§ 18C — Initial and annual allowances for certain buildings and structures

18C.—(1) Where any person proposes to incur or has incurred on or after 23 February 2010 qualifying capital expenditure on the construction or renovation of a building or structure on industrial land for which an application for planning permission or conservation permission is made to the competent authority in accordance with the Planning Act 1998 on or after 23 February 2010, the person may apply to the Minister or an authorised body, on or after 1 July 2010 for such construction or renovation to be approved for the purposes of making an allowance under this section in respect of such expenditure incurred by that person.[37/2014; 41/2020]

[Act 41 of 2020 wef 12/04/2024]

(1A) Where any person proposes to incur or has incurred on or after 22 February 2014 qualifying capital expenditure on the construction or renovation of a building or structure on port land or airport land, for which an application for planning permission or conservation permission is made on or after that date to the competent authority in accordance with the Planning Act 1998, the person may apply to the Minister or an authorised body, on or after 22 February 2014 for such construction or renovation to be approved for the purposes of making an allowance under this section in respect of such expenditure incurred by that person.[37/2014; 41/2020]

[Act 41 of 2020 wef 12/04/2024]

(1B) No approval may be granted under this section after 31 December 2030.[41/2020]

[Act 25 of 2025 wef 08/12/2025]

(2) Where the Minister or an authorised body, on an application made to the Minister or authorised body under subsection (1) or (1A) that is a pre‑25 March 2016 application, is satisfied that the construction or renovation of the building or structure on industrial land, port land or airport land (as the case may be) promotes the prescribed intensified use of the land for the purposes of a prescribed trade or business, the Minister or authorised body may, by notice in writing, approve the construction or renovation for the purposes of this section, which approval is subject to such conditions as the Minister or authorised body may impose, including the particular trade or business for which the building or structure is to be used upon completion of construction or renovation.[Act 41 of 2020 wef 12/04/2024]

(2A) The Minister or an authorised body may, on application by a person who made an application under subsection (1) or (1A) pursuant to which a construction or renovation of a building or structure is approved under subsection (2), vary a condition of the approval as to the particular trade or business for which the building or structure may be used upon completion of the construction or renovation, if the Minister or authorised body is satisfied that the ground mentioned in subsection (2) for approving an application under subsection (1) or (1A) continues to be met.[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(2B) The Minister or an authorised body may, by written notice, approve an application made under subsection (1) or (1A) that is a post‑25 March 2016 application if, based on the information provided by the applicant, the Minister or authorised body is satisfied that —(a)

on completion of the construction or renovation, at least 80% of the total floor area of the building or structure will be used —(i)

by —(A)

a single person who is either the applicant or a person related to the applicant; or

(B)

2 or more persons who satisfy the requirements of relatedness; and

(ii)

for one or more prescribed trades or businesses; and

(b)

the construction or renovation of the building or structure on the land promotes the prescribed intensified use of the land for the purposes of that trade or business or, if there is more than one trade or business, such of those trades or businesses as may be designated in the regulations.[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(2C) An approval under subsection (2B) is subject to the condition that, upon completion of the construction or renovation, at least 80% of the total floor area of the building or structure will be used —(a)

by one or more persons specified in the notice mentioned in subsection (2B) who —(i)

if it will be used by a single person, is either the applicant of the application concerned under subsection (1) or (1A), or a person related to the applicant; or

(ii)

if it will be used by 2 or more persons, satisfy the requirements of relatedness; and

(b)

for one or more trades or businesses specified in the application.[34/2016]

(2D) An approval under subsection (2B) may be subject to such other conditions as the Minister or authorised body may impose.[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(2E) The Minister or an authorised body may, on application by a person who made an application under subsection (1) or (1A) pursuant to which a construction or renovation of a building or structure is approved under subsection (2B) —(a)

substitute any person or trade or business mentioned in subsection (2C) with any other person or trade or business; or

(b)

add a person or trade or business to the person or trade or business mentioned in subsection (2C),

if the Minister or authorised body is satisfied that the requirements in subsection (2B)(a) and (b) continue to be met.

