28 Nov 2009

Tax Deductions for small businesses in Singapore

by Darren

Under Singapore tax law you are entitled to claim a tax deduction for expenses that are wholly and exclusively incurred in generating income. To qualify for tax deduction, the expenses must also satisfy the following conditions:
  • The expenses must be revenue in nature, that is expenses in the normal course of operating your business. Capital expenditure is not allowable as a tax deduction.
  • The deduction must not be prohibited under the Income Tax Act.
  • The expenses must be incurred, that is, it cant be a contingent liability/ expense.
To assist your tax preparation for your business, the below is a non-exhaustive list of expenses you can claim as deductions
  • Accounting, audit, bookkeeping and tax fees
  • Advertisement
  • Bank charges
  • CPF deposits,
  • Exhibition expenses
  • Interest expenses
  • Legal and professional fees
  • Medical expenses (restricted to 1% of total remuneration)
  • Office upkeep and stationary
  • Periodicals & newspapers
  • Property tax
  • Rental of business premises
  • Research and development
  • Secretarial fees
  • salary, bonus and allowances including director's remuneration
  • Staff training
  • Telephone
  • Traveling expenses
  • Wages
  • Water & electricity

Next entry: Deductions for Foreign Enterprises in China
Previous entry: US tax deductions - Small business Expenses


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