provided for the purposes of that trade, profession or business, subsection (1B) applies to each instalment paid by that person under that hire‑purchase agreement, whether the instalment is paid during or after the basis period relating to the year of assessment 2010 or 2011. |
| (1D) An election made by a person under subsection (1B) is irrevocable. |
(1E) Despite subsection (1), where a person carrying on a trade, profession or business incurs, during the basis period for the year of assessment 2021, 2022 or 2024, capital expenditure on the provision of machinery or plant for the purposes of that trade, profession or business, the person may, in lieu of the allowances under subsection (1) or section 19, elect to be entitled to the following:| (a) | for the year of assessment relating to the basis period in which the capital expenditure is incurred — an annual allowance of 75% in respect of the capital expenditure incurred; | | (b) | for the year of assessment immediately following the year of assessment mentioned in paragraph (a) — an annual allowance of 25% in respect of the capital expenditure incurred. [41/2020; 27/2021] [Act 30 of 2023 wef 30/10/2023] |
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| (1F) The election in subsection (1E) must be made at the time of lodgment of the person’s return of income for the year of assessment relating to the basis period in which the capital expenditure is incurred, and such election is irrevocable. [41/2020; 27/2021] |
| (1G) Where a person carrying on a trade, profession or business enters into a hire‑purchase agreement during the basis period for the year of assessment 2021, 2022 or 2024 in respect of machinery or plant provided for the purposes of that trade, profession or business, subsection (1E) applies, with the necessary modifications, to each instalment paid by the person under the hire‑purchase agreement in a basis period for a year of assessment (whether the firstmentioned year of assessment or a subsequent year of assessment), as it applies to capital expenditure incurred in the basis period for the year of assessment 2021, 2022 or 2024, as the case may be. [27/2021] [Act 30 of 2023 wef 30/10/2023] |
| (2) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has installed a computer or other prescribed automation equipment for the purposes of a trade, business or profession carried on by the person, the person is, in lieu of the allowances provided by subsection (1), (1B) or (1E) or section 19, entitled, if the person so elects, to an allowance of 100% in respect of the capital expenditure incurred on the provision of that computer or automation equipment. [41/2020] |
(2A) Where a person proves to the Comptroller’s satisfaction that the person has incurred capital expenditure during the basis period for the year of assessment 2011 or the year of assessment 2012 on the provision of one or more PIC automation equipment for the purposes of a trade, profession or business carried on by the person, there is allowed on due claim, in respect of all of the person’s trades, professions and businesses, and in addition to the allowance under section 19 or subsection (1), (1B) or (2) (as the case may be), an allowance computed in accordance with the formula| (a) | for the year of assessment 2011, the lower of the following:| (i) | such capital expenditure incurred during the basis period for that year of assessment; | | (ii) | $800,000; and |
| | (b) | for the year of assessment 2012, the lower of the following:| (i) | such capital expenditure incurred during the basis period for that year of assessment; | | (ii) | the balance after deducting from $800,000 the lower of the amounts specified in paragraph (a)(i) and (ii). |
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(2B) Subject to section 37J, where a person proves to the Comptroller’s satisfaction that the person has incurred capital expenditure during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015 on the provision of one or more PIC automation equipment for the purposes of a trade, profession or business carried on by the person, there is allowed on due claim, in respect of all of the person’s trades, professions and businesses and in addition to the allowance under section 19 or subsection (1), (1B) or (2) (as the case may be), an allowance computed in accordance with the formula| (a) | for the year of assessment 2013, the lower of the following:| (i) | such capital expenditure incurred during the basis period for that year of assessment; | | (ii) | $1,200,000; |
| | (b) | for the year of assessment 2014, the lower of the following:| (i) | such capital expenditure incurred during the basis period for that year of assessment; | | (ii) | the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and |
| | (c) | for the year of assessment 2015, the lower of the following:| (i) | such capital expenditure incurred during the basis period for that year of assessment; | | (ii) | the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii), and the lower of the amounts specified in paragraph (b)(i) and (ii). [37/2014] |