[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(2F) Where a trade or business is prescribed by regulations under subsection (11A), then, unless otherwise provided in the regulations, the Minister or authorised body may only —(a)

approve an application under subsection (2) for a renovation or construction because it promotes the prescribed intensified use of the land for that trade or business; or

(b)

approve an application under subsection (2B) because at least 80% of the total floor area of the building or structure will be used, on completion of the construction or renovation, by a person or persons mentioned in subsection (2B)(a)(i) for that trade or business or for trades or businesses which include that trade or business,

if —

(c)

the application is made on or after a prescribed date; and

(d)

the application for planning permission or conservation permission for the construction or renovation is made on or after a prescribed date.[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(2G) In relation to any construction or renovation that is approved pursuant to an application to which subsection (2F) applies, the qualifying capital expenditure for which an allowance may be made under subsections (3) and (4) excludes any expenditure incurred before a prescribed date, unless the regulations under subsection (11A) provide otherwise.[34/2016]

(2H) The prescribed date mentioned in subsection (2F)(c) or (d) or (2G) is, unless otherwise specified in the regulations, the date the trade or business is prescribed by regulations under subsection (11A).[34/2016]

(2I) To avoid doubt, a reference in subsections (2F) and (2H) to the prescribing of a trade or business under subsection (11A) is, in the case of an application made under subsection (1) or (1A) before 25 March 2016, a reference to the prescribing of a trade or business under subsection (2) in force immediately before that date.[34/2016]

(2J) In relation to any construction or renovation that is approved pursuant to a post‑25 March 2016 application (other than one with only a single specified user and a single specified trade or business), the qualifying capital expenditure for which an allowance may be made under subsections (3) and (4) excludes any expenditure incurred before 25 March 2016.[34/2016]

(3) Where in the basis period for any year of assessment the person has incurred any qualifying capital expenditure on the approved construction or approved renovation (as the case may be), there is to be made to the person for the year of assessment in the basis period for which the expenditure was incurred an allowance to be known as an “initial allowance” equal to 25% of the expenditure.

(4) Subject to subsections (5), (5AA) and (6), where the person is, at the end of the basis period for any year of assessment, entitled to a relevant interest in the building or structure which is being used for the purposes of the specified trade or business or (as the case may be) trades or businesses, and in respect of which qualifying capital expenditure is incurred, there is to be made to the person for that year of assessment an allowance to be known as an “annual allowance” equal to 5% of the qualifying capital expenditure incurred by the person.[34/2016]

(5) Where the construction or renovation is approved pursuant to a pre‑25 March 2016 application, no allowance is to be made under subsection (4) for any year of assessment unless —(a)

in a case where 2 or more temporary occupation permits are to be issued for the subject of the approved construction or renovation, and one or more of those temporary occupation permits have been issued but not all of them, at least 80% of the total floor area of the subject of each temporary occupation permit that has been issued; or

(b)

in any other case, at least 80% of the total floor area of the subject of the approved construction or renovation,

is used, at the end of the basis period for that year of assessment, by any one person for the purposes of the specified trade or business, and, for the case in paragraph (a), that person is the same person for all the subjects of the temporary occupation permits that have been issued.

[2/2016; 34/2016]

(5AA) Where the construction or renovation is approved pursuant to a post‑25 March 2016 application, no allowance is to be made under subsection (4) for any year of assessment unless —(a)

in a case where 2 or more temporary occupation permits are to be issued for the subject of the approved construction or renovation, but not all of those temporary occupation permits have been issued, at least 80% of the total floor area of the subject of each temporary occupation permit that has been issued; or

(b)

in any other case, at least 80% of the total floor area of the subject of the approved construction or renovation,

is used, at the end of the basis period for that year of assessment —

(c)

for the purposes of the specified trade or business or one or more of the specified trades or businesses; and

(d)

by —(i)

one person who is a specified user and is either the applicant of the post‑25 March 2016 application or related to the applicant; or

