# legal_provisions

document_id: ita-1947
provision_ref: s14J
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14J
title: Deduction for upfront land premium
content:
14J. —(1) Where the Comptroller is satisfied that an upfront land premium has been paid by a lessee to a relevant body in respect of a designated lease for the construction or use of a building or structure for the purposes of carrying on any qualifying activity in that building or structure, there is, subject to this section, allowed to the lessee, for each year of assessment in the basis period for which the qualifying activity is carried on, a deduction of an amount of such expenditure ascertained by the formula where A is the amount of upfront land premium paid; and B is the number of years of the term of the designated lease for which the upfront land premium was paid. (2) Where an assignee has incurred any expenditure in acquiring the remaining term of a designated lease for the construction or use of a building or structure for the purposes of carrying on any qualifying activity, there is, subject to this section, allowed to the assignee, for each year of assessment in the basis period for which the qualifying activity is carried on, a deduction of an amount of such expenditure ascertained by the formula where C is — ( a ) the residual expenditure immediately after the assignment; or ( b ) the upfront land premium at the time of the assignment as determined by the relevant body for the remaining term of the designated lease, whichever is the lower; and D is the remaining number of years (excluding any part of a year) of the term of the designated lease for which the upfront land premium was paid. (3) Subsection (2) applies, with the necessary modifications, to any subsequent assignment of the remaining term of the designated lease. (4) The total amount of deductions to be allowed — ( a ) to a lessee under subsection (1), must not exceed the amount of the upfront land premium paid by the lessee to the relevant body in respect of the designated lease; and ( b ) to an assignee under subsection (2) or (3) (as the case may be) must not exceed the amount of C as ascertained in the formula in subsection (2). (5) Where more than one‑tenth of the total built‑up area of a building or structure constructed on any industrial land under a designated lease is not in use for any qualifying activity, no deduction under subsection (1), (2) or (3) is allowed in respect of such part of the building or structure which is not in use for any qualifying activity. (6) No deduction is allowed under this section to any person for any year of assessment if the building or structure constructed on any industrial land under a designated lease is not in use for any qualifying activity at the end of the basis period for that year of assessment. (7) The following provisions apply where a designated lease is assigned: ( a ) where the consideration received by the assignor for the remaining term of the designated lease is less than the residual expenditure immediately before the assignment, the difference is allowed as a deduction to the assignor for the year of assessment in the basis period in which the assignor assigns the remaining term of the designated lease; ( b ) where the consideration received by the assignor for the remaining term of the designated lease is more than the residual expenditure immediately before the assignment, the difference is deemed to be income subject to tax under section 10(1)( g ) and is included as income of the assignor for the year of assessment in the basis period in which the assignor assigns the remaining term of the designated lease. (8) The amount deemed to be income of an assignor for the purposes of subsection (7)( b ) must not exceed the total amount of deduction allowed to the assignor under subsection (1), (2) or (3), as the case may be. (9) In this section — “designated lease” means any lease in respect of any industrial land granted to a lessee by a relevant body — ( a ) for a period of 30 years or less during the period from 1 January 1998 to the last day of the basis period for the year of assessment 2003 of the lessee (both dates inclusive); or ( b ) for a period of 60 years or less on or after the first day of the basis period for the year of assessment 2004 of the lessee and before 28 February 2013, and includes an assignment of such a lease; “industrial land” means any land permitted to be used for industrial purposes under the Planning Act 1998; “qualifying activity” means — ( a ) any activity in respect of any of the purposes referred to in section 18(1) other than the activities for purposes referred to in section 18(1)( h ) and ( i ); ( b ) any activity in respect of any prescribed purposes under section 18(1)( j ) other than any activity relating to postal services or to the organisation or management of exhibitions and conferences; and ( c ) any activity relating to the examination of motor vehicles for the purposes of section 90 of the Road Traffic Act 1961 and the rules made under that Act; “relevant body” means — ( a ) the Housing and Development Board constituted under the Housing and Development Act 1959; or ( b ) the Jurong Town Corporation constituted under the Jurong Town Corporation Act 1968; “residual expenditure”, in relation to an assignment of a designated lease, is the amount of expenditure available for deduction to the assignor reduced by — ( a ) the amount of any deduction allowed to the assignor under this section; and ( b ) the amount of any deduction not allowed to the assignor under subsection (5) or (6), and increased by any amount deemed to be income of the assignor under subsection (7)( b ); “upfront land premium”, in relation to a designated lease, means the lump sum payment paid by a lessee to a relevant body at the commencement of the term of the designated lease. [14N [37/2014]


document_id: ita-1947
provision_ref: s14K
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14K
title: Deduction for special reserve of approved general insurer
content:
14K. —(1) The Minister may by regulations provide that, for the purpose of ascertaining the income of a general insurer approved by the Minister or such person as the Minister may appoint from carrying on the business of insuring and reinsuring offshore risks, there is to be allowed for a period of 10 years a deduction for the prescribed amount of special reserves set aside by the approved general insurer for prescribed offshore risks. (2) Regulations made under subsection (1) may provide for — ( a ) any amount transferred to the special reserve on an earlier date to be deemed to have been transferred out of the special reserve first; ( b ) the circumstances in which any amount which has been allowed as deduction under this section may be deemed as trading receipt for any basis period; ( c ) the adjustment of any amount deemed as trading receipt for any basis period in respect of any amount which has been allowed as deduction under this section; and ( d ) generally for giving full effect to or for carrying out the purposes of this section. (3) In this section — “insurer” has the meaning given by section 43C; “offshore risk” has the meaning given by section 26. [14O


document_id: ita-1947
provision_ref: s14L
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14L
title: Deduction for treasury shares transferred under employee equity‑based remuneration scheme
content:
14L. —(1) Where a company transfers, in the basis period for the year of assessment 2007 or any subsequent year of assessment, treasury shares held by it to any person under a stock option scheme or a share award scheme by reason of any office or employment held in Singapore by that person, there is allowed a deduction to that company for that year of assessment. (2) Subject to subsection (8), the amount of deduction to be allowed to a company under subsection (1) is the cost to the company of acquiring the treasury shares transferred to the person less any amount payable by that person for the treasury shares. (3) For the purpose of subsection (2), the cost to the company of acquiring the treasury shares is determined by any of the methods referred to in subsection (4), being (if the company has previously been allowed a deduction under this section) the method consistently adopted by it when ascertaining its cost of acquiring shares under this section. (4) The methods referred to in subsection (3) are as follows: ( a ) on the basis that the treasury shares acquired by the company at an earlier point in time are deemed to be transferred first; ( b ) on the basis of the formula where A is the number of the treasury shares transferred; B is the total number of treasury shares held by the company immediately before the transfer; and C is the total cost to the company of acquiring the treasury shares held by it immediately before the transfer; ( c ) on the basis of the aggregate cost of all treasury shares transferred under subsection (1) within every regular interval in the basis period during which the transfer in question occurred, where the cost of all treasury shares so transferred within a regular interval is ascertained by the formula where D is the total number of treasury shares transferred under subsection (1) within that interval; E is the total number of treasury shares held by the company at the end of the period equal in length to the regular interval immediately preceding that interval; F is the total number of treasury shares acquired by the company within that interval; G is the total cost to the company of acquiring the treasury shares held by it at the end of the period equal in length to the regular interval immediately preceding that interval; and H is the total cost to the company of acquiring treasury shares within that interval. (5) Where any amount payable by a person for any treasury shares transferred to the person exceeds the cost to the company of acquiring the treasury shares transferred as determined under subsection (3), the amount of the excess must be credited to an account to be kept by the company for the purpose of this section. (6) Where there is any balance in the account kept by the company under subsection (5) and any treasury shares are subsequently transferred by the company to any person under subsection (1), the cost to the company of acquiring the treasury shares as determined under subsection (3) is reduced — ( a ) where the amount of the balance is equal to or exceeds the amount of the cost, to zero; or ( b ) where the amount of the balance is less than the amount of the cost, by the amount of the balance, and the amount of the reduction must be debited to the account. (7) For the purpose of this section, a company transfers treasury shares held by it to a person when the person acquires the legal and beneficial interest in the treasury shares. (8) Where a holding company transfers treasury shares held by it to any person employed at any time by a subsidiary of the holding company under a stock option scheme or a share award scheme — ( a ) no deduction is allowed to the holding company under subsection (1); ( b ) if any amount is paid or payable by the subsidiary to the holding company for the transfer of the treasury shares, there is allowed to the subsidiary for the year of assessment which relates to the basis period in which the shares are transferred or in which the payment to the holding company for the shares becomes due and payable (whichever is the later), a deduction under subsection (1) of the lower of — (i) the amount, less any amount paid or payable by the person for the treasury shares, to the extent the amount so paid or payable has not been deducted from the firstmentioned amount; and (ii) an amount equal to the cost to the holding company of acquiring the treasury shares transferred to that person as determined under subsection (8A) less any amount paid or payable by the person for the treasury shares; and [Act 33 of 2022 wef 04/11/2022] ( c ) subsections (5) and (6) do not apply to a company to which this subsection applies. [Act 33 of 2022 wef 04/11/2022] (8A) For the purpose of subsection (8)( b ), the amount equal to the cost to the holding company of acquiring the treasury shares transferred to a person is determined — ( a ) in accordance with subsection (3); or ( b ) where the holding company is incorporated outside Singapore and the following conditions are satisfied, on the basis that the treasury shares acquired by the holding company at the latest point in time are deemed to be transferred first: (i) the basis is in accordance with the accounting policy of the group of companies of which the holding company is a member; (ii) if there are applicable accounting principles which are generally accepted in the country in which the holding company is incorporated, the basis is in accordance with those principles; (iii) the basis is consistently adopted by the holding company unless otherwise allowed by the Comptroller; and (iv) the Comptroller is satisfied that the basis is not adopted for the purposes of deriving any tax benefit or obtaining any tax advantage. (9) In this section — [ Deleted by Act 33 of 2022 wef 04/11/2022 ] “regular interval”, in relation to a basis period, means one of a number of equal periods within the basis period — ( a ) where the aggregate of all of those equal periods is equal to the basis period; and ( b ) where the duration of each equal period — (i) in a case where the company has previously been allowed a deduction under this section, is the one previously adopted by the company for the purpose of this section; or (ii) in any other case, is any duration adopted by the company for the purpose of this section. [14P