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(2BAA) Subject to section 37J, where a person proves to the Comptroller’s satisfaction that the person has incurred capital expenditure during the basis period for the year of assessment 2016, 2017 or 2018 on the provision of one or more PIC automation equipment for the purposes of a trade, profession or business carried on by the person, there is allowed on due claim, in respect of all of the person’s trades, professions and businesses, and in addition to the allowance under section 19 or subsection (1), (1B) or (2) (as the case may be), an allowance computed in accordance with the formula| (a) | for the year of assessment 2016, the lower of the following:| (i) | such capital expenditure incurred during the basis period for that year of assessment; | | (ii) | $1,200,000; |
| | (b) | for the year of assessment 2017, the lower of the following:| (i) | such capital expenditure incurred during the basis period for that year of assessment; | | (ii) | the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and |
| | (c) | for the year of assessment 2018, the lower of the following:| (i) | such capital expenditure incurred during the basis period for that year of assessment; | | (ii) | the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii), and the lower of the amounts specified in paragraph (b)(i) and (ii). [37/2014] |
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| (2BA) In subsection (2A), the amount under paragraph (a)(ii) is substituted with “$400,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2012, and the balance under paragraph (b)(ii) is substituted with “$400,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2011. |
(2BB) In subsection (2B) —| (a) | if the person does not carry on any trade, profession or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; | | (b) | if the person does not carry on any trade, profession or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and | | (c) | to avoid doubt, no deduction may be made from the substituted amount in subsection (2B)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (2B)(a)(i) and (ii) if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2013, and no deduction may be made from the substituted amount in subsection (2B)(c)(ii) of the lower of the amounts specified in subsection (2B)(b)(i) and (ii) if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2014. |
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(2BC) In subsection (2BAA) —| (a) | if the person does not carry on any trade, profession or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; | | (b) | if the person does not carry on any trade, profession or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and | | (c) | to avoid doubt, no deduction may be made from the substituted amount in subsection (2BAA)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (2BAA)(a)(i) and (ii) if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2016, and no deduction may be made from the substituted amount in subsection (2BAA)(c)(ii) of the lower of the amounts specified in subsection (2BAA)(b)(i) and (ii) if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2017. [37/2014] |
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(2C) Where a person proves to the Comptroller’s satisfaction that the person has during or after the basis period for the year of assessment 2011 incurred capital expenditure by way of making one or more instalment payments under a hire‑purchase agreement or agreements to acquire one or more PIC automation equipment for the purposes of a trade, business or profession carried on by the person, that is or are signed during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), and the person makes a claim for an allowance under subsection (2A), (2B) or (2BAA), those subsections apply with the following modifications:| (a) | a reference to the capital expenditure incurred on the provision of one or more PIC automation equipment during the basis period for a year of assessment, being the basis period in which the agreement or agreements is or are signed, is a reference to the aggregate of —| (i) | the price or prices (including capital expenditure incurred on alterations to an existing building incidental to the installation of the equipment but excluding any finance charges) at which the person might have purchased the equipment or all the equipment that is the subject of the hire‑purchase agreement or agreements for cash at the time of the signing of the agreement or agreements; and | | (ii) | the capital expenditure incurred on the provision of any other PIC automation equipment for the purposes of the person’s trade, profession or business during that basis period; |
