Land Intensification Allowance

Companies awarded the Land Intensification Allowance (LIA) incentive can claim the following allowances on qualifying capital expenditure incurred to construct/extend an approved building:

• Initial allowance – 25%; and 
• annual allowance – 5% over 15 years

To qualify for the LIA, at least 80% of the gross floor area of the building must be used by the incentive recipient or its related users where such related users must have at least 75% common shareholding, directly or indirectly. The scheme is due to lapse after 31 December 2025. To continue encouraging intensive land use, the scheme will be extended for another five years till 31 December 2030. Also, the 75% common ownership threshold will be reduced.  For LIA applications from 1 January 2026, related users need only have more than 50% common ownership. More details will be provided by the Building and Construction Authority and Economic Development Board by the third quarter of 2025.