document_id: ita-1947
provision_ref: s14M
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14M
title:
Deduction for shares transferred by special purpose vehicle under employee equity‑based remuneration scheme

content:
14M. —(1) Where — ( a ) a special purpose vehicle has acquired treasury shares or previously issued shares in a company and, in the basis period for any year of assessment between the year of assessment 2012 and the year of assessment 2025 (both years inclusive), transfers those shares to any person under a stock option scheme or a share award scheme by reason of any office or employment held in Singapore by that person in the company; and [Act 25 of 2025 wef 08/12/2025] ( b ) payment by the company for the shares transferred to the person has become due and payable, then the company is allowed a deduction for the relevant year of assessment of an amount referred to in subsection (2). (2) The amount of deduction under subsection (1) is — ( a ) where the transferred shares are previously issued shares, the lower of the following: (i) the amount paid or payable by the company for the shares, less any amount paid or payable by the person for the shares, to the extent the amount so paid or payable has not been deducted from the firstmentioned amount; (ii) the cost to the special purpose vehicle of acquiring the shares, less any amount paid or payable by the person for the shares; or ( b ) where the transferred shares are treasury shares, either — (i) the lowest of the following: (A) the amount paid or payable by the company to the special purpose vehicle for the shares, less any amount paid or payable by the person for the shares, to the extent the amount so paid or payable has not been deducted from the firstmentioned amount; (B) the cost to the special purpose vehicle of acquiring the shares, less any amount paid or payable by the person for the shares to the extent the amount so paid or payable has not been deducted from the amount paid or payable by the special purpose vehicle to the company for those shares; (C) the cost to the company of acquiring the shares, less any amount paid or payable by the person for the shares; or (ii) where the amounts referred to in sub‑paragraph (i)(A) and (B) are both nil, the cost to the company of acquiring the shares less any amount paid or payable by the person for the shares. (2A) Where — ( a ) a special purpose vehicle has acquired treasury shares or previously issued shares in a company and, in the basis period for the year of assessment 2026 or any subsequent year of assessment, transfers those shares to any person under a stock option scheme or a share award scheme by reason of any office or employment held in Singapore by that person in the company; and ( b ) payment by the company for the shares transferred to the person has become due and payable, then the company is allowed a deduction for the relevant year of assessment of an amount referred to in subsection (2B). [Act 25 of 2025 wef 08/12/2025] (2B) The amount of deduction under subsection (2A) is — ( a ) where the transferred shares are previously issued shares, the lower of the following: (i) the amount paid or payable by the company for the shares, less any amount paid or payable by the person for the shares, to the extent the amount so paid or payable has not been deducted from the firstmentioned amount; (ii) the cost to the special purpose vehicle of acquiring the shares, less any amount paid or payable by the person for the shares; or ( b ) where the transferred shares are treasury shares, the cost to the company of acquiring the shares, less any amount paid or payable by the person for the shares. [Act 25 of 2025 wef 08/12/2025] (3) For the purposes of subsections (2)( a )(ii) and ( b )(i)(B) and (2B)( a )(ii), the cost to the special purpose vehicle of acquiring the transferred shares is determined by any of the methods referred to in subsection (4), being (if the company has previously been allowed a deduction under this section for a transfer of shares by the special purpose vehicle) the method that is consistently adopted by the special purpose vehicle when ascertaining its cost of acquiring transferred shares under this section. [Act 25 of 2025 wef 08/12/2025] (4) The methods referred to in subsection (3) are as follows: ( a ) on the basis that the company’s shares acquired by the special purpose vehicle at an earlier point in time are deemed to be transferred first; ( b ) on the basis of the formula where A is the number of the transferred shares; B is the total number of the company’s shares held by the special purpose vehicle immediately before the transfer; and C is the total cost to the special purpose vehicle of acquiring the company’s shares held by it immediately before the transfer; ( c ) on the basis of the aggregate cost of all of the company’s shares transferred by the special purpose vehicle under subsection (1) or (2A) (as the case may be) within every regular interval in the basis period during which the transfer in question occurred, where the cost of all shares so transferred within a regular interval is ascertained by the formula where D is the total number of the company’s shares transferred by the special purpose vehicle under subsection (1) or (2A) (as the case may be) within that interval; E is the total number of the company’s shares held by the special purpose vehicle at the end of the period equal in length to the regular interval immediately preceding that interval; F is the total number of the company’s shares acquired by the special purpose vehicle within that interval; G is the total cost to the special purpose vehicle of acquiring the company’s shares held by it at the end of the period equal in length to the regular interval immediately preceding that interval; and H is the total cost to the special purpose vehicle of acquiring the company’s shares within that interval. [Act 25 of 2025 wef 08/12/2025] (5) For the purpose of subsections (2)( b )(i)(C) and (ii) and (2B)( b ), the cost to the company of acquiring the transferred shares is determined by any of the methods referred to in section 14L(4) as modified in accordance with subsection (6), being (if the company has previously been allowed a deduction under this section) the method that is consistently adopted by the company when ascertaining its cost of acquiring transferred shares under this section. [Act 25 of 2025 wef 08/12/2025] (6) The methods referred to in section 14L(4) apply for the purposes of subsection (5) as if a reference to the transfer under section 14L were a reference to the transfer of the treasury shares by the company to the special purpose vehicle. (7) Where — ( a ) a special purpose vehicle has acquired treasury shares or previously issued shares in the holding company of another company (called in this section subsidiary X) and, in the basis period for any year of assessment between the year of assessment 2012 and the year of assessment 2025 (both years inclusive), transfers those shares to a person under a stock option scheme or a share award scheme by reason of any office or employment held in Singapore by that person in subsidiary X; and [Act 25 of 2025 wef 08/12/2025] ( b ) payment by subsidiary X for the shares transferred to the person has become due and payable, [Act 25 of 2025 wef 08/12/2025] then subsidiary X is allowed a deduction for the relevant year of assessment of an amount referred to in subsection (8). [Act 25 of 2025 wef 08/12/2025] (8) The amount of deduction under subsection (7) is — ( a ) where the transferred shares are previously issued shares, the lower of the following: (i) the amount paid or payable by subsidiary X for the shares, less any amount paid or payable by the person for the shares, to the extent the amount so paid or payable has not been deducted from the firstmentioned amount; [Act 25 of 2025 wef 08/12/2025] (ii) the cost to the special purpose vehicle of acquiring the shares, less any amount paid or payable by the person for the shares; or ( b ) where the transferred shares are treasury shares, either — (i) the lowest of the following: (A) the amount paid or payable by subsidiary X for the shares, less any amount paid or payable by the person for the shares, to the extent the amount so paid or payable has not been deducted from the firstmentioned amount; [Act 25 of 2025 wef 08/12/2025] (B) the cost to the special purpose vehicle of acquiring the shares, less any amount paid or payable by the person for the shares to the extent the amount so paid or payable has not been deducted from the amount paid or payable by the special purpose vehicle to the holding company for those shares; (C) the cost to the holding company of acquiring the shares, as determined in accordance with section 14L(8A), less any amount paid or payable by the person for the shares; or (ii) where the amount referred to in sub‑paragraph (i)(B) is nil, the lower of the amounts referred to in sub‑paragraph (i)(A) and (C). (8A) Where — ( a ) a special purpose vehicle has acquired treasury shares or previously issued shares in the holding company of another company (called in this section subsidiary Y) and, in the basis period for the year of assessment 2026 or any subsequent year of assessment, transfers those shares to a person under a stock option scheme or a share award scheme by reason of any office or employment held in Singapore by that person in subsidiary Y; and ( b ) payment by subsidiary Y for the shares transferred to the person has become due and payable, then subsidiary Y is allowed a deduction for the relevant year of assessment of an amount mentioned in subsection (8B). [Act 25 of 2025 wef 08/12/2025] (8B) The amount of deduction under subsection (8A) is — ( a ) where the transferred shares are previously issued shares, the lower of the following: (i) the amount paid or payable by subsidiary Y for the shares, less any amount paid or payable by the person for the shares, to the extent the amount so paid or payable has not been deducted from the firstmentioned amount; (ii) the cost to the special purpose vehicle of acquiring the shares, less any amount paid or payable by the person for the shares; or ( b ) where the transferred shares are treasury shares, the lower of the following: (i) the amount paid or payable by subsidiary Y for the shares, less any amount paid or payable by the person for the shares, to the extent the amount so paid or payable has not been deducted from the firstmentioned amount; (ii) the cost to the holding company of acquiring the shares, as determined in accordance with section 14L(8A), less any amount paid or payable by the person for the shares. [Act 25 of 2025 wef 08/12/2025] (9) For the purpose of subsections (8)( a )(ii) and ( b )(i)(B) and (8B)( a )(ii), the cost to the special purpose vehicle of acquiring the transferred shares is determined by any of the methods referred to in subsection (4) as modified in accordance with subsection (10), being (if subsidiary X or subsidiary Y (as the case may be) has previously been allowed a deduction under this section for a transfer of shares by the special purpose vehicle) the method that is consistently adopted by the special purpose vehicle when ascertaining its cost of acquiring shares under this section. [Act 25 of 2025 wef 08/12/2025] (10) The methods referred to in subsection (4) apply for the purposes of subsection (9) as if — ( a ) a reference to the company is a reference to the holding company; [Act 25 of 2025 wef 08/12/2025] ( b ) a reference to subsection (1) is a reference to subsection (7); and [Act 25 of 2025 wef 08/12/2025] ( c ) a reference to subsection (2A) is a reference to subsection (8A). [Act 25 of 2025 wef 08/12/2025] (11) For the purposes of this section, shares are transferred to a person when both the legal and beneficial interests in the shares are so transferred. (12) No deduction is allowed to a company under this section if a deduction has already been allowed to the company under any other provision of this Act in respect of the transferred shares. (13) In this section — “group of companies” means 2 or more companies each of which is eithe