(ii)

2 or more persons who are specified users and satisfy the requirements of relatedness.[34/2016]

(5A) In subsections (5) and (5AA), the subject of an approved construction or renovation, or of a temporary occupation permit, is the building or structure, all the buildings or structures, or the part or all the parts of a building or structure (as the case may be) that forms or form the subject matter of the approved construction or renovation, or the temporary occupation permit.[2/2016; 34/2016]

(6) Any annual allowance made to any person under subsection (4) in respect of an approved construction or approved renovation for any year of assessment must not exceed the amount of qualifying capital expenditure remaining unallowed as at the beginning of the basis period for that year of assessment.

(7) For the purposes of this section, qualifying capital expenditure incurred by any person on the approved construction or approved renovation (as the case may be) prior to the commencement of the person’s trade or business is deemed to have been incurred by that person on the first day that person carries on that trade or business.

(8) Where the person fails to comply with the condition in subsection (2C), or any condition imposed under subsection (2) or (2D) in respect of the approved construction or approved renovation, the Minister or an authorised body, may, by written notice, revoke the approval granted under that subsection.[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(9) Despite section 74(1) and (4), where an approval has been revoked under subsection (8), the Comptroller may, at any time, for the purpose of making good any loss of tax attributable to such revocation of approval, assess the person who has utilised the allowance made under this section at such amount or additional amount as according to the Comptroller’s judgment ought to have been charged; and this subsection also applies, with the necessary modifications, to any assessment which results in any unabsorbed allowances or losses.

(10) Where, in the basis period for any year of assessment, the specified trade or business for which purpose the building or structure is used, produces income that is exempt from tax as well as income chargeable with tax, the allowance for that year of assessment must be made against each income for that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances.

(11) A person who has incurred qualifying capital expenditure on the approved construction or approved renovation must maintain and deliver to the Minister or an authorised body or the Comptroller, in such form and manner and within such reasonable time as the Minister, the authorised body or the Comptroller may determine, the relevant records of the approved construction or approved renovation, and such other particulars as may be required for the purposes of this section.[Act 41 of 2020 wef 12/04/2024]

(11A) The Minister may make regulations prescribing matters required or permitted by this section to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to this section.[34/2016]

(12) In this section —“airport land” means any land zoned for use as an airport under the Master Plan;

“approved construction or approved renovation” means the construction or renovation (as the case may be) of a building or structure on industrial land, port land or airport land (as the case may be) approved under subsection (2) or (2B);

“industrial land” means any land zoned for the purpose of “Business 1” or “Business 2” (other than “Business 1 White” and “Business 2 White”) under the Master Plan, and includes such other land as may be approved by the Minister;

“Master Plan” means the Master Plan as defined in the Planning Act 1998 which is effective on the date of the application for planning permission or conservation permission referred to in subsection (1) or (1A), as the case may be;

“port land” means any land zoned for use as a port under the Master Plan;

“post‑25 March 2016 application” means an application under subsection (1) or (1A) —(a)

that is made on or after 25 March 2016; and

(b)

that relates to the construction or renovation of a building or structure for which an application for planning permission or conservation permission is made on or after 25 March 2016;

“pre‑25 March 2016 application” means an application under subsection (1) or (1A) that is not a post‑25 March 2016 application;

“qualifying capital expenditure” means the following types of capital expenditure:(a)

costs of feasibility study on the layout of the building or structure;

(b)

design fees of the building or structure;

(c)

costs of preparing plans for obtaining approval for the building or structure;

(d)

piling, construction and renovation costs;

(e)

demolition costs of an existing building or structure for which an allowance was not made under section 16;

(f)

legal and other professional fees in relation to the approved construction or approved renovation; and

(g)

stamp duties payable in respect of title of the building or structure;

“relevant interest”, in relation to any qualifying capital expenditure incurred on an approved construction or approved renovation of a building or structure, means the interest in that building or structure to which the person who incurred the expenditure was entitled when the person incurred it;

