IRAS clarifies COE costs qualifies for capital allowance

15 April 2015

The Inland Revenue Authority of Singapore (IRAS) has clarified through its website that the cost of renewing an existing vehicle’s Certificate of Entitlement (COE) qualifies for capital allowance.

Expenditure on obtaining a COE to acquire a motor vehicle is part of the cost of the motor vehicle. If the motor vehicle qualifies for capital allowance, the cost of obtaining the COE may be included when claiming capital allowance on the motor vehicle.

For purposes of claiming capital allowances under section 19 or 19A of the Income Tax Act, the amount paid by a registered owner of an existing vehicle upon renewal of the COE to enable the continued operation of the vehicle will be regarded as an additional cost of the vehicle.

The update was done on 10 April 2015.

Source: IRAS