document_id: ita-1947
provision_ref: s14MA
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14MA
title: Deduction for new shares issued by holding company under employee equity‑based remuneration scheme
content:
14MA. —(1) Where — ( a ) in the basis period for the year of assessment 2026 or any subsequent year of assessment — (i) a company issues new shares; or (ii) a special purpose vehicle that was issued new shares of a company (whether or not those shares were issued in that basis period) transfers those shares, to a person (called in this section an employee) under a stock option scheme or a share award scheme by reason of any office or employment held in Singapore by that employee in a subsidiary of the company; and ( b ) payment by the subsidiary for the shares issued or transferred to the employee has become due and payable, then the subsidiary is allowed a deduction of an amount mentioned in subsection (2) in the year of assessment relating to the basis period in which paragraph ( a ) or ( b ) occurs, whichever is later. (2) The amount of deduction under subsection (1) is the lower of — ( a ) the amount paid or payable by the subsidiary for the shares, less any amount paid or payable by the employee for the shares to the extent the secondmentioned amount has not been deducted from the firstmentioned amount; and ( b ) the value of the shares at the time of issue under subsection (1)( a )(i) or transfer under subsection (1)( a )(ii) (as the case may be) of the shares to the employee, less any amount paid or payable by the employee for the shares. (3) For the purpose of subsection (2)( b ), the value of the shares is — ( a ) the price of the shares in the open market; or ( b ) if it is not possible to determine that price, the net asset value of the shares at the time of their issue under subsection (1)( a )(i) or transfer under subsection (1)( a )(ii) (as the case may be) to the employee. (4) For the purpose of this section, shares are issued or transferred to an employee when the employee acquires the legal and beneficial interest in the shares. (5) No deduction is allowed to a subsidiary under this section if a deduction has already been allowed to the subsidiary under any other provision of this Act in respect of the shares issued or transferred to the employee. (6) In this section — “group of companies” means 2 or more companies each of which is either a holding company or subsidiary of the other or any of the others; “shares” includes stocks but does not include redeemable or convertible shares or shares of a preferential nature; “special purpose vehicle” means a trustee of a trust (when acting in such capacity) that is set up solely for the administration of a stock option scheme or share award scheme under which shares in one company within a group of companies to which both the company and subsidiary mentioned in subsection (1) belong, are to be used for the remuneration of a person by reason of any office or employment held by that person in a company within that group of companies. [Act 25 of 2025 wef 08/12/2025]


document_id: ita-1947
provision_ref: s14N
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14N
title: Deduction for renovation or refurbishment expenditure
content:
14N. —(1) Subject to this section, where any person carrying on a trade, profession or business has incurred on or after 16 February 2008 expenditure on any renovation or refurbishment works for the purposes of that trade, profession or business (called in this section renovation or refurbishment expenditure), the person may claim a deduction in respect of the renovation or refurbishment expenditure in accordance with this section. (2) Any claim for renovation or refurbishment expenditure under this section must be made at the time of lodgment of the return of income for the year of assessment relating to the basis period in which the expenditure is incurred or within such further time as the Comptroller may allow. (3) For the purposes of subsection (1) and subject to subsections (7), (8), (8A) and (9), a deduction is allowed for one‑third of the renovation or refurbishment expenditure for the basis period in which the expenditure was incurred and the balance is to be allowed by 2 equal deductions, one for each of the basis periods for the next 2 succeeding years of assessment. (3A) Despite subsection (3), for the purposes of subsection (1) and subject to subsections (7), (8), (8A) and (9), where the renovation or refurbishment expenditure is incurred during the basis period relating to the year of assessment 2021, 2022, 2024 or any subsequent year of assessment, a deduction is allowed for that year of assessment for the full amount of the renovation or refurbishment expenditure so incurred, unless a person elects for the deduction to be allowed in accordance with subsection (3). [41/2020; 27/2021] [Act 30 of 2023 wef 30/10/2023] [Act 35 of 2024 wef 27/11/2024] (3B) An election made by a person under subsection (3A) is irrevocable. (4) For the purposes of this section, any renovation or refurbishment expenditure incurred by any person prior to the commencement of that person’s trade, profession or business is deemed to have been incurred by that person on the first day that person carries on that trade, profession or business but the deduction for this is subject to section 14X. [34/2016] (5) Where it appears to the Comptroller that a deduction under this section which has been allowed to any person in any year of assessment ought not to have been allowed by virtue of subsection (9)( a ), there is deemed to be income of the person chargeable to tax, for the year of assessment in which the Comptroller discovers the incorrect claim, an amount equal to such deduction. (6) [ Deleted by Act 32 of 2019 ] (7) A person is not entitled to — ( a ) a deduction for renovation or refurbishment expenditure under this section where a deduction or an allowance for that expenditure is allowed under any other provision of this Act; ( b ) a deduction for renovation or refurbishment expenditure under this section in any basis period subsequent to the basis period in which the person permanently ceases the trade, profession or business for which purpose the expenditure was incurred; or ( c ) [ Deleted by Act 32 of 2019 ] ( d ) [ Deleted by Act 32 of 2019 ] ( e ) [ Deleted by Act 32 of 2019 ] ( f ) a deduction for any amount of renovation or refurbishment expenditure incurred by a person during a specified period that begins with the basis period for the year of assessment 2013 or any subsequent year of assessment that is in excess of $300,000 of such expenditure. [32/2019] (8) In subsection (7)( f ), “specified period” means — ( a ) a period that is — (i) a period of 3 consecutive basis periods beginning with the basis period for the year of assessment in which a deduction is first allowed to the person under this section; or (ii) any successive period of 3 consecutive basis periods, except that — (iii) if any of the basis periods in the period in sub-paragraph (i) or (ii) is the basis period for the year of assessment 2024, then that period (called period X ) ends at the end of that basis period; and (iv) sub-paragraph (ii) excludes any period that succeeds period X ; and ( b ) a period of 3 consecutive basis periods beginning with the basis period for the year of assessment 2025, or any successive period of 3 consecutive basis periods. [Act 35 of 2024 wef 27/11/2024] (8A) Subsection (7)( f ) applies for the purpose of determining the total amount of the deductions to be allowed to all the partners of a partnership carrying on a trade, profession or business, for the renovation or refurbishment expenditure incurred by the partnership, as if — ( a ) references in those provisions to an amount of renovation or refurbishment expenditure incurred by a person were references to an amount of such expenditure incurred by the partnership; and ( b ) references in those provisions to a specified period were to — (i) a period that is — (A) a period of 3 consecutive basis periods beginning with the basis period for the year of assessment in which a deduction is first allowed to any partner of the partnership under this section for the renovation or refurbishment expenditure incurred by the partnership; or (B) any successive period of 3 consecutive basis periods, except that — (C) if any of the basis periods in the period in sub-paragraph (A) or (B) is the basis period for the year of assessment 2024, then that period (called period X ) ends at the end of that basis period; and (D) sub-paragraph (B) excludes any period that succeeds period X ; and (ii) a period of 3 consecutive basis periods beginning with the basis period for the year of assessment 2025, or any successive period of 3 consecutive basis periods. [32/2019] [Act 35 of 2024 wef 27/11/2024] (9) No deduction is allowed to a person under this section for any renovation or refurbishment expenditure relating to — ( a ) unless otherwise approved by the Minister or such person as the Minister may appoint, any renovation or refurbishment works, the plans of which require the approval of the Commissioner of Building Control under the Building Control Act 1989; ( b ) any designer or professional fees incurred in the basis period for the year of assessment 2024 or an earlier year of assessment, or any designer or professional fees related to the works mentioned in paragraph ( a ) incurred in the basis period for the year of assessment 2025 or a subsequent year of assessment; [Act 35 of 2024 wef 27/11/2024] ( c ) any antique; ( d ) any type of fine art, including any painting, drawing, print, calligraphy, mosaic, sculpture, pottery or art installation; ( da ) any works carried out in relation to a place of residence provided or to be provided by the person to the person’s employees, where the expenditure is incurred on or after 18 December 2012; or ( e ) such other item as may be prescribed by the Minister by regulations. [14Q