| | (b) | a reference to the capital expenditure incurred on the provision of one or more PIC automation equipment during the basis period for a year of assessment excludes the amount of any instalment paid or deposit made by the person under that agreement or any of those agreements during the basis period; | | (c) | the allowance referred to in subsection (2A), (2B) or (2BAA) in respect of each equipment that is the subject of a hire‑purchase agreement must be made to the person for the year of assessment in respect of each basis period during which the person paid an instalment or instalments or made a deposit or deposits under the agreement, in the proportion which the total amount of the instalment or instalments paid, and deposit or deposits made, during that basis period for that equipment bears to the total amount of all instalments and deposits under the agreement for that equipment. [37/2014] |
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| (2D) For the purposes of subsections (2A), (2B) and (2BAA), where an individual carrying on a trade, profession or business through 2 or more firms (excluding partnerships) has incurred capital expenditure during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive) on the provision of one or more PIC automation equipment in respect of such firms for the purposes of his or her trade, profession or business, the allowance that may be allowed to him or her for that expenditure in respect of all of his or her trades, professions and businesses must not exceed the amount computed in accordance with subsection (2A), (2B) or (2BAA) (as the case may be) for that year of assessment. [37/2014] |
| (2E) For the purposes of subsections (2A), (2B) and (2BAA), where a partnership carrying on a trade, profession or business has incurred capital expenditure during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive) on the provision of one or more PIC automation equipment for the purposes of its trade, profession or business, the aggregate of the allowances that may be allowed to all the partners of the partnership for that expenditure in respect of all of the trades, professions and businesses of the partnership must not exceed the amount computed in accordance with subsection (2A), (2B) or (2BAA) (as the case may be) for that year of assessment. [37/2014] |
| (2F) Despite subsections (2A), (2B) and (2BAA), where a person has incurred capital expenditure on the provision of any PIC automation equipment for the purpose of leasing such equipment, no allowance under those subsections may be made to the person in respect of such expenditure. [37/2014] |
(2FA) Despite subsections (2A), (2B) and (2BAA), where the PIC automation equipment in question is not prescribed automation equipment under subsection (2), then the allowances claimed under subsections (2A), (2B) and (2BAA) must be written down in the following manner:| (a) | where the person claiming the allowances elects to claim allowances in respect of such equipment under section 19 —| (i) | one‑fifth of the allowances under subsections (2A), (2B) and (2BAA) must be allowed for the year of assessment for the basis period during which the expenditure is incurred; and | | (ii) | the balance of the allowances under subsections (2A), (2B) and (2BAA) must be written down over the number of years of working life of the equipment as specified in the Sixth Schedule or as elected by the person under section 19(2AB); |
| | (b) | where the person claiming the allowances elects to claim allowances in respect of such equipment under subsection (1) or (1B), the allowances under subsections (2A), (2B) and (2BAA) must be written down over 3 years in the case of subsection (1), or over 2 years in the case of subsection (1B), in the same proportions as those in which the allowances under subsection (1) or (1B) (as the case may be) may be made to the person over that period of years. [37/2014; 41/2020] |
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| (2FB) To avoid doubt, subsection (2FA) does not apply to a website provided for the purposes of a trade, profession or business. [37/2014] |
(2G) Despite subsections (2A), (2B) and (2BAA) —| (a) | where a person who has incurred capital expenditure on the provision of any PIC automation equipment (being also a prescribed automation equipment under subsection (2)) elects to claim allowances in respect of such equipment under section 19 —| (i) | one‑fifth of the allowances claimed under subsections (2A), (2B) and (2BAA) must be allowed for the year of assessment for the basis period during which the expenditure is incurred; and | | (ii) | the balance of the allowances claimed under subsections (2A), (2B) and (2BAA) must be written down over the number of years of working life of the equipment as specified in the Sixth Schedule or as elected by the person under section 19(2AB); |
| | (aa) | where a person who has incurred capital expenditure on the provision of any PIC automation equipment (being also a prescribed automation equipment under subsection (2)) elects to claim allowances in respect of such equipment under subsection (1) or (1B), the allowances claimed under subsections (2A), (2B) and (2BAA) must be written down over 3 years in the case of subsection (1), or over 2 years in the case of subsection (1B), in the same proportions as those in which the allowances under subsection (1) or (1B) (as the case may be) may be made to the person over that period of years; and | | (b) | if the person referred to in paragraph (a) or (aa) sells, transfers or assigns the PIC automation equipment after one year from the provision of such equipment, any allowance in respect of such equipment under subsections (2A), (2B) and (2BAA) remaining unallowed at the time of the sale, transfer or assignment must be allowed to the person for the year of assessment relating to the basis period in which the sale, transfer or assignment occurs. [37/2014; 41/2020] |
