Singapore: Air conditioning and peripheral machinery | KPMG | GLOBAL

Singapore: Air conditioning and peripheral machinery, proposed property tax liability

Singapore: Air conditioning and peripheral machinery

Singapore’s property tax law currently provides that machinery used in the making, altering, repairing, ornamenting, or finishing of any article (or the adapting for sale of any article) is not subject to property tax. This provision is intended, in part, to encourage investments in manufacturing, processing, and other industrial purposes.

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A measure in a draft bill would amend the property tax law, and would “carve out” and impose property tax on machinery used for purposes of controlling, maintaining, or modifying of the temperature, atmosphere, humidity, or air quality on the taxpayer’s premises. In other words, this proposal would separate “pure” manufacturing machinery from machinery that is regarded as “peripheral” to the manufacturing process.

 

Read an October 2017 report [PDF 251 KB] prepared by the KPMG member firm in Singapore 

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