document_id: ita-1947
provision_ref: s14O
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14O
title: Deduction for qualifying training expenditure for years of assessment 2011 to 2018
content:
14O. —(1) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2011 or the year of assessment 2012, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction under section 14, a deduction for qualifying training expenditure incurred for the purposes of those trades and businesses computed in accordance with the formula where A is — ( a ) for the year of assessment 2011, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $800,000; and ( b ) for the year of assessment 2012, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $800,000 the lower of the amounts specified in paragraph ( a )(i) and (ii). (2) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14, a deduction for qualifying training expenditure incurred for the purposes of those trades and businesses computed in accordance with the formula where A is — ( a ) for the year of assessment 2013, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2014, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2015, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (2A) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2016, 2017 or 2018, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14, a deduction for qualifying training expenditure incurred for the purposes of those trades and businesses computed in accordance with the formula where A is — ( a ) for the year of assessment 2016, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2017, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2018, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (3) No deduction is allowed to a person under this section in respect of any expenditure which is not allowed as a deduction under section 14. (4) In subsection (1), the amount under paragraph ( a )(ii) is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2012, and the balance under paragraph ( b )(ii) is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2011. (5) In subsection (2) — ( a ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and ( c ) to avoid doubt, no deduction may be made from the substituted amount in subsection (2)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (2)( a )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2013, and no deduction may be made from the substituted amount in subsection (2)( c )(ii) of the lower of the amounts specified in subsection (2)( b )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2014. (5AA) In subsection (2A) — ( a ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the reference to “$1,200,000” in the paragraphs of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and ( c ) to avoid doubt, no deduction may be made from the substituted amount in subsection (2A)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (2A)( a )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2016, and no deduction may be made from the substituted amount in subsection (2A)( c )(ii) of the lower of the amounts specified in subsection (2A)( b )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2017. [37/2014] (5A) For the purposes of subsections (1), (2) and (2A), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has, during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), incurred qualifying training expenditure in respect of such firms for the purposes of his or her trade or business, the deduction that may be allowed to him or her for that expenditure in respect of all of his or her trades and businesses must not exceed the amount computed in accordance with subsection (1), (2) or (2A) (as the case may be) for that year of assessment. [37/2014] (5B) For the purposes of subsections (1), (2) and (2A), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), incurred qualifying training expenditure for the purposes of its trade or business, the aggregate of the deductions that may be allowed to all the partners of the partnership for that expenditure in respect of all of the trades and businesses of the partnership must not exceed the amount computed in accordance with subsection (1), (2) or (2A) (as the case may be) for that year of assessment. [37/2014] (6) In this section — “accredited”, in relation to a course, means accredited — ( a ) by the Singapore Workforce Development Agency before 4 October 2016; or ( b ) by the SkillsFuture Singapore Agency on or after that date; “central hirer”, in relation to a central hiring arrangement for a group of related parties, means the person who carries out hiring functions for those parties under the arrangement; “central hiring arrangement” means an arrangement for a group of related parties entered into for a bona fide commercial reason, where the hiring functions of the parties in the group are carried out by a single person; “employee”, for the purposes of the year of assessment 2012 and subsequent years of assessment, and in relation to a person carrying on a trade or business (called in this definition the first person), includes an individual within such class of individuals as may be prescribed — ( a ) who is either — (i) engaged by the first person (whether as agent, independent contractor or otherwise) to carry on that trade or business; or (ii) engaged by another person (whether as agent, independent contractor or otherwise) to carry on that trade or business, where that other person also engages the first person (whether as agent, independent contractor or otherwise) both to carry on that trade or business and to oversee the individual in carrying on that trade or business; or ( b ) to whom the first person leases property, in the course of such trade or business, to enable the individual to provide a service to any person; “employee”, for the purposes of the year of assessment 2014 and subsequent years of assessment, and in relation to a person carrying on a trade or business (called in this definition the first person), includes — ( a ) an individual — (i) who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the first person, and who is deployed to work solely for the first person; and (ii) whose salary and other remuneration (including training expenditure incurred in respect of the individual) is borne, directly or indirectly, by the first person and not claimed by the central hirer as a deduction against the central hirer’s own income; and ( b ) an individual — (i) being an employee of another person, who is seconded to the first person under a bona fide commercial arrangement to work solely for the first person; and (ii) whose salary and other remuneration (including training expenditure in respect of the individual) is borne, directly or indirectly, by the first person and not claimed by the other person as a deduction against the other person’s own income; “qualifying training expenditure” means — ( a ) any training expenditure incurred directly in providing for employees — (i) a Workforce Skills Qualification (WSQ) training course which is accredited and conducted by a WSQ in‑house training provider; (ii) a course approved by the Institute of Technical Education (ITE) under the ITE Approved Training Centre scheme; (iii) on‑the‑job training by an on‑the‑job training centre which is certified by the ITE; or (iv) for the purposes of the year of assessment 2012 and subsequent years of assessment, any other in‑house training course, and includes any salary and other remuneration paid to in‑house trainers for conducting such courses and training (based on the hours spent in conducting the courses and training), but excludes salaries and other remuneration or payments of any employee attending or providing administrative support for the courses and imputed overheads like rental and the cost of utilities; ( b ) course fees for employees paid (whether directly or in the form of reimbursement) to an external training provider, including — (i) registration or enrolment fees; (ii) examination fees; (iii) tuition fees; and (iv) aptitude test fees; and ( c ) rental of training facilities for any course or training referred to in paragraph ( a ) or ( b ), expenditure for meals and refreshm


