Reinvestment Allowance

Businesses can apply for Reinvestment Allowance (RA), if they been active for at least one year and acquire qualifying capital expenditure for the expansion of production capacity, modernisation and upgrading of production facilities, and diversification into related products and automation of production facilities.

The Reinvestment Allowance comes as an allowance of 60% of capital expenditure incurred for the expansion, modernisation and upgrading of production facilities and diversification into related products. The allowance can be used to counterbalance against 70% of the statutory income.

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