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| (2GA) The allowances referred to in subsection (2FA)(a)(i) or (b) or (2G)(a)(i) or (aa) (as the case may be), in respect of any equipment that is the subject of a hire‑purchase agreement, must be made to the person for the year of assessment in respect of each basis period during which the person paid an instalment or instalments or made a deposit or deposits under the agreement, in the proportion which the total amount of the instalment or instalments paid, and deposit or deposits made, during that basis period for the equipment bears to the total amount of all instalments and deposits under the agreement for that equipment. |
(2H) Where any allowance has been made to any person under subsection (2A), (2B) or (2BAA) in respect of any PIC automation equipment and the person sells, transfers, assigns or leases the PIC automation equipment within the period of one year from the provision of such equipment —| (a) | no allowance in respect of such equipment may be made to that person under subsections (2A), (2B) and (2BAA) for the year of assessment relating to the basis period in which the sale, transfer, assignment or lease occurs and for any subsequent year of assessment; and | | (b) | any allowance made under subsection (2A), (2B) or (2BAA) must be brought to charge as if the allowances were not made, and is deemed as income for the year of assessment relating to the basis period in which the sale, transfer, assignment or lease occurs. [37/2014] |
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(2HA) The Minister or such person as the Minister appoints may waive the application of subsection (2H)(b) in the following circumstances:| (a) | the capital expenditure incurred on the provision of other PIC automation equipment acquired in the basis period in which the equipment sold, transferred, assigned or leased was acquired, is more than or equal to the amount that applies to the year of assessment to which the basis period relates; or | | (b) | the Minister or person appointed by the Minister is satisfied that there is a bona fide commercial reason for the sale, transfer, assignment or lease. |
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(2HB) In subsection (2HA), the amount that applies to a year of assessment is the amount set out in —| (a) | for the year of assessment 2011, subsection (2A)(a)(ii); | | (b) | for the year of assessment 2012, subsection (2A)(b)(ii); | | (c) | for the year of assessment 2013, subsection (2B)(a)(ii); | | (d) | for the year of assessment 2014, subsection (2B)(b)(ii); | | (e) | for the year of assessment 2015, subsection (2B)(c)(ii); | | (f) | for the year of assessment 2016, subsection (2BAA)(a)(ii); | | (g) | for the year of assessment 2017, subsection (2BAA)(b)(ii); | | (h) | for the year of assessment 2018, subsection (2BAA)(c)(ii), |
| as modified by subsection (2BA), (2BB) or (2BC), as the case may be. |
[37/2014] |
| (2I) No allowance under subsections (2A), (2B) and (2BAA) may be made to any person in respect of any amount of capital expenditure incurred on the provision of PIC automation equipment for which an investment allowance has been claimed under Part 8 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967. [37/2014] |
| (2IA) [Deleted by Act 39 of 2023 wef 29/12/2023] |
| (2J) No allowance under subsections (2A), (2B) and (2BAA) may be made to any person in respect of any PIC automation equipment for which an allowance under this section or section 19 has been previously made to that person. [37/2014] |
| (2K) No allowance under subsections (2A), (2B) and (2BAA) may be made to any person in respect of any instalment paid by the person under any hire‑purchase agreement to acquire any PIC automation equipment that is signed before the basis period for the year of assessment 2011. [37/2014] |
| (3) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has, for the purposes of a trade, business or profession carried on by the person, installed a generator in any office or factory for the supply of electrical power to that office or factory in the event of a disruption in the normal supply of electrical power, the person is, in lieu of the allowances provided by subsection (1), (1B) or (1E) or section 19, entitled, if the person so elects, to an allowance of 100% in respect of the capital expenditure incurred on the provision of that generator. [41/2020] |