document_id: ita-1947
provision_ref: s14P
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14P
title: Deduction for qualifying design expenditure
content:
14P. —(1) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2011 or the year of assessment 2012, there are allowed, in respect of all of the person’s trades and businesses, the following deductions for qualifying design expenditure incurred for the purposes of those trades and businesses during each basis period: ( a ) where such expenditure is allowable as a deduction under section 14, a deduction of 300% of A, in addition to the deduction allowed under that section; and ( b ) where such expenditure is not allowable as a deduction under section 14, a deduction of 400% of A, where A is — ( c ) for the year of assessment 2011, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $800,000; and ( d ) for the year of assessment 2012, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $800,000 the lower of the amounts specified in paragraph ( c )(i) and (ii). (2) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015, there are allowed, in respect of all of the person’s trades and businesses, the following deductions for qualifying design expenditure incurred for the purposes of those trades and businesses during the basis period: ( a ) where such expenditure is allowable as a deduction under section 14, a deduction of 300% of A, in addition to the deduction allowed under that section; and ( b ) where such expenditure is not allowable as a deduction under section 14, a deduction of 400% of A, where A is — ( c ) for the year of assessment 2013, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( d ) for the year of assessment 2014, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( c )(i) and (ii); and ( e ) for the year of assessment 2015, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( c )(i) and (ii), and the lower of the amounts specified in paragraph ( d )(i) and (ii). [37/2014] (2AA) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2016, 2017 or 2018, there are allowed, in respect of all of the person’s trades and businesses, the following deductions for qualifying design expenditure incurred for the purposes of those trades and businesses during the basis period: ( a ) where such expenditure is allowable as a deduction under section 14, a deduction of 300% of A, in addition to the deduction allowed under that section; and ( b ) where such expenditure is not allowable as a deduction under section 14, a deduction of 400% of A, where A is — ( c ) for the year of assessment 2016, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( d ) for the year of assessment 2017, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( c )(i) and (ii); and ( e ) for the year of assessment 2018, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( c )(i) and (ii), and the lower of the amounts specified in paragraph ( d )(i) and (ii). [37/2014] (2A) In subsection (1), the amount under paragraph ( c )(ii) is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2012, and the balance under paragraph ( d )(ii) is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2011. (2B) In subsection (2) — ( a ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and ( c ) to avoid doubt, no deduction may be made from the substituted amount in subsection (2)( d )(ii) or ( e )(ii) of the lower of the amounts specified in subsection (2)( c )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2013, and no deduction may be made from the substituted amount in subsection (2)( e )(ii) of the lower of the amounts specified in subsection (2)( d )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2014. (2C) In subsection (2AA) — ( a ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the reference to “$1,200,000” in the paragraphs of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and ( c ) to avoid doubt, no deduction may be made from the substituted amount in subsection (2AA)( d )(ii) and ( e )(ii) of the lower of the amounts specified in subsection (2AA)( c )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2016, and no deduction may be made from the substituted amount in subsection (2AA)( e )(ii) of the lower of the amounts specified in subsection (2AA)( d )(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2017. [37/2014] (3) For the purposes of subsections (1), (2) and (2AA), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has incurred qualifying design expenditure during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive) in respect of such firms for the purposes of his or her trade or business, the deduction that may be allowed to him or her for that expenditure in respect of all of his or her trades and businesses must not exceed the amount computed in accordance with subsection (1), (2) or (2AA) (as the case may be) for that year of assessment. [37/2014] (4) For the purposes of subsections (1), (2) and (2AA), where a partnership carrying on a trade or business has incurred qualifying design expenditure during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive) for the purposes of its trade or business, the aggregate of the deductions that may be allowed to all the partners of the partnership for that expenditure in respect of all of the trades and businesses of the partnership must not exceed the amount computed in accordance with subsection (1), (2) or (2AA) (as the case may be) for that year of assessment. [37/2014] (5) For the purpose of this section, any expenditure incurred by a person prior to the commencement of that person’s trade or business is deemed to have been incurred by that person on the first day on which that person carries on that trade or business but a deduction for this is subject to section 14X. [34/2016] (6) In this section — “approved design service provider” means any person who provides design consultancy services for any trade or business, and who is approved by the Minister or such person as the Minister may appoint; “industrial or product design” means the professional specifications of creating and developing concepts or specifications that improve or enhance the functions, value or appearance of physical products, taking into account users’ needs, marketability and production; “qualified designer” means an individual with a design‑related tertiary academic qualification of at least a diploma that is approved by such person as the Minister may appoint; “qualifying design expenditure” means — ( a ) expenditure incurred by the person on the staff costs of in‑house qualified designers which are attributable to an industrial or product design project approved under subsection (7) and undertaken primarily in Singapore and directly by that person; and ( b ) where an approved design service provider has been engaged by the person to undertake primarily in Singapore for the trade or business in question an industrial or product design project approved under subsection (7) — (i) where more than 60% of all payments made by the person to the approved design service provider for the project are staff costs, the actual amount of staff costs; or (ii) in all other cases, 60% of those payments, but does not include any expenditure or payment to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board; “staff costs” means any salary, wages and other benefits whether in the form of money or otherwise (but excluding directors’ fees), paid or granted in respect of the employment of any qualified designer which are attributable to the industrial or product design project. (7) The Minister or such person as the Minister may appoint may approve an industrial or product design project for the purposes of the definition of “qualifying design expenditure” under subsection (6), and may in granting the approval impose such conditions as the Minister or appointed person thinks fit. (7A) For the purpose of the definition of “qualifying design expenditure” in subsection (6), an industrial or product design project is undertaken primarily in Singapore if at least 3 of the following 5 design phases of the project are carried out wholly in Singapore: ( a ) design research; ( b ) idea generation; ( c ) concept development; ( d ) technical development; ( e ) communication. (8) Where a person fails to comply with any condition imposed under subsection (7), the aggregate of deductions allowed to the person under this section is deemed to be the person’s income for the year of assessment in which the Comptroller discovers such non‑compliance. [14S


document_id: ita-1947
provision_ref: s14Q
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14Q
title: Deduction for expenditure on leasing of PIC automation equipment under qualifying lease
content:
14Q. —(1) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2011 or the year of assessment 2012, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction under section 14, a deduction for the expenditure incurred for the purposes of those trades and businesses on the leasing of one or more PIC automation equipment under a qualifying lease or leases, computed in accordance with the formula where A is — ( a ) for the year of assessment 2011, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $800,000; and ( b ) for the year of assessment 2012, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $800,000 the lower of the amounts specified in paragraph ( a )(i) and (ii). (2) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14, a deduction for the expenditure incurred for the purposes of those trades and businesses on the leasing of one or more PIC automation equipment under a qualifying lease or leases, computed in accordance with the formula where A is — ( a ) for the year of assessment 2013, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2014, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2015, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (2A) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2016, 2017 or 2018, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14, a deduction for the expenditure incurred for the purposes of those trades or businesses on the leasing of one or more PIC automation equipment under a qualifying lease or leases, computed in accordance with the formula where A is — ( a ) for the year of assessment 2016, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2017, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2018, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (3) No deduction is allowed to a person under this section in respect of — ( a ) any expenditure which is not allowed as a deduction under section 14; or ( b ) any expenditure incurred during the basis period for a year of assessment on the leasing of any PIC automation equipment under a qualifying lease where — (i) the equipment is sub‑leased to another person during that basis period; or (ii) an allowance has been previously made to that person under section 19 or 19A in respect of the equipment. (4) Where a person has incurred expenditure on both the leasing under a qualifying lease and the provision of one or more PIC automation equipment during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2015 (both years inclusive), the aggregate of the deduction under subsection (1) or (2) and the allowance under section 19A(2A) or (2B) in respect of all such expenditure must not exceed — ( a ) in the case of the year of assessment 2011, 300% of the lower of the following: (i) the aggregate of all such expenditure; (ii) $800,000; ( b ) in the case of the year of assessment 2012, 300% of the lower of the following: (i) the aggregate of all such expenditure; (ii) the balance after deducting from $800,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); ( c ) in the case of the year of assessment 2013, 300% of the lower of the following: (i) the aggregate of all such expenditure; (ii) $1,200,000; ( d ) in the case of the year of assessment 2014, 300% of the lower of the following: (i) the aggregate of all such expenditure; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( c )(i) and (ii); and ( e ) in the case of the year of assessment 2015, 300% of the lower of the following: (i) the aggregate of all such expenditure; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( c )(i) and (ii), and the lower of the amounts specified in paragraph ( d )(i) and (ii). (4A) Where a person has incurred expenditure on both the leasing under a qualifying lease and the provision of one or more PIC automation equipment during the basis period for any year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the aggregate of the deduction under subsection (2A) and the allowance under section 19A(2BAA) in respect of all such expenditure must not exceed — ( a ) in the case of the year of assessment 2016, 300% of the lower of the following: (i) the aggregate of all such expenditure; (ii) $1,200,000; ( b ) in the case of the year of assessment 2017, 300% of the lower of the following: (i) the aggregate of all such expenditure; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) in the case of the year of assessment 2018, 300% of the lower of the following: (i) the aggregate of all such expenditure; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (5) In subsections (1) and (4), the amounts under subsections (1)( a )(ii) and (4)( a )(ii) are each substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2012, and the balances under subsections (1)( b )(ii) and (4)( b )(ii) are each substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2011. (6) In subsections (2) and (4) — ( a ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of those subsections applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of those subsections applicable to the remaining year of assessment are each substituted with “$400,000”; and ( c ) to avoid doubt — (i) if the person does not carry on any trade or business during the basis period for the year of assessment 2013, no deduction may be made from the substituted amount in subsection (2)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (2)( a )(i) and (ii), or from the substituted amount in subsection (4)( d )(ii) or ( e )(ii) of the lower of the amounts specified in subsection (4)( c )(i) and (ii); and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2014, no deduction may be made from the substituted amount in subsection (2)( c )(ii) of the lower of the amounts specified in subsection (2)( b )(i) and (ii), or from the substituted amount in subsection (4)( e )(ii) of the lower of the amounts specified in subsection (4)( d )(i) and (ii). (6AA) In subsections (2A) and (4A) — ( a ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of those subsections applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of those subsections applicable to the remaining year of assessment are each substituted with “$400,000”; and ( c ) to avoid doubt — (i) if the person does not carry on any trade or business during the basis period for the year of assessment 2016, no deduction may be made from the substituted amount in subsection (2A)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (2A)( a )(i) and (ii), or from the substituted amount in subsection (4A)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (4A)( a )(i) and (ii); and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2017, no deduction may be made from the substituted amount in subsection (2A)( c )(ii) of the lower of the amounts specified in subsection (2A)( b )(i) and (ii), or from the substituted amount in subsection (4A)( c )(ii) of the lower of the amounts specified in subsection (4A)( b )(i) and (ii). [37/2014] (6A) For the purposes of subsections (1), (2), (2A), (4) and (4A), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has, during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), incurred expenditure on the leasing of one or more PIC automation equipment under a qualifying lease or leases and (if applicable) the provision of one or more PIC automation equipment, in respect of such firms for the purposes of his or her trade or business, the deductions and allowances that may be allowed to him or her for that expenditure in respect of all of his or her trades and businesses must not exceed the amount computed in accordance with subsection (1), (2), (2A), (4) or (4A) (as the case may be) for that year of assessment. [37/2014] (6B) For the purposes of subsections (1), (2), (2A), (4) and (4A), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), incurred expenditure on the leasing of one or more PIC automation equipment under a qualifying lease or leases and (if applicable) the provision of one or more PIC automation equipment, for the purposes of its trade or business, the aggregate of the deductions and allo


