Budget 2015 M&A Scheme Changes: 25% Allowance and New Thresholds

Key steps and distinctions

The M&A allowance rate rose from 5% to 25%, while the annual cap on qualifying acquisition value fell from S$100 million to S$20 million. Stamp-duty relief for unlisted-share transfers correspondingly used a S$20 million deal-value cap, equivalent to S$40,000 duty per financial year. The 200% allowance on qualifying transaction costs remained, capped at S$100,000 expenditure per YA and written down in one year; the annex identifies due-diligence, legal and valuation fees as common costs. The revised ownership routes included reaching at least 20% from an initial holding below 20%, subject to conditions, or crossing above 50% from an initial holding of 50% or less. The previous route involving reaching 75% from an existing holding above 50% was removed. The 12-month look-back consolidation for staged acquisitions across financial years was also removed. The annex says further details and transitional arrangements would follow from IRAS. These are Budget 2015 changes, not a consolidated statement of the scheme in 2026; any contemporary acquisition requires the applicable current guidance and acquisition-date rules.