Is filing a tax return necessary if my company did not gain any profits for the year?
Yes. Singapore companies are required to file a tax return annually.
Are companies allowed to pay for accommodations and travel expenses of Singapore company directors and other employees?
Yes, Singapore companies are allowed to shoulder accommodation and travel expenses of directors and employees.
Are donations tax deductible?
The following types of donations would qualify you for a double tax deduction (twice the donation value):
- Cash Donations
- Shares Donations
- Computer Donations
- Artefact Donations
- Public Art Tax Incentive Scheme
- Land and Building Donations
Are employee benefits tax deductible?
Yes. Employee benefits or healthcare benefits qualify for tax deduction.
What business expenses are deductible?
|You can claim deduction for expenses that are incurred in the production of income. It must also be revenue in nature; the deduction must not be prohibited under the Income Tax Act; and the expenses must be incurred.Examples of deductible and not deductible expenses:|
|Deductible expenses||Not deductible expenses|
|Bad debts (trade debtors)
|Bad debts (non-trade debtors)|
CPF, skill development levy, foreign workers’ levy
|CPF contributions (Voluntary*)
Certificate of entitlement (COE) for motor vehicles**
|Depreciation (you may claim capital allowances)
Exchange loss (trade and revenue in nature)
|Entrance fee (country club or other clubs)
Exchange loss (non-trade or capital in nature)
|Fixed assets written off
Fixed assets acquisition cost
|Impairment loss on trade debts
Insurance (e.g. fire, workmen compensation)
|Impairment loss on non-trade debts
Installation of fixed assets
Insurance (certain life insurance)
Interest expenses (interest adjustment)
|Legal and professional fees (trade and revenue transactions)||Legal and professional fees (non-trade or capital transactions|
|Medical expenses (restricted to 1% of total remuneration)
Motor vehicle expenses (goods / commercial vehicles, e.g. van, lorry and bus)
|Medical expenses (amount exceeding 1% of total remuneration)
Motor vehicle expenses (“S” plate private passenger cars)
|Periodicals & newspapers
Printing & stationery
Provision for bad and doubtful debts (specific)(note impairment loss on trade debts)
Provision for obsolete stocks (specific)
Private and domestic expenses
Private hire car
Provision for bad and doubtful debts (general)(note impairment loss on trade debts)
Provision for obsolete stocks (general)
|Rental of business premises
Repairs and maintenance
Restoration costs (according to tenancy agreement)
Research and development
|Renovation or refurbishment works (you may claim Section 14Q deduction for qualifying expenditure incurred from 16 Feb 2008 to 15 Feb 2013)|
Staff remunerations (salary, bonus and allowances)
|Tax fees (service fees paid to tax agent)
Transport (public transport and goods / commercial vehicles)
|Transport (“S” plate private passenger cars)|
Water & electricity