“specified trade or business” means —(a)

the trade or business specified in a condition of approval under subsection (2) as one for which the building or structure may be used upon completion of the approved construction or renovation, including one substituted for that trade or business pursuant to a variation under subsection (2A); or

(b)

the trade or business or any of the trades or businesses mentioned in subsection (2C)(b), including one substituted for that trade or business or added under subsection (2E),

as the case may be;

“specified user” means the person or any of the persons mentioned in subsection (2C), including one substituted for that person or added under subsection (2E);

“temporary occupation permit” means a temporary occupation permit granted under section 12(3) of the Building Control Act 1989.[37/2014; 2/2016; 34/2016]

(13) In this section, capital expenditure for the renovation or construction of a building or structure or of a part of a building or structure, that is incurred after the date a temporary occupation permit is issued for the building, structure or part of the building or structure (as the case may be) is not qualifying capital expenditure.[2/2016]

(14) In this section —(a)

a reference to a temporary occupation permit issued or to be issued for one or more buildings or structures or one or more parts of a building or structure (called in this paragraph the subject) is, if no temporary occupation permit is issued or to be issued for the subject, a reference to the certificate of statutory completion issued or to be issued under section 12(1) of the Building Control Act 1989 for —(i)

the subject; or

(ii)

a building or structure that includes the subject; and

(b)

a reference to the date of issue of a temporary occupation permit is to be construed accordingly.[2/2016]

(15) In this section —(a)

2 or more persons satisfy the requirements of relatedness if —(i)

each of them is related to one or more of the others; and

(ii)

either —(A)

one of them is the applicant of the application under subsection (1) or (1A) and the other or others is or are related to the applicant; or

(B)

all of them are related to the applicant; and

(b)

a person is related to another person if —(i)

where the application for planning permission or conservation permission is made between 25 March 2016 and 31 December 2025 (both dates inclusive) and the application under subsection (1) or (1A) is made on or after 25 March 2016 —(A)

one of those persons beneficially holds, directly or indirectly, at least 75% of the total number of issued ordinary shares of the other person (being a company);

(B)

one of those persons is entitled, directly or indirectly, to at least 75% of the income of the other person (being a partnership);

(C)

a third person beneficially holds, directly or indirectly, at least 75% of the total number of issued ordinary shares of each of those persons (being companies);

(D)

a third person is entitled, directly or indirectly, to at least 75% of the income of each of those persons (being partnerships); or

(E)

a third person beneficially holds, directly or indirectly, at least 75% of the total number of issued ordinary shares of one of those persons (being a company), and is entitled, directly or indirectly, to at least 75% of the income of the other person (being a partnership); or[Act 25 of 2025 wef 08/12/2025]

(ii)

where the application for planning permission or conservation permission and the application under subsection (1) or (1A) are made on or after 1 January 2026 —(A)

one of those persons beneficially holds, directly or indirectly, more than 50% of the total number of issued ordinary shares of the other person (being a company);

(B)

one of those persons is entitled, directly or indirectly, to more than 50% of the income of the other person (being a partnership);

(C)

a third person beneficially holds, directly or indirectly, more than 50% of the total number of issued ordinary shares of each of those persons (being companies);

(D)

a third person is entitled, directly or indirectly, to more than 50% of the income of each of those persons (being partnerships); or

(E)

a third person beneficially holds, directly or indirectly, more than 50% of the total number of issued ordinary shares of one of those persons (being a company), and is entitled, directly or indirectly, to more than 50% of the income of the other person (being a partnership).[Act 25 of 2025 wef 08/12/2025]

(iii)

[Deleted by Act 25 of 2025 wef 08/12/2025]

(iv)

[Deleted by Act 25 of 2025 wef 08/12/2025]

(v)

[Deleted by Act 25 of 2025 wef 08/12/2025][34/2016]

(16) A reference to a person in subsections (2B)(a)(i), (2C)(a), (2E)(a) and (b), (5AA)(d) and (15), and in the definition of “specified user” in subsection (12), includes a partnership.[34/2016]

