Singapore

Enhancing the Mergers & Acquisitions (M&A) scheme

[Singapore]  To support more M&As, the existing cap for qualifying M&A deals will be doubled from $20m to $40m, such that:            

  • » Tax allowance of 25% will be granted for up to $40m of consideration paid for qualifying M&A deals per YA; and
  • » Stamp duty relief will be granted for up to $40m of consideration paid for qualifying M&A deals per financial year.

These changes will apply to qualifying M&A deals made from 1 April 2016 to 31 March 2020.

The present economy landscapes might present an opportunity for companies to pick up some good M&A deals. This enhancement will provide substantial tax saving for the acquiring company.    

IRAS will release further details of the change by June 2016.