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Incorporation
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  Accounting & Corporate Tax
  Accounting & Tax Compliance
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< Back To GlossaryAccounting and Bookkeeping

Capital Allowance

Q: What qualifies as plant and machinery?

&lt;p&gt;&lt;span style=&quot;color: oklch(0.3039 0.04 213.68)&quot;&gt;Assets used in trade, not part of premises or furnishings (Section 19/19A)&lt;/span&gt;&lt;/p&gt;

Q: Can I defer capital allowance claims?

&lt;p&gt;&lt;span style=&quot;color: oklch(0.3039 0.04 213.68)&quot;&gt;Yes, except for 2-year write-off which must be claimed when incurred&lt;/span&gt;&lt;/p&gt;

Q: How do startups benefit?

&lt;p&gt;You can carry forward unutilised allowances under loss carry-back relief. Contact us for more information.&lt;/p&gt;

Last Updated 29 Jul 2025

Capital Allowance lets Singapore businesses claim tax relief on qualifying fixed assets’ wear and tear instead of depreciation.

Why is it important for businesses?

It reduces taxable income, improving cash flow and incentivizing investment in plant and machinery.

Examples of Capital Allowance in practice

A coffee roaster claims 100% write-off on new roasting equipment in Year 1.
A logistics company elects 2-year write-off for YA 2024 assets.
A manufacturer schedules 3-year annual allowances for machine tools.

Frequently Asked Questions

What qualifies as plant and machinery?

Assets used in trade, not part of premises or furnishings (Section 19/19A)

Can I defer capital allowance claims?

Yes, except for 2-year write-off which must be claimed when incurred

How do startups benefit?

You can carry forward unutilised allowances under loss carry-back relief. Contact us for more information.

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