document_id: ita-1947
provision_ref: s14R
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14R
title:
Deduction for expenses incurred before first dollar of income from trade, business, profession or vocation

content:
14R. —(1) Subject to section 14X, a person who — ( a ) derives the first dollar of income from a trade, business, profession or vocation in an applicable basis period; and ( b ) incurs a previous expense for which the person would have been allowed a deduction or further deduction under a provision of this Part if the person had commenced the trade, business, profession or vocation by the time it is incurred, is allowed the deduction or further deduction for the previous expense under and in accordance with that provision. [34/2016] (2) For the purposes of subsection (1) — ( a ) a previous expense is any outgoing or expense incurred for the purpose of that trade, business, profession or vocation at any time before the date the person derives that first dollar of income, but no earlier than 12 months before the first day of the applicable basis period (called in this section the first day); ( b ) the person is deemed to have commenced the person’s trade, business, profession or vocation on the first day; and ( c ) any previous expense incurred by the person before the first day but no earlier than 12 months before that day is deemed to have been incurred by the person on that day. (3) To avoid doubt — ( a ) subsection (1) is subject to any other requirement to be satisfied under the relevant provision of this Part before the deduction or further deduction may be allowed; and ( b ) a deduction or further deduction that may be or has been allowed by virtue of subsection (1) is considered for the purposes of this Act as one that may be or has been allowed under the relevant provision of this Part. (4) Subsection (1) does not apply to the business of making investments carried out by a company or trustee of a property trust, to which section 10D applies. (5) Subsection (1) is without prejudice to any provision of this Part allowing the deduction or further deduction of any expense or outgoing incurred at an earlier point in time. (6) In this section — ( a ) a reference to an applicable basis period is a reference to the basis period for the year of assessment 2012 or a subsequent year of assessment; and ( b ) a reference to a provision of this Part includes a reference to regulations made under a provision of this Part, but excludes this section. [14U


document_id: ita-1947
provision_ref: s14S
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14S
title: Deduction for amortisation of intangible asset created under public‑private partnership arrangement
content:
14S. —(1) Where — ( a ) a person provides services under a public‑private partnership arrangement — (i) that is the subject of a contract entered into between the Government or any approved statutory body and any person; and (ii) to which INT FRS 112 or SFRS(I) INT 12 applies; ( b ) section 10E(1A) or (1C) applies to the person in respect of those services; ( c ) the person recognises in the person’s financial statements, prepared in accordance with INT FRS 112 or SFRS(I) INT 12 (as the case may be), an intangible asset as having been created in the course of providing the services; and ( d ) in accordance with FRS 38 or SFRS(I) 1‑38 (as the case may be), amortisation of the asset is recognised in the person’s financial statements for the basis period for the year of assessment 2012 or any subsequent year of assessment, then the amount of the amortisation that is recognised in the person’s financial statements as an expense in accordance with FRS 38 or SFRS(I) 1‑38 (as the case may be), is allowed to the person as a deduction against an amount that is deemed as income derived by that person for that basis period under section 10E(1A) or (1C). [32/2019] (2) In this section — “FRS 38” and “SFRS(I) 1‑38” mean the financial reporting standards known respectively as — ( a ) Financial Reporting Standard 38 (Intangible Assets); and ( b ) Singapore Financial Reporting Standard (International) 1‑38 (Intangible Assets), that are made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time; [Act 36 of 2022 wef 01/04/2023] “INT FRS 112” and “SFRS(I) INT 12” have the meanings given by section 10E(2). [14V [32/2019]


document_id: ita-1947
provision_ref: s14T
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14T
title: Deduction for expenditure on licensing intellectual property rights
content:
14T. —(1) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2013, 2014 or 2015, there is allowed, in respect of all of the person’s trades and businesses and in addition to the deduction allowed under section 14 or 14C (as the case may be), a deduction for expenditure incurred during the basis period for the purposes of those trades and businesses on the licensing from another person of any qualifying intellectual property rights that is computed in accordance with the formula where A is — ( a ) for the year of assessment 2013, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2014, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2015, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (2) Despite anything in this section or section 19B, where a person has, during the basis period for any year of assessment between the years of assessment 2013 and 2015 (both years inclusive), incurred both expenditure on the licensing from another person of any qualifying intellectual property rights and expenditure on the acquisition of any intellectual property rights, the aggregate of the expenditure which may be given a deduction under subsection (1) and the expenditure which may be given an allowance under section 19B(1B) must not exceed — ( a ) in the case of the year of assessment 2013, the lower of the following: (i) the aggregate of all such expenditure; (ii) $1,200,000; ( b ) in the case of the year of assessment 2014, the lower of the following: (i) the aggregate of all such expenditure; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) in the case of the year of assessment 2015, the lower of the following: (i) the aggregate of all such expenditure; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). (3) In subsections (1) and (2) — ( a ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2013 and 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of those subsections applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2013 and 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of those subsections applicable to the remaining year of assessment are each substituted with “$400,000”; and ( c ) to avoid doubt — (i) if the person does not carry on any trade or business during the basis period for the year of assessment 2013, no deduction may be made from the substituted amount in subsection (1)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (1)( a )(i) and (ii), or from the substituted amount in subsection (2)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (2)( a )(i) and (ii); and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2014, no deduction may be made from the substituted amount in subsection (1)( c )(ii) of the lower of the amounts specified in subsection (1)( b )(i) and (ii), or from the substituted amount in subsection (2)( c )(ii) of the lower of the amounts specified in subsection (2)( b )(i) and (ii). (4) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2016, 2017 or 2018, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14 or 14C (as the case may be), a deduction for expenditure incurred during the basis period for the purposes of those trades and businesses on the licensing from another person of any qualifying intellectual property rights that is computed in accordance with the formula where A is — ( a ) for the year of assessment 2016, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2017, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2018, the lower of the following: (i) such expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (4A) Despite anything in this section or section 19B, where a person has, during the basis period for any year of assessment between the years of assessment 2016 and 2018 (both years inclusive), incurred both expenditure on the licensing from another person of any qualifying intellectual property rights and expenditure on the acquisition of any intellectual property rights, the aggregate of the expenditure which may be given a deduction under subsection (4) and the expenditure which may be given an allowance under section 19B(1BAA) must not exceed — ( a ) in the case of the year of assessment 2016, the lower of the following: (i) the aggregate of all such expenditure; (ii) $1,200,000; ( b ) in the case of the year of assessment 2017, the lower of the following: (i) the aggregate of all such expenditure; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) in the case of the year of assessment 2018, the lower of the following: (i) the aggregate of all such expenditure; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (4B) In subsections (4) and (4A) — ( a ) if the person does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of those subsections applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of those subsections applicable to the remaining year of assessment are each substituted with “$400,000”; and ( c ) to avoid doubt — (i) if the person does not carry on any trade or business during the basis period for the year of assessment 2016, no deduction may be made from the substituted amount in subsection (4)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (4)( a )(i) and (ii), or from the substituted amount in subsection (4A)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (4A)( a )(i) and (ii); and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2017, no deduction may be made from the substituted amount in subsection (4)( c )(ii) of the lower of the amounts specified in subsection (4)( b )(i) and (ii), or from the substituted amount in subsection (4A)( c )(ii) of the lower of the amounts specified in subsection (4A)( b )(i) and (ii). [37/2014] (4C) For the purposes of subsections (1) and (4), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has, during the basis period for any year of assessment between the years of assessment 2013 and 2018 (both years inclusive), incurred expenditure on the licensing from another person of any qualifying intellectual property rights in respect of such firms for the purposes of his or her trade or business, the deductions that may be allowed to him or her for that expenditure in respect of all of his or her trades and businesses must not exceed the amount computed in accordance with subsection (1) or (4) (as the case may be) for that year of assessment. [37/2014] (5) For the purposes of subsections (1), (2), (4) and (4A), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the years of assessment 2013 and 2018 (both years inclusive), incurred expenditure on the licensing from another person of any qualifying intellectual property rights and (if applicable) the acquisition of any intellectual property rights, for the purposes of its trade or business, the aggregate of the deductions and allowances that may be allowed to all the partners of the partnership for that expenditure in respect of all of the trades and businesses of the partnership must not exceed the amount computed in accordance with subsection (1), (2), (4) or (4A) (as the case may be) for that year of assessment. [37/2014] (6) No deduction is allowed under this section in respect of — ( a ) any expenditure which is not allowed as a deduction under section 14 or 14C, as the case may be; ( b ) any expenditure incurred by a person on licensing from its related party carrying on any trade or business in Singapore, of any qualifying intellectual property rights, where such rights were acquired or developed (in whole or in part) by the related party during the basis period relating to the year of assessment 2011 or any subsequent year of assessment; or ( c ) any qualifying intellectual property rights for which a writing‑down allowance has been previously made to that person under section 19B. (7) The Minister may by order exempt a person from subsection (6)( b ) in respect of such transaction as may be specified in the order. (8) In this section — “intellectual property rights” has the meaning given by section 19B(11); “qualifying intellectual property rights” means intellectual property rights but excludes the right to do or authorise the doing of anything which would, but for that right, be an infringement of — ( a ) any trade mark; or ( b ) any rights to the use of software. [Act 33 of 2022 wef 04/11/2022] [ Deleted by Act 33 of 2022 wef 04/11/2022 ] (9) In this section, a reference to expenditure incurred on the licensing from another person of qualifying intellectual property rights or the acquisition of intellectual property rights excludes any such expenditure to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board. (10) In this section, a reference to expenditure incurred on the licensing from another person of qualifying intellectual property rights means the licence fees and excludes — ( a ) expenditure for the transfer of ownership of any of those rights; and ( b ) legal fees and other costs related to the licensing of such rights. [14W


