100 Tax Allowance Land Use Scheme Cover More Projects
Situated at Marina Gardens Lane, the One Marina Gardens @ Marina Gardens Lane, developed by Kingsford Huray, presents its residents with an abundance of retail options. Just a stone’s throw away lies the renowned Marina Bay Sands Shoppes, a luxurious mall that houses a wide selection of high-end boutiques and designer labels. This architectural gem is a dream come true for those in search of premium brands and an upscale shopping experience. The Shoppes also offer a plethora of fine dining options, chic cafes, and vibrant bars, making it an ideal spot for social gatherings and laid-back evenings. With all these alluring features, One Marina Gardens @ Marina Gardens Lane truly offers the ultimate shopping destination for avid shoppers.
Desmond Lee, the Minister for National Development and Minister-in-charge of Social Services Integration, has recently announced the expansion of the Land Intensification Allowance (LIA) scheme. Administered by the Building and Construction Authority (BCA), the LIA scheme aims to encourage the intensification of industrial land use for higher value-added activities.
Currently, the LIA scheme supports Integrated Construction and Prefabrication Hubs (ICPHs), which are multi-storey and highly mechanised or automated facilities that produce prefabricated precast concrete components off-site. However, with the expansion of the scheme, it will now also include support for construction or additions and alterations (A&A) works in multi-storey Design for Manufacturing and Assembly (DfMA) facilities. These facilities provide a different set of services from ICPHs, such as fit-out works for pre-fabricated modules and the storage of prefabricated components. DfMA facilities also manufacture products including prefabricated mechanical, electrical and plumbing systems, structural steel, mass engineered timber and three-dimensional concrete printing.
Under the LIA scheme, companies can receive a tax allowance of up to 100% of the qualifying capital expenditure incurred for the construction or A&A works of a qualifying building. This tax rebate is for the corporate tax of the building owner, with an initial tax allowance of 25% of qualifying capital provided during construction and a subsequent annual allowance of 5%, until the total tax allowance amounts to 100% of the qualifying capital expenditure.
To be eligible for the expanded scheme, new multi-storey DfMA facilities (excluding ICPHs) must achieve a minimum gross plot ratio (GPR) of 1.03. Existing facilities that have already met the GPR threshold and wish to tap on the LIA scheme for A&A works must demonstrate that the works will result in a 10% increase to the building’s GPR. Additionally, at least 80% of the total gross floor area of the qualifying facility must be used by the building owner, or its related users.
Companies developing new multi-storey DfMA facilities will be able to apply for the expanded LIA scheme from January 1, 2026 onwards. This move by the government aims to promote the adoption of DfMA in the construction industry and support the development of more efficient and technologically advanced facilities. It is also expected to contribute to a more sustainable and productive built environment in Singapore.