Accelerated Capital Allowance for ICT equipment and computer software

As announced in the 2024 Budget, the Gazette Orders to revise the accelerated capital allowance rates for information and communication technology (“ICT”) equipment and computer software were gazetted on 30 October 2024. The revised capital allowance rates are as follows:

Qualifying Expenditure	Capital Allowance Rate
Purchase of ICT equipment and computer software packages (including installation)	Initial Allowance: 40 % Annual Allowance: 20 %
Consultation, licensing and incidental fees related to the development of customzied computer software	Initial Allowance: 40 % Annual Allowance: 20 %

With the revised rates, the period for capital allowance claims is reduced from 4 to 3 years.