—(1) Where any person proposes to incur or has incurred on or after 23 February 2010 qualifying capital expenditure on the construction or renovation of a building or structure on industrial land for which an application for planning permission or conservation permission is made to the competent authority in accordance with the Planning Act 1998 on or after 23 February 2010, the person may apply to the Minister or an authorised body, on or after 1 July 2010 for such construction or renovation to be approved for the purposes of making an allowance under this section in respect of such expenditure incurred by that person.[37/2014; 41/2020]

[Act 41 of 2020 wef 12/04/2024]

(1A) Where any person proposes to incur or has incurred on or after 22 February 2014 qualifying capital expenditure on the construction or renovation of a building or structure on port land or airport land, for which an application for planning permission or conservation permission is made on or after that date to the competent authority in accordance with the Planning Act 1998, the person may apply to the Minister or an authorised body, on or after 22 February 2014 for such construction or renovation to be approved for the purposes of making an allowance under this section in respect of such expenditure incurred by that person.[37/2014; 41/2020]

[Act 41 of 2020 wef 12/04/2024]

(1B) No approval may be granted under this section after 31 December 2030.[41/2020]

[Act 25 of 2025 wef 08/12/2025]

(2) Where the Minister or an authorised body, on an application made to the Minister or authorised body under subsection (1) or (1A) that is a pre‑25 March 2016 application, is satisfied that the construction or renovation of the building or structure on industrial land, port land or airport land (as the case may be) promotes the prescribed intensified use of the land for the purposes of a prescribed trade or business, the Minister or authorised body may, by notice in writing, approve the construction or renovation for the purposes of this section, which approval is subject to such conditions as the Minister or authorised body may impose, including the particular trade or business for which the building or structure is to be used upon completion of construction or renovation.[Act 41 of 2020 wef 12/04/2024]

(2A) The Minister or an authorised body may, on application by a person who made an application under subsection (1) or (1A) pursuant to which a construction or renovation of a building or structure is approved under subsection (2), vary a condition of the approval as to the particular trade or business for which the building or structure may be used upon completion of the construction or renovation, if the Minister or authorised body is satisfied that the ground mentioned in subsection (2) for approving an application under subsection (1) or (1A) continues to be met.[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(2B) The Minister or an authorised body may, by written notice, approve an application made under subsection (1) or (1A) that is a post‑25 March 2016 application if, based on the information provided by the applicant, the Minister or authorised body is satisfied that —(a)

on completion of the construction or renovation, at least 80% of the total floor area of the building or structure will be used —(i)

by —(A)

a single person who is either the applicant or a person related to the applicant; or

(B)

2 or more persons who satisfy the requirements of relatedness; and

(ii)

for one or more prescribed trades or businesses; and

(b)

the construction or renovation of the building or structure on the land promotes the prescribed intensified use of the land for the purposes of that trade or business or, if there is more than one trade or business, such of those trades or businesses as may be designated in the regulations.[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(2C) An approval under subsection (2B) is subject to the condition that, upon completion of the construction or renovation, at least 80% of the total floor area of the building or structure will be used —(a)

by one or more persons specified in the notice mentioned in subsection (2B) who —(i)

if it will be used by a single person, is either the applicant of the application concerned under subsection (1) or (1A), or a person related to the applicant; or

(ii)

if it will be used by 2 or more persons, satisfy the requirements of relatedness; and

(b)

for one or more trades or businesses specified in the application.[34/2016]

(2D) An approval under subsection (2B) may be subject to such other conditions as the Minister or authorised body may impose.[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(2E) The Minister or an authorised body may, on application by a person who made an application under subsection (1) or (1A) pursuant to which a construction or renovation of a building or structure is approved under subsection (2B) —(a)

substitute any person or trade or business mentioned in subsection (2C) with any other person or trade or business; or

(b)

add a person or trade or business to the person or trade or business mentioned in subsection (2C),

if the Minister or authorised body is satisfied that the requirements in subsection (2B)(a) and (b) continue to be met.