| (4) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has installed a robot for the purposes of a trade, business or profession carried on by the person, the person is, in lieu of the allowances provided by subsection (1), (1B) or (1E) or section 19, entitled, if the person so elects, to an allowance of 100% in respect of the capital expenditure incurred on the provision of that robot. [41/2020] |
| (5) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has installed during the period between 1 January 1996 and 16 February 2021 (both dates inclusive) any efficient pollution control equipment or device for the purposes of a trade, business or profession carried on by the person, the person is, in lieu of the allowances provided by subsection (1), (1B) or (1E) or section 19, entitled, if the person so elects, to an allowance of 100% in respect of the capital expenditure incurred on the provision of the efficient pollution control equipment or device. [41/2020; 27/2021] |
| (6) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has installed at any time from 1 January 1996 to 31 December 2017 (both dates inclusive) any certified energy‑efficient equipment as a replacement for any other equipment, or any certified energy‑saving equipment, for the purposes of a trade, business or profession carried on by the person, the person is, in lieu of the allowances provided by subsection (1) or (1B) or section 19, entitled, if the person so elects, to an allowance of 100% in respect of the capital expenditure incurred on the provision of the certified energy‑efficient equipment or certified energy‑saving equipment. [39/2017] |
(7) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has, on or after 1 January 1998, installed any new —| (a) | certified low‑decibel machine, equipment or system; | | (b) | certified effective noise control device which is a distinct entity or an accessory of any new or existing machine, equipment or system; or | | (c) | certified effective engineering noise control measure for any existing machine, equipment or process, |
| for the purposes of a trade, business or profession carried on by the person, the person is, in lieu of the allowances provided by subsection (1), (1B) or (1E) or section 19, entitled, if the person so elects, to an allowance of 100% in respect of the capital expenditure incurred on the provision of the certified machine, equipment or system, or the certified effective noise control device or measure. |
[41/2020] |
(8) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has, on or after 1 January 1998, installed any new —| (a) | certified machine, equipment or system which reduces or eliminates exposure to chemical risk; | | (b) | certified effective chemical hazard control device which is a distinct entity or an accessory of any new or existing machine, equipment or process; or | | (c) | certified effective chemical hazard control measure for any existing machine, equipment or process, |
| for the purposes of a trade, business or profession carried on by the person, the person is, in lieu of the allowances provided by subsection (1), (1B) or (1E) or section 19, entitled, if the person so elects, to an allowance of 100% in respect of the capital expenditure incurred on the provision of the certified machine, equipment or system, or the certified effective chemical hazard control device or measure. |
[41/2020] |
| (9) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has, for the purposes of a trade, business or profession carried on by the person, registered any new vehicle as a replacement for an existing vehicle which used diesel oil as fuel and which was registered before 1 January 1991 and deregistered on or after 27 February 1999, the person is, in lieu of the allowances provided by subsection (1) or (1B) or section 19, entitled, if the person so elects, to an allowance of 100% in respect of the capital expenditure incurred on the provision of that new vehicle. |
| (9A) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has, for the purposes of a trade, business or profession carried on by the person, registered during the period from 15 February 2007 to 14 February 2012 (both dates inclusive) any new vehicle which uses diesel oil as fuel, as a replacement for an existing vehicle which used diesel oil as fuel and which was registered on or after 1 January 1991 but before 1 October 2006, the person is, in lieu of the allowances provided by subsection (1) or (1B) or section 19, entitled, if the person so elects, to an allowance of 100% in respect of the capital expenditure incurred on the provision of that new vehicle. [37/2014] |
| (10) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has incurred capital expenditure on the provision of a website for the purposes of a trade, business or profession carried on by the person, the person is entitled to an allowance of 100% in respect of the capital expenditure incurred on the provision of that website, and for this purpose, a website is deemed to be machinery or plant. |
