Share with your friends

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.


Related content

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 

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal