Clarifying Tax Treatment of Quasi-structural Assets

Mr Saktiandi Supaat asked the Prime Minister and Minister for Finance in light of recent adverse ruling involving capital allowance claims for quasi-structural assets such as cement silos and airport runways, whether the Ministry plans to review or clarify the tax treatment of such assets given their importance to Singapore’s operational infrastructure and impact on investment competitiveness.

The Ministry of Finance regularly reviews and updates our tax policies to ensure they remain relevant. Our reviews will take into account evolving business needs, jurisprudence and other factors relevant to our economic objectives.

The rulings referred to by the Member have provided further clarity on the assets that are not eligible for capital allowance. The Inland Revenue Authority of Singapore will update its e-Tax Guide to reflect the clarifications.