(10A) Despite section 19 and subject to subsection (10B), where a person proves to the Comptroller’s satisfaction that the person has incurred capital expenditure not exceeding $5,000 on the provision of any item of machinery or plant for the purposes of a trade, profession or business carried on by the person, the person is, in lieu of the allowances provided by subsection (1), (1B) or (1E) or section 19, entitled, if the person so elects, to an allowance of —| (a) | 100% in respect of that capital expenditure; or | | (b) | where allowances have been made under subsection (1), (1B) or (1E) or section 19 for any previous year of assessment under subsection (10B), the amount of that capital expenditure still unallowed. [41/2020] |
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| (10B) The aggregate amount of allowances claimed by any person under subsection (10A) for any year of assessment must not exceed $30,000; and allowances may be made under subsection (1), (1B) or (1E) or section 19 in respect of any capital expenditure still unallowed. [41/2020] |
| (10C) No allowance may be made under subsection (10A) in respect of any item of machinery or plant which is acquired under a hire‑purchase agreement and the original cost of that item of machinery or plant exceeds $5,000. |
| (11) Any claim by a person for allowances in respect of any machinery or plant under this section for any year of assessment is not to be disallowed by reason only that the person has not in use the machinery or plant at the end of the basis period for that year of assessment. |
| (12) Any claim for allowances under this section must be made at the time of lodgment of the return of income for the relevant years of assessment or within such further time as the Comptroller may allow. |
| (13) Where any allowance has been claimed and allowed under this section for any year of assessment, no allowances may be made in any subsequent year of assessment under section 19 in respect of such expenditure. |
(13A) Where the tax relief period of a person to whom a certificate has been issued under Part 2 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 expires in any basis period ending on or after 1 January 1992 and the person has —| (a) | at the end of the basis period immediately following that basis period, in use machinery or plant in respect of which capital allowances have been made under section 19; and | | (b) | before the end of the year of assessment which relates to the basis period referred to in paragraph (a), so elected, |
| there is to be made to the person for a period of 3 years an annual allowance of 331/3% in respect of the capital expenditure remaining unallowed under section 19 in respect of the machinery or plant as at the end of that basis period. |
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| (13B) [Deleted by Act 32 of 2019] |
| (14) Subject to subsections (10A) and (13A), where any allowance has been claimed and allowed under section 19 in respect of any expenditure, no allowances may, except with the approval of the Minister or the Comptroller and subject to such conditions as the Minister or Comptroller may impose, be made in any subsequent year of assessment under this section in respect of the amount of that expenditure remaining unallowed under section 19. [32/2019] |
| (14A) Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where, in the basis period for any year of assessment, the trade, profession or business, for which purpose the machinery or plant is provided, produces income that is exempt from tax as well as income chargeable with tax, the allowances for that year of assessment must be made against each income for that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances. |
| (14B) Subject to subsection (14C), this section applies, with the necessary modifications, to a person carrying on any trade or business who incurs during the basis period for any year of assessment between the year of assessment 2009 and the year of assessment 2028 (both years inclusive) capital expenditure on the provision of machinery or plant for any research and development undertaken by the person directly in Singapore or by a research and development organisation on the person’s behalf in Singapore, even though the machinery or plant is not for the purpose of that trade or business. [37/2014] [Act 30 of 2023 wef 30/10/2023] |
(14C) Section 14C(4) and (5) applies in relation to the allowance for the capital expenditure referred to in subsection (14B) as it applies in relation to the deduction of the expenditure and payments referred to in section 14C(1)(aa), (c) and (f), subject to the following modifications:| (a) | a reference to the amount of the expenditure or payments (after deducting any amount in respect of which an election for a cash payout has been made under section 37G) in section 14C(4) is a reference to the remaining amount of the allowance after deducting the amount of the allowance that corresponds to the capital expenditure in respect of which an election for a cash payout has been made under section 37G; | | (b) | a reference to the specified amount of the expenditure or payments is a reference to an amount computed in accordance with the formula | | is the remaining amount of the allowance after deducting the amount of the allowance that corresponds to the capital expenditure in respect of which an election for a cash payout has been made under section 37G; |
