Extend the Not-for-Profit Organisation (“NPO”) tax incentive
- To continue attracting Not-for-Profit Organisations (NPOs) to Singapore, the NPO tax incentive which provides tax exemption on the income derived by an approved NPO, will be extended till 31 December 2027.
Allow the Automation Support Package (“ASP”) to lapse, but retain the 100% Investment Allowance (“IA”) scheme to support automation
- The Automation Support Package (ASP) will lapse after 31 March 2021.
- Schemes including the Enterprise Development Grant, IA scheme, and the Enterprise Financing Scheme will continue to be available to support businesses in their automation, productivity, and scale-up efforts.
- Specifically, the 100% IA scheme to support automation will be extended by two years, for automation projects approved by Enterprise Singapore from 1 April 2021 to 31 March 2023.
- All other conditions of the scheme remain the same.
Extend and enhance the Investment Allowance (Energy Efficiency) (“IA-EE”) scheme
- The Investment Allowance (Energy Efficiency) (IA-EE) scheme will be renamed as the “Investment Allowance for Emissions Reduction” scheme, with the following revisions:
- expansion in the scope of qualifying projects to include projects involving a reduction of greenhouse gas emissions, and
- streamlined and updated eligibility conditions. These will apply to all projects (i.e. there will no longer be a distinction between data centres and non-data centres).
- The revised conditions will apply to projects approved by the Economic Development Board (EDB) from 1 April 2021 to 31 December 2026 (both dates inclusive).
- The EDB will release further details of the changes by 30 June 2021.
Withdraw the Accelerated Depreciation Allowances for Highly Efficient Pollution Control Equipment (“ADA-PCE”) scheme
- The Accelerated Depreciation Allowances for Highly Efficient Pollution Control Equipment (ADA-PCE) scheme will be withdrawn from 17 February 2021.
- Under the scheme, a taxpayer who incurred capital expenditure to install qualifying highly efficient pollution control equipment (PCE) could accelerate the write-off of the cost of acquiring such equipment over one year.
- Since the introduction of this scheme in 1996, regulatory measures have been introduced including our air emission standards, which set emission concentration limits for a list of controlled pollutants.
- These measures are reviewed regularly to ensure relevance. The Ministry of Sustainability and the Environment (“MSE”) and the National Environment Agency (“NEA”) will continue to regularly review these measures to manage pollution and improve air quality in Singapore