Qualifying acquisitions and allowance
The scheme concerns qualifying ordinary-share acquisitions by eligible Singapore companies, subject to ownership and business conditions. For acquisitions from 1 April 2016 through 31 December 2030, the allowance rate is 25% on purchase consideration capped at S$40 million, with an overall S$10 million allowance cap for the relevant basis-period category. The allowance is written down over five years and cannot be deferred. Group reorganisations without increased group ownership and trading-stock shares do not generally qualify.
Distinguish the benefits and dates
Qualifying transaction costs can receive double deduction, subject to a S$100,000 expenditure cap and netting relevant government support. Loan-arrangement costs, stamp duty and taxes are excluded from that cost category. Stamp-duty relief, although discussed historically in the same guide, expired for instruments executed from 1 April 2020. Extending the M&A income-tax scheme to 2030 did not revive that relief. Step acquisitions, contingent consideration and later divestment require the guide’s detailed calculations.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
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