Question 1

What is Section 19A accelerated write-off?

Accepted Answer

Section 19A allows businesses to write off the cost of qualifying plant and machinery over three years on a straight-line basis (one-third each year). This accelerated capital allowance applies to most assets used for business purposes and provides faster tax relief than the standard Section 19 allowance based on working life. For qualifying equipment like computers, robots, and prescribed automation assets, a 100% write-off in the year of acquisition is also available under Section 19A.

Question 2

What is the 2-year accelerated write-off option (75%/25%)?

Accepted Answer

Singapore offered an optional accelerated 2-year write-off for plant and machinery, with 75% of the cost written off in the first year and 25% in the second year. This was available for assets acquired in YA 2021, YA 2022, and extended to YA 2024 via Budget 2023 (with the 25% balance flowing into YA 2025). This option is irrevocable once elected, and no deferral of claims is allowed. As of Budget 2026, no further extension of the 2-year option has been announced.

Question 3

How does Section 19 normal capital allowance work?

Accepted Answer

Section 19 spreads the capital allowance over the prescribed working life of the asset as determined by IRAS (per the Sixth Schedule of the Income Tax Act 1947). From YA 2023, businesses can choose a write-off period of 6 or 12 years for assets with a prescribed working life of 12 years or less. The annual deduction is calculated by dividing the asset cost by the chosen period.

Question 4

What did Singapore Budget 2026 announce for businesses?

Accepted Answer

Singapore Budget 2026 (announced 12 February 2026) introduced a 40% Corporate Income Tax (CIT) Rebate for YA 2026, capped at S$30,000, with a minimum S$1,500 cash grant for active firms. The Enterprise Innovation Scheme (EIS) was expanded to include qualifying AI expenditures (400% deduction on up to S$50,000) for YA 2027–2028. The Double Tax Deduction for Internationalisation (DTDi) automatic limit will be raised to S$400,000 from YA 2027. No changes were made to Section 19 or 19A capital allowance rates.

Question 5

What is the Enterprise Innovation Scheme (EIS)?

Accepted Answer

The EIS, introduced in Budget 2023 for YA 2024–2028, provides 400% tax deductions on qualifying expenditure (capped at S$400,000) for activities including R&D, IP registration, IP acquisition, employee training, and innovation projects with polytechnics or ITE. Businesses can alternatively opt for a 20% non-taxable cash payout capped at S$20,000 per YA. Budget 2026 expanded the EIS to include qualifying AI expenditures for YA 2027–2028.

Question 6

Are renovations deductible in Singapore?

Accepted Answer

Yes, under Section 14N, businesses can claim a renovation and refurbishment deduction spread equally over three consecutive years. The total claim is capped at S$300,000 per three-year period. Qualifying expenditure includes electrical and lighting works, flooring, and interior decorating but excludes assets that qualify for capital allowances.

Question 7

Can I claim capital allowances on a car in Singapore?

Accepted Answer

Generally no. Capital allowances cannot be claimed on private cars (S-plated), RU-plated cars, or company cars (Q-plated/S-plated). The exception is cars registered as 'private hire cars' or 'cars for instructional purpose' that are hired out or used for driving instruction as part of the company's business. Other motor vehicles (vans, lorries, motorcycles) used for business are fully eligible under Section 19 or 19A.

Singapore Allowance

Frequently Asked Questions

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Singapore Allowance

Frequently Asked Questions

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Singapore Allowance

Frequently Asked Questions

1What is Section 19A accelerated write-off?

2What is the 2-year accelerated write-off option (75%/25%)?

3How does Section 19 normal capital allowance work?

4What did Singapore Budget 2026 announce for businesses?

5What is the Enterprise Innovation Scheme (EIS)?

6Are renovations deductible in Singapore?

7Can I claim capital allowances on a car in Singapore?

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Singapore Allowance

Frequently Asked Questions

1What is Section 19A accelerated write-off?

2What is the 2-year accelerated write-off option (75%/25%)?

3How does Section 19 normal capital allowance work?

4What did Singapore Budget 2026 announce for businesses?

5What is the Enterprise Innovation Scheme (EIS)?

6Are renovations deductible in Singapore?

7Can I claim capital allowances on a car in Singapore?

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