[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(2F) Where a trade or business is prescribed by regulations under subsection (11A), then, unless otherwise provided in the regulations, the Minister or authorised body may only —(a)

approve an application under subsection (2) for a renovation or construction because it promotes the prescribed intensified use of the land for that trade or business; or

(b)

approve an application under subsection (2B) because at least 80% of the total floor area of the building or structure will be used, on completion of the construction or renovation, by a person or persons mentioned in subsection (2B)(a)(i) for that trade or business or for trades or businesses which include that trade or business,

if —

(c)

the application is made on or after a prescribed date; and

(d)

the application for planning permission or conservation permission for the construction or renovation is made on or after a prescribed date.[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(2G) In relation to any construction or renovation that is approved pursuant to an application to which subsection (2F) applies, the qualifying capital expenditure for which an allowance may be made under subsections (3) and (4) excludes any expenditure incurred before a prescribed date, unless the regulations under subsection (11A) provide otherwise.[34/2016]

(2H) The prescribed date mentioned in subsection (2F)(c) or (d) or (2G) is, unless otherwise specified in the regulations, the date the trade or business is prescribed by regulations under subsection (11A).[34/2016]

(2I) To avoid doubt, a reference in subsections (2F) and (2H) to the prescribing of a trade or business under subsection (11A) is, in the case of an application made under subsection (1) or (1A) before 25 March 2016, a reference to the prescribing of a trade or business under subsection (2) in force immediately before that date.[34/2016]

(2J) In relation to any construction or renovation that is approved pursuant to a post‑25 March 2016 application (other than one with only a single specified user and a single specified trade or business), the qualifying capital expenditure for which an allowance may be made under subsections (3) and (4) excludes any expenditure incurred before 25 March 2016.[34/2016]

(3) Where in the basis period for any year of assessment the person has incurred any qualifying capital expenditure on the approved construction or approved renovation (as the case may be), there is to be made to the person for the year of assessment in the basis period for which the expenditure was incurred an allowance to be known as an “initial allowance” equal to 25% of the expenditure.

(4) Subject to subsections (5), (5AA) and (6), where the person is, at the end of the basis period for any year of assessment, entitled to a relevant interest in the building or structure which is being used for the purposes of the specified trade or business or (as the case may be) trades or businesses, and in respect of which qualifying capital expenditure is incurred, there is to be made to the person for that year of assessment an allowance to be known as an “annual allowance” equal to 5% of the qualifying capital expenditure incurred by the person.[34/2016]

(5) Where the construction or renovation is approved pursuant to a pre‑25 March 2016 application, no allowance is to be made under subsection (4) for any year of assessment unless —(a)

in a case where 2 or more temporary occupation permits are to be issued for the subject of the approved construction or renovation, and one or more of those temporary occupation permits have been issued but not all of them, at least 80% of the total floor area of the subject of each temporary occupation permit that has been issued; or

(b)

in any other case, at least 80% of the total floor area of the subject of the approved construction or renovation,

is used, at the end of the basis period for that year of assessment, by any one person for the purposes of the specified trade or business, and, for the case in paragraph (a), that person is the same person for all the subjects of the temporary occupation permits that have been issued.

[2/2016; 34/2016]

(5AA) Where the construction or renovation is approved pursuant to a post‑25 March 2016 application, no allowance is to be made under subsection (4) for any year of assessment unless —(a)

in a case where 2 or more temporary occupation permits are to be issued for the subject of the approved construction or renovation, but not all of those temporary occupation permits have been issued, at least 80% of the total floor area of the subject of each temporary occupation permit that has been issued; or

(b)

in any other case, at least 80% of the total floor area of the subject of the approved construction or renovation,

is used, at the end of the basis period for that year of assessment —

(c)

for the purposes of the specified trade or business or one or more of the specified trades or businesses; and

(d)

by —(i)

one person who is a specified user and is either the applicant of the post‑25 March 2016 application or related to the applicant; or

(ii)

2 or more persons who are specified users and satisfy the requirements of relatedness.[34/2016]

(5A) In subsections (5) and (5AA), the subject of an approved construction or renovation, or of a temporary occupation permit, is the building or structure, all the buildings or structures, or the part or all the parts of a building or structure (as the case may be) that forms or form the subject matter of the approved construction or renovation, or the temporary occupation permit.[2/2016; 34/2016]

(6) Any annual allowance made to any person under subsection (4) in respect of an approved construction or approved renovation for any year of assessment must not exceed the amount of qualifying capital expenditure remaining unallowed as at the beginning of the basis period for that year of assessment.

