Tax Incentive Scheme For Highly Efficient Pollution Control Equipment

To encourage the use of highly efficient pollution control equipment, the Ministry of Finance has decided to allow all expenditure for such equipment incurred with effect from 1 Jan 1996 to enjoy 100 percent depreciation in the first year. This means that the qualifying expenditure on such equipment can be written off completely against the taxable income of the enterprise in the year following the year of purchase.

The tax incentive is administered under the following scheme

• One-year Accelerated Depreciation Allowance for Highly Efficient Pollution Control Equipment

For further enquiries, please contact:

National Environment Agency
40 Scotts Road, 11th floor Environment Building
Singapore 228231
Fax : 6731 9922
Tel :  6731-9011        
Email: Nick_Tan@nea.gov.sg

Operating Hours: Mon to Fri : 8.30 am to 6.00 pm

Guidelines 

• Accelerated depreciation allowance will be granted to any person undertaking a trade, profession or business for capital expenditure on air and water pollution control equipment
• Any person carrying on a trade, profession or business who has installed highly efficient pollution control equipment which meets the stipulated qualifying criteria
• Under this scheme, the accelerated depreciation allowance will be for a period of 1 year which means capital expenditure on the highly efficient pollution control equipment can be dispensed off in one year.

Application Procedure

• Check that the performance of the equipment meets the stipulated qualifying criteria for highly efficient :

1. Air pollution control equipment
2. Water pollution control equipment

• Obtain a copy of Form I on 'Application for One-Year Accelerated Depreciation Allowance for Highly Efficient Pollution Control Equipment' from the Policy Department, 40 Scotts Road, 11th floor, Environment Building, Singapore 228231. Fax No. 67319922 or print it out from this webpage.
• Engage an Approved Testing Agency to put up an evaluation report showing that the new equipment will be able to satisfy the stipulated qualifying criteria.
• Obtain certification from NEA that the equipment meets the criteria of a highly efficient pollution control equipment.
• Submit the application with the required certification and supporting information/data direct to the Inland Revenue Authority of Singapore (IRAS) when making your tax submission and return a copy of the form to Policy Department.