document_id: ita-1947
provision_ref: s14U
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14U
title: Enhanced deduction for expenditure on licensing intellectual property rights
content:
14U. —(1) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for any year of assessment between the years of assessment 2019 and 2028 (both years inclusive), there is to be allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14 or 14C (as the case may be), a deduction of the amount of the expenditure incurred during the basis period for the purposes of those trades and businesses on the licensing from another person of any qualifying intellectual property rights, up to $100,000. [45/2018] [Act 30 of 2023 wef 30/10/2023] (1A) For the purpose of ascertaining the income of a person — ( a ) who is a qualifying person for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive); and ( b ) who carries on a trade or business during the basis period for that year of assessment, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14 or 14C (as the case may be) and in lieu of subsection (1), a deduction for expenditure incurred during that basis period for the purposes of those trades and businesses on the licensing from another person of any qualifying intellectual property rights, computed in accordance with the formula where A is the lower of the following: ( a ) the expenditure incurred during that basis period; ( b ) $400,000. [Act 30 of 2023 wef 30/10/2023] (1B) Despite subsection (1A) and section 19B, where the qualifying person has, during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), incurred both — ( a ) expenditure on the licensing from another person of any qualifying intellectual property rights; and ( b ) expenditure on the acquisition of any intellectual property rights, the total of the expenditure which may be given a deduction under subsection (1A) and the expenditure which may be given an allowance under section 19B(1AD), must not exceed $400,000 for that year of assessment. [Act 30 of 2023 wef 30/10/2023] (1C) In this section, a person is a qualifying person for a year of assessment if — ( a ) where the person is a company that is not part of a group — the person derives less than $500 million in gross revenue from all of its trades and businesses in the basis period for that year of assessment; ( b ) where the person is a company that is part of a group — all the entities in the group derive a total of less than $500 million in gross revenue from all of the entities’ trades and businesses in that basis period; ( c ) where the person is an individual proprietor — the person derives less than $500 million in gross revenue in that basis period from all of the person’s trades and businesses that are carried on through one or more individual proprietorships; ( d ) where the person is a partner of a partnership, and either the partnership is under the control of a single partner who is an individual or no single partner has control over the partnership — the partnership derives less than $500 million in gross revenue from all of the partnership’s trades and businesses in that basis period; or ( e ) where the person is a partner of a partnership, and the partnership is under the control of a single partner that is a company — the partnership, the company and all other entities in the group of which the partnership and the company are parts derive a total of less than $500 million in gross revenue from all of their trades and businesses in that basis period. [Act 30 of 2023 wef 30/10/2023] (1D) In subsection (1C)( d ) and ( e ), whether or not a partnership is under the control of a partner is determined in accordance with FRS 110. [Act 30 of 2023 wef 30/10/2023] (1E) In subsections (1C) and (1D) — “FRS 110” means the financial reporting standard known as Financial Reporting Standard 110 (Consolidated Financial Statements) that is treated as made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time; “group” means a group of entities (whether incorporated or registered in Singapore or elsewhere) comprising a parent and its subsidiaries within the meaning of FRS 110. [Act 30 of 2023 wef 30/10/2023] (2) For the purposes of subsections (1) and (1A), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has, during the basis period for any year of assessment between the years of assessment 2019 and 2028 (both years inclusive), incurred expenditure on the licensing from another person of any qualifying intellectual property rights in respect of such firms for the purposes of the individual’s trade or business, the deductions that may be allowed to the individual for that expenditure in respect of all of the individual’s trades and businesses must not exceed the maximum amount mentioned in subsection (1), or the amount computed in accordance with subsection (1A) as qualified by subsection (1B), as the case may be. [45/2018] [Act 30 of 2023 wef 30/10/2023] (3) For the purposes of subsections (1) and (1A), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the years of assessment 2019 and 2028 (both years inclusive), incurred expenditure on the licensing from another person of any qualifying intellectual property rights for the purposes of the partnership’s trade or business, the deductions that may be allowed to all the partners of the partnership for that expenditure in respect of all of the trades and businesses of the partnership must not exceed the maximum amount mentioned in subsection (1), or the amount computed in accordance with subsection (1A) as qualified by subsection (1B), as the case may be. [45/2018] [Act 30 of 2023 wef 30/10/2023] (4) No deduction may be allowed to a person under this section in respect of — ( a ) any expenditure that is not allowed as a deduction under section 14 or 14C, as the case may be; ( b ) any expenditure incurred by that person on licensing from its related party, of any qualifying intellectual property rights, where such rights were acquired or developed (in whole or in part) by the related party; or ( c ) any qualifying intellectual property rights for which a writing‑down allowance has been previously made to that person under section 19B. [45/2018] (5) The Minister may by order exempt a person from subsection (4)( b ) in respect of such transaction as may be specified in the order. [45/2018] (6) In this section, “qualifying intellectual property rights” has the meaning given by section 14T(8). [45/2018] [Act 33 of 2022 wef 04/11/2022] (7) In this section, a reference to expenditure incurred on the licensing from another person of qualifying intellectual property rights excludes any such expenditure to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board. [45/2018] (8) In this section — “expenditure incurred on the licensing from another person of qualifying intellectual property rights” means the licence fees but excludes — ( a ) expenditure for the transfer of ownership of any of those rights; and ( b ) legal fees and other costs related to the licensing of such rights; “individual proprietor” has the meaning given by section 2(1) of the Business Names Registration Act 2014. [Act 30 of 2023 wef 30/10/2023] [14WA [45/2018]


document_id: ita-1947
provision_ref: s14V
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14V
title: Deduction for expenditure incurred to comply with statutory and regulatory requirements
content:
14V. —(1) For the purpose of ascertaining the income of any person for the basis period for the year of assessment 2014 or any subsequent year of assessment, the following expenditure, not being capital expenditure, incurred during the basis period by that person is allowed as a deduction for that year of assessment, if the Comptroller is satisfied that the expenditure is incurred for the purpose of the business that is carried on in the production of the income: ( a ) expenditure incurred for the purpose of compliance by that person with any written law of Singapore or another country; ( b ) expenditure incurred for the purpose of compliance by that person with any code, standard, rule, requirement or other document issued by the Government, a public authority established by or under any public Act, or by the government or a public authority of another country, or by a securities exchange; ( c ) expenditure incurred — (i) to study the impact of any proposed law referred to in paragraph ( a ) or proposed document referred to in paragraph ( b ); (ii) to prevent or to detect any non‑compliance with any law referred to in paragraph ( a ) or document referred to in paragraph ( b ); (iii) to voluntarily comply with a requirement of any law referred to in paragraph ( a ) or document referred to in paragraph ( b ), even though the person does not need to comply with the requirement. [37/2014] (2) No deduction is allowed under this section for — ( a ) any expenditure which is deductible under any other provision of this Act; or ( b ) any fine or penalty imposed or security deposit forfeited for a breach of a requirement of any law referred to in subsection (1)( a ) or document referred to in subsection (1)( b ), including any sum paid to compound any offence. [14X [37/2014]


