The mergers and acquisitions allowance allows a write-off of 25% of the value of qualifying mergers or acquisitions deals executed between 1 April 2015 and 31 December 2025.

The amount of allowance, to be claimed over five years, is subject to a cap of SGD 5 million (for deals executed between 1 April 2015 and 31 March 2016) or SGD 10 million (for deals executed between 1 April 2016 and 31 December 2025) for all qualifying acquisitions made in the basis period for each year of assessment.

This incentive is available to companies that are incorporated, tax resident, and carrying on a business in Singapore.

A 200% tax allowance is also granted on transaction costs (capped at SGD 100,000 per year of assessment) incurred on qualifying deals.