Mergers & Acquisitions (M&A) Allowance

Key requirements

The scheme has been extended to qualifying acquisitions through 31 December 2030. For acquisitions from 1 April 2016, the allowance is 25% of qualifying value, with S$40 million acquisition value and S$10 million allowance caps per relevant basis period. The allowance is spread over five years and cannot be deferred. Share acquisitions must cross the stated 20% or more-than-50% thresholds, with additional conditions at the lower threshold. The acquirer normally must be Singapore-incorporated and resident, carry on local business, have at least three local employees excluding directors for the preceding twelve months, and meet non-connection tests. Target and continuing conditions also apply. Transaction-cost double deduction is a separate benefit with its own limit, not part of the purchase consideration allowance.