| | | is the rate of tax specified in section 43(1)(a); and |
| | | | | (i) | in a case where the concessionary income derived by the person from the trade or business carried on by the person is subject to tax at a single concessionary rate of tax, that rate; or |
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| | | (ii) | in a case where the concessionary income derived by the person from the trade or business carried on by the person is subject to tax at 2 or more concessionary rates of tax, the higher or highest of those rates; and |
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| | (c) | a reference to “unabsorbed losses” is a reference to “unabsorbed allowances”. |
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(14D) This section applies to a person carrying on any trade or business who appropriates any trading stock of that trade or business for use as machinery or plant for the purpose of any of the person’s trades, professions or businesses in circumstances that give rise to a reasonable inference that the appropriation is permanent, subject to the following modifications:| (a) | a reference to the capital expenditure incurred on the provision of machinery or plant is to the open market value of the trading stock on the date of the appropriation; | | (b) | the capital expenditure is treated as having been incurred on the date of the appropriation of the trading stock. [27/2021] |
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| (14E) In subsection (14D), “open market value” and “trading stock” have the meanings given by section 10J(9). [27/2021] |
(15) In this section —| “automation equipment” means any machinery or plant designed for the automation of functions or services; |
| “certificate of entitlement” means a permit issued or deemed to be issued under section 10A of the Road Traffic Act 1961; |
“certified effective chemical hazard control device” means —| (a) | any local exhaust ventilation system; | | (b) | any fugitive emission control equipment or system; or | | (c) | any dilution ventilation system, |
| which has been certified by any person approved by either the Minister or such person as the Minister may appoint to have satisfied the prescribed criteria; |
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“certified effective chemical hazard control measure” means —| (a) | any enclosed or automated system; or | | (b) | any modification to machine, equipment or process, |
| which has been certified by any person approved by either the Minister or such person as the Minister may appoint to have satisfied the prescribed criteria; |
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“certified effective engineering noise control measure” means —| (a) | any detachable personnel acoustic enclosure; | | (b) | any acoustic barrier or shield; | | (c) | any acoustic absorption device; or | | (d) | any modification to machine, equipment or process, |
| which has been certified by any person approved by either the Minister or such person as the Minister may appoint to have satisfied the prescribed criteria; |
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“certified effective noise control device” means —| (a) | any acoustic enclosure for machine, equipment or process; | | (b) | any acoustic silencer or muffler; | | (c) | any vibration absorption, isolation or damping device; or | | (d) | any active noise control device, |
| which has been certified by any person approved by either the Minister or such person as the Minister may appoint to have satisfied the prescribed criteria; |
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“certified energy‑efficient equipment” means —| (a) | any air‑conditioning system; | | (b) | any boiler; | | (c) | any water pumping system; | | (d) | any washing or dry‑cleaning machine system; | | (e) | any refrigeration system; | | (f) | any lift or escalator; and | | (g) | any instant hot water system, |
| which has been certified by a professional engineer registered under the Professional Engineers Act 1991 to be more energy‑efficient than the equipment which it replaces; |
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“certified energy‑saving equipment” means —| (a) | any solar heating or cooling system; | | (b) | any solar energy collection system; | | (c) | any heat recovery system; | | (d) | any power factor controller; | | (e) | any high efficiency electric motor; | | (f) | any variable speed drive motor control system; | | (g) | any high frequency lighting system; | | (h) | any computerised energy management system; and | | (i) | any other energy‑saving equipment or device, |
| which has been certified by any person approved by either the Minister or such person as the Minister may appoint to be an energy‑saving equipment; |
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“certified low‑decibel machine, equipment or system” means —| (a) | any concrete crusher or splitter; | | (b) | any plastic granulator or crusher; | | (c) | any automatic sawing machine; | | (d) | any metal press or stamping machine; | | (e) | any machine with active noise control feature; or | | (f) | any other machine, equipment or system, |
