| ASSET TYPE |
CONDITIONS FOR ANNUAL ALLOWANCES |
ANNUAL ALLOWANCES |
| Industrial Buildings |
Cost of buildings or improvements, provided building is used wholly or mainly for carrying on a process of manufacture or similar process |
Either 2%,5%, or 10% depending on date cost incurred |
| Commercial & Residential Buildings in Designated Urban Areas (no deduction allowed if building or part of building is brought into use by the taxpayer on or after 31 March 2020) |
Refurbishment of existing building (excluding low-cost residential units) |
20% |
| Construction of new building and extension to existing buildings (excluding low-cost residential units) |
20% in 1st year 8% in each of 10 subsequent years |
| Low-cost residential units: New buildings or extension/additions to existing buildings where taxpayer incurs the cost |
Year 1: 25% of the cost Year 2 – 6: 13% of the Year 7: 10% of the cost |
| Low-cost residential units: Improvements to existing buildings where the existing structure is preserved and where taxpayer incurs the cost |
Year 1: 25% of the cost Year 2 – 4: 25% of the cost |
| Low-cost residential units: New buildings or extension/additions to existing buildings where taxpayer purchased building from developer |
Year 1: 55% × 25% of the cost Year 2 – 6: 55% × 13% of the cost Year 7: 55% × 10% of the cost |
| Low-cost residential units: Improvements to existing buildings where the existing structure is preserved and where taxpayer purchased building from developer |
Year 1: 30% × 25% of the cost Year 2 – 4: 30% × 25% of the cost |
| Hotel Buildings |
Cost of portion of building or improvements used |
5% |
| Improvements that do not extent the exterior framework of the building |
20% |
| Commercial Buildings |
Cost of erecting any new and unused building as well as new and unused improvements wholly or mainly used for the purpose of producing income in the course of trade |
5% |
| Taxpayer acquires part of a building that is new and unused wholly or mainly to be used for producing income in the course of trade |
55% × 5% of the cost |
| Taxpayer acquires part of a building that has new and unused improvements to be wholly or mainly used for producing income |
30% × 5% of the improvement |
| Aircraft & Ships |
Must be used for purposes of trade |
20% |
| Plant & Machinery |
New or unused manufacturing assets |
40% in 1st year 20% in each of the 3 subsequent years |
| Plant & machinery |
New and unused plant or machinery used by the taxpayer directly in a process of manufacture by a Small Business Corporation |
100% of cost |
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