(7) For the purposes of this section, qualifying capital expenditure incurred by any person on the approved construction or approved renovation (as the case may be) prior to the commencement of the person’s trade or business is deemed to have been incurred by that person on the first day that person carries on that trade or business.

(8) Where the person fails to comply with the condition in subsection (2C), or any condition imposed under subsection (2) or (2D) in respect of the approved construction or approved renovation, the Minister or an authorised body, may, by written notice, revoke the approval granted under that subsection.[34/2016]

[Act 41 of 2020 wef 12/04/2024]

(9) Despite section 74(1) and (4), where an approval has been revoked under subsection (8), the Comptroller may, at any time, for the purpose of making good any loss of tax attributable to such revocation of approval, assess the person who has utilised the allowance made under this section at such amount or additional amount as according to the Comptroller’s judgment ought to have been charged; and this subsection also applies, with the necessary modifications, to any assessment which results in any unabsorbed allowances or losses.

(10) Where, in the basis period for any year of assessment, the specified trade or business for which purpose the building or structure is used, produces income that is exempt from tax as well as income chargeable with tax, the allowance for that year of assessment must be made against each income for that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances.

(11) A person who has incurred qualifying capital expenditure on the approved construction or approved renovation must maintain and deliver to the Minister or an authorised body or the Comptroller, in such form and manner and within such reasonable time as the Minister, the authorised body or the Comptroller may determine, the relevant records of the approved construction or approved renovation, and such other particulars as may be required for the purposes of this section.[Act 41 of 2020 wef 12/04/2024]

(11A) The Minister may make regulations prescribing matters required or permitted by this section to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to this section.[34/2016]

(12) In this section —“airport land” means any land zoned for use as an airport under the Master Plan;

“approved construction or approved renovation” means the construction or renovation (as the case may be) of a building or structure on industrial land, port land or airport land (as the case may be) approved under subsection (2) or (2B);

“industrial land” means any land zoned for the purpose of “Business 1” or “Business 2” (other than “Business 1 White” and “Business 2 White”) under the Master Plan, and includes such other land as may be approved by the Minister;

“Master Plan” means the Master Plan as defined in the Planning Act 1998 which is effective on the date of the application for planning permission or conservation permission referred to in subsection (1) or (1A), as the case may be;

“port land” means any land zoned for use as a port under the Master Plan;

“post‑25 March 2016 application” means an application under subsection (1) or (1A) —(a)

that is made on or after 25 March 2016; and

(b)

that relates to the construction or renovation of a building or structure for which an application for planning permission or conservation permission is made on or after 25 March 2016;

“pre‑25 March 2016 application” means an application under subsection (1) or (1A) that is not a post‑25 March 2016 application;

“qualifying capital expenditure” means the following types of capital expenditure:(a)

costs of feasibility study on the layout of the building or structure;

(b)

design fees of the building or structure;

(c)

costs of preparing plans for obtaining approval for the building or structure;

(d)

piling, construction and renovation costs;

(e)

demolition costs of an existing building or structure for which an allowance was not made under section 16;

(f)

legal and other professional fees in relation to the approved construction or approved renovation; and

(g)

stamp duties payable in respect of title of the building or structure;

“relevant interest”, in relation to any qualifying capital expenditure incurred on an approved construction or approved renovation of a building or structure, means the interest in that building or structure to which the person who incurred the expenditure was entitled when the person incurred it;

“specified trade or business” means —(a)

the trade or business specified in a condition of approval under subsection (2) as one for which the building or structure may be used upon completion of the approved construction or renovation, including one substituted for that trade or business pursuant to a variation under subsection (2A); or

(b)

the trade or business or any of the trades or businesses mentioned in subsection (2C)(b), including one substituted for that trade or business or added under subsection (2E),

as the case may be;

“specified user” means the person or any of the persons mentioned in subsection (2C), including one substituted for that person or added under subsection (2E);

“temporary occupation permit” means a temporary occupation permit granted under section 12(3) of the Building Control Act 1989.[37/2014; 2/2016; 34/2016]

(13) In this section, capital expenditure for the renovation or construction of a building or structure or of a part of a building or structure, that is incurred after the date a temporary occupation permit is issued for the building, structure or part of the building or structure (as the case may be) is not qualifying capital expenditure.[2/2016]

(14) In this section —(a)

a reference to a temporary occupation permit issued or to be issued for one or more buildings or structures or one or more parts of a building or structure (called in this paragraph the subject) is, if no temporary occupation permit is issued or to be issued for the subject, a reference to the certificate of statutory completion issued or to be issued under section 12(1) of the Building Control Act 1989 for —(i)

the subject; or

(ii)

a building or structure that includes the subject; and

(b)

a reference to the date of issue of a temporary occupation permit is to be construed accordingly.[2/2016]

(15) In this section —(a)

2 or more persons satisfy the requirements of relatedness if —(i)

each of them is related to one or more of the others; and

(ii)

either —(A)

one of them is the applicant of the application under subsection (1) or (1A) and the other or others is or are related to the applicant; or

(B)

all of them are related to the applicant; and

(b)

a person is related to another person if —(i)

where the application for planning permission or conservation permission is made between 25 March 2016 and 31 December 2025 (both dates inclusive) and the application under subsection (1) or (1A) is made on or after 25 March 2016 —(A)

one of those persons beneficially holds, directly or indirectly, at least 75% of the total number of issued ordinary shares of the other person (being a company);

(B)

one of those persons is entitled, directly or indirectly, to at least 75% of the income of the other person (being a partnership);

(C)

a third person beneficially holds, directly or indirectly, at least 75% of the total number of issued ordinary shares of each of those persons (being companies);

(D)

a third person is entitled, directly or indirectly, to at least 75% of the income of each of those persons (being partnerships); or

(E)

a third person beneficially holds, directly or indirectly, at least 75% of the total number of issued ordinary shares of one of those persons (being a company), and is entitled, directly or indirectly, to at least 75% of the income of the other person (being a partnership); or[Act 25 of 2025 wef 08/12/2025]

(ii)

where the application for planning permission or conservation permission and the application under subsection (1) or (1A) are made on or after 1 January 2026 —(A)

one of those persons beneficially holds, directly or indirectly, more than 50% of the total number of issued ordinary shares of the other person (being a company);

(B)

one of those persons is entitled, directly or indirectly, to more than 50% of the income of the other person (being a partnership);

(C)

a third person beneficially holds, directly or indirectly, more than 50% of the total number of issued ordinary shares of each of those persons (being companies);

(D)

a third person is entitled, directly or indirectly, to more than 50% of the income of each of those persons (being partnerships); or

(E)

a third person beneficially holds, directly or indirectly, more than 50% of the total number of issued ordinary shares of one of those persons (being a company), and is entitled, directly or indirectly, to more than 50% of the income of the other person (being a partnership).[Act 25 of 2025 wef 08/12/2025]

(iii)

[Deleted by Act 25 of 2025 wef 08/12/2025]

(iv)

[Deleted by Act 25 of 2025 wef 08/12/2025]

(v)

[Deleted by Act 25 of 2025 wef 08/12/2025][34/2016]

(16) A reference to a person in subsections (2B)(a)(i), (2C)(a), (2E)(a) and (b), (5AA)(d) and (15), and in the definition of “specified user” in subsection (12), includes a partnership.[34/2016]