For Singapore Corporate tax, the Investment allowance granted in the scenario below, would it be based on the qualifying expenditure capped of $5,000,000 or the approved fixed capital expenditure?

In addition, would PIC scheme be applicable in the scenario below?

Scenario

Company A has been granted the investment allowance incentive commencing on 1 June 2014 for two years. The investment allowance rate is 40%. The approved fixed capital expenditure is granted to the two new machines with amount of qualifying expenditure capped at S$5,000,000.

1. (a) Moulding machine, purchase price S$3,900,000 paid in full on 1 December 2014
2. (b) Coating machine, purchase price S$5,100,000 acquired on hire purchase and delivered on 1 August 2014

Company Amade capital repayments totalling S$3,000,000 in the year ended 31 December 2014 for the new coating machine. The remaining amount was paid off by 1 November 2015. The adjusted profits of Company A, before capital and investment allowances, for the following years were:

Year ended 31 December 2014 S$7,000,000

Year ended 31 December 2015 S$4,500,000