| which has been certified by any person approved by either the Minister or such person as the Minister may appoint to have satisfied the prescribed criteria; |
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“certified machine, equipment or system which reduces or eliminates exposure to chemical risk” means —| (a) | any water‑based degreasing machine or system; | | (b) | any automated bagging or packing machine or system; | | (c) | any automated degreasing machine or system; or | | (d) | any other machine, equipment or system, |
| which has been certified by any person approved by either the Minister or such person as the Minister may appoint to have satisfied the prescribed criteria; |
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| “computer” means any computer used for automatic data processing and includes any part thereof; |
| “efficient pollution control equipment or device” means any equipment or device for the purposes of preventing, controlling or reducing air pollution or water pollution which satisfies the prescribed criteria; |
“existing vehicle” means any goods vehicle or bus using diesel oil as fuel which —| (a) | is not a vehicle registered under the RU index marks; | | (b) | is deregistered not later than one year before the last day on which a renewal of registration licence can be issued under the Road Traffic Act 1961 in respect of the vehicle; and | | (c) | has, unless the vehicle has been exempted from obtaining a certificate of entitlement, at the date of deregistration of the vehicle —| (i) | at least one year remaining in its certificate of entitlement; or | | (ii) | a certificate of entitlement which can be renewed after its expiry; |
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| “goods vehicle” means any motor vehicle constructed or adapted for use for the carriage of goods; |
“new vehicle” means any new goods vehicle or new bus which —| (a) | is registered within one month before, or within 6 months after, the deregistration of the existing vehicle which uses diesel oil as fuel; and | | (b) | bears an index mark which is the same as the index mark of such existing vehicle, and for this purpose, where the new goods vehicle and such existing vehicle have a maximum laden weight exceeding 3.0 metric tons but not exceeding 3.5 metric tons, the new goods vehicle is deemed to bear an index mark which is the same as that of such existing vehicle; |
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“Productivity and Innovation Credit Scheme automation equipment” or “PIC automation equipment”, in relation to any person, means —| (a) | any automation equipment that is prescribed by the Minister for the purposes of subsections (2A), (2B) and (2BAA) and section 14Q; or | | (b) | any automation equipment which the Minister or a person appointed by the Minister has approved as PIC automation equipment for the firstmentioned person; |
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| “website” means a collection of programmes, data and images which is accessible over the Internet or any network using a browser or any other form of access. [37/2014] |
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| (16) In subsections (2A) to (2G) and (2I), a reference to capital expenditure incurred on the provision of PIC automation equipment excludes any such expenditure to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board. |
| (16A) For the purposes of subsections (2B), (2BAA), (2D) and (2E), each reference to capital expenditure incurred in the basis period for the year of assessment 2014 or a subsequent year of assessment, on the provision of one or more PIC automation equipment for the purposes of a trade, profession or business includes a reference to any capital expenditure incurred on the provision of a website for the purposes of a trade, profession or business. [37/2014] |
(16B) For the purposes of subsections (2F), (2H), (2HA), (2I) and (2J) —| (a) | each reference to capital expenditure incurred on the provision of any PIC automation equipment includes a reference to capital expenditure incurred on the provision of a website; and | | (b) | each reference to a PIC automation equipment includes a reference to a website. [37/2014] [Act 39 of 2023 wef 29/12/2023] |
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| (17) For the purposes of paragraph (b) of the definition of “PIC automation equipment”, the Minister or the person appointed by the Minister may only approve any automation equipment if the Minister or appointed person is satisfied that the equipment fulfils such criteria as may be prescribed by the Minister. |
| (18) Any rules made under paragraph (a) of the definition of “PIC automation equipment”, and any approval given under paragraph (b) of that definition, may be made to have effect for any year of assessment beginning with the year of assessment 2011. |
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