document_id: ita-1947
provision_ref: s14W
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14W
title: Deduction for expenditure incurred by individual in deriving passive rental income in Singapore
content:
14W. —(1) This section applies for the purpose of ascertaining an individual’s income for the basis period for the year of assessment 2016 or a subsequent year of assessment from the letting of a residential property or a part of a residential property in Singapore (not being an excluded property for that basis period), that is chargeable to tax under section 10(1)( f ) (called in this section rental income). [2/2016] (2) Despite any other provisions in this Part, if there are any outgoings or expenses deductible against the rental income under any provision of this Part apart from section 14(1)( a ), then there is to be deducted, in lieu of those outgoings or expenses, an amount of expenses computed in accordance with the formula where A is 15% or such other percentage as may be prescribed under section 7; and B is the gross amount of the rental income from the residential property derived in the basis period for that year of assessment. [2/2016] (3) This section does not apply to — ( a ) an individual who has made an election under subsection (4) for this section not to apply to the individual’s rental income derived in the basis period for the year of assessment in question; ( b ) any rental income derived by an individual through a partnership; and ( c ) any rental income derived by an individual acting in the capacity of a trustee of a trust. [2/2016] (4) An individual may, in such form and manner and within such time as the Comptroller may determine, make an election to the Comptroller for this section not to apply to all of the individual’s rental income derived in the basis period for a particular year of assessment. [2/2016] (5) If an individual derives rental income, other than income referred to in subsection (3)( b ) or ( c ), from more than one residential property (not being excluded properties for the basis period) in a basis period, the individual may not make an election under subsection (4) in respect of only one or some of those properties. [2/2016] (6) In this section — “excluded property”, in relation to a basis period, means a residential property which, at any time during the period rental income is derived from the property by the individual in question, is permitted under the Planning Act 1998 to be used whether wholly or in part for any purpose that is not a residential purpose; “residential property” means — ( a ) any detached house, semi‑detached house or terrace house; or ( b ) any part of a building (such as a flat or a condominium unit) constructed or adapted for human habitation, that has a single annual value ascribed to it in the Valuation List prepared under section 10 of the Property Tax Act 1960, and is permitted under the Planning Act 1998 to be used for a residential purpose, and includes such other premises as may be prescribed as residential property, but (to avoid doubt) excludes premises that are so permitted for use as a dormitory. [2/2016] (7) In this section, a property or part of a property is permitted under the Planning Act 1998 to be used for a particular purpose if — ( a ) it is permitted by a written permission granted under section 14 of that Act to be used for that purpose; ( b ) it is authorised by a notification under section 21(6) of that Act to be used for that purpose; or ( c ) such use (being an existing use of the property or part and not being the subject of a written permission granted under section 14 of that Act or a notification under section 21(6) of that Act) was a use to which the building or part was put on 1 February 1960, and the building or part has not been put to any other use since that date. [14Y [2/2016]


document_id: ita-1947
provision_ref: s14X
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14X
title: Attribution of deductible expenses incurred before commencement of trade, etc.
content:
14X. —(1) This section applies where — ( a ) a person derives the first dollar of income from a trade, business, profession or vocation in a basis period; ( b ) the person incurs an expense — (i) before the date the person derives the first dollar of income mentioned in paragraph ( a ); but (ii) on or after 25 March 2016; and ( c ) for the purpose of ascertaining the person’s income from that trade, business, profession or vocation in that basis period, a deduction may be allowed under a provision of this Part for that expense by reason of section 14R. [34/2016] (2) This section also applies where — ( a ) a person commences a trade, business or profession in a basis period; ( b ) the person incurs an expense — (i) before the date the person commences the trade, business or profession; but (ii) on or after 25 March 2016; and ( c ) for the purpose of ascertaining the person’s income from that trade, business or profession in that basis period, a deduction may be allowed under section 14A, 14C, 14EA, 14EB, 14N or 14P by reason of section 14A(3), 14C(2), 14EA(8), 14EB(12), 14N(4) or 14P(5), as the case may be. [34/2016] [Act 30 of 2023 wef 30/10/2023] [Act 25 of 2025 wef 19/02/2025] (3) Where the person’s income from that trade, business, profession or vocation (as the case may be) in that basis period comprises any 2 or all of the following: ( a ) normal income; ( b ) concessionary income; ( c ) exempt income, the deduction for the expense is to be allowed in the following manner: ( d ) where the Comptroller is of the opinion that — (i) where the expense is one mentioned in subsection (1) — it is incurred in the production of the normal income only; or (ii) where the expense is one mentioned in subsection (1) or (2) and is incurred before the commencement of the trade, business, profession or vocation — it would have been incurred in the production of the normal income had it been incurred after such commencement, the expense is to be deducted against the normal income; ( e ) where the Comptroller is of the opinion that — (i) where the expense is one mentioned in subsection (1) — it is incurred in the production of the concessionary income only; or (ii) where the expense is one mentioned in subsection (1) or (2) and is incurred before the commencement of the trade, business, profession or vocation — it would have been incurred in the production of the concessionary income had it been incurred after such commencement, the expense is to be deducted against the concessionary income; ( f ) where the Comptroller is of the opinion that — (i) where the expense is one mentioned in subsection (1) — it is incurred in the production of the exempt income only; or (ii) where the expense is one mentioned in subsection (1) or (2) and is incurred before the commencement of the trade, business, profession or vocation — it would have been incurred in the production of the exempt income had it been incurred after such commencement, the expense is to be deducted against the exempt income; ( g ) in any other case, the expense is to be deducted against the normal income, concessionary income and exempt income (whichever is applicable), in the respective proportions that such part of the normal income, concessionary income and exempt income bear to such part of the total income from that trade, business, profession or vocation in the same basis period, as the Comptroller considers reasonable. [34/2016] (4) Where the person’s income from that trade, business, profession or vocation in that basis period comprises only concessionary income or only exempt income, the expense is to be deducted against that income. [34/2016] (5) In this section — “concessionary income” means income that is subject to a concessionary rate of tax as defined in section 14C(5); “exempt income” means income that is exempt from tax under this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967; “normal income” means income that is subject to tax at the rate of tax in section 42(1) or 43(1), as the case may be. [14Z [34/2016]


document_id: ita-1947
provision_ref: s14Y
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14Y
title:
Further or double deduction for qualifying expenditure on issue of debentures and making available debentures for secondary trading

content:
14Y. —(1) Where the Comptroller is satisfied that qualifying expenditure in connection with — ( a ) an issue of post‑seasoning debentures offered in reliance on an exemption under the Post‑seasoning Debentures Regulations within 5 years starting from the date of issue of the corresponding seasoned debentures, being a date falling within the period between 19 May 2016 and 18 May 2021 (both dates inclusive); ( aa ) an issue of qualifying debentures (other than post‑seasoning debentures mentioned in paragraph ( a )) during the period between 19 May 2016 and 18 May 2021 (both dates inclusive); or ( b ) making available potential seasoned debentures for secondary trading within 5 years starting from the date of their issue (being a date falling within the period between 19 May 2016 and 18 May 2021 (both dates inclusive)), has been incurred on or after 19 May 2016 by a person carrying on a trade or business in Singapore, that person is to be allowed — ( c ) where the expenditure is allowable as a deduction under section 14, a further deduction of the amount of such expenditure; or ( d ) where the expenditure is not allowable as a deduction under section 14, a deduction equal to twice the amount of such expenditure. [34/2016; 27/2021] (1A) Where the Comptroller is satisfied that qualifying expenditure has been incurred on or after 19 May 2021 by a person carrying on a trade or business in Singapore in connection with — ( a ) an issue of post‑seasoning debentures offered in reliance on an exemption under the Post‑seasoning Debentures Regulations within 5 years starting from the date of issue of the corresponding seasoned debentures that is a date falling within the period between 19 May 2021 and 31 December 2026 (both dates inclusive), being post‑seasoning debentures that are credit‑rated as at the date they are issued; ( b ) an issue of qualifying debentures (other than post‑seasoning debentures mentioned in paragraph ( a )) during the period between 19 May 2021 and 31 December 2026 (both dates inclusive), being debentures that are credit‑rated as at the date they are issued; or ( c ) making available potential seasoned debentures for secondary trading within 5 years starting from the date of their issue that is a date falling within the period between 19 May 2021 and 31 December 2026 (both dates inclusive), being debentures that are credit‑rated as at the date they are so made available, that person is to be allowed — ( d ) where the expenditure is allowable as a deduction under section 14 — a further deduction of the amount of the expenditure; or ( e ) where the expenditure is not allowable as a deduction under section 14 — a deduction equal to twice the amount of the expenditure. [27/2021] (2) The maximum amount of qualifying expenditure that may be allowed a deduction under this section is — ( a ) subject to paragraphs ( b ) and ( c ), $500,000 for each issue of qualifying debentures or making available of potential seasoned debentures for secondary trading; ( b ) subject to paragraph ( c ), $500,000 for both the issue of potential seasoned debentures and the making available of the same debentures for secondary trading; and ( c ) $1,000,000 per person, irrespective of the number of times the person issues qualifying debentures or makes available potential seasoned debentures for secondary trading. [34/2016] (3) It is a condition for allowing a deduction to a person under this section in respect of an issue of potential seasoned debentures, that they are made available for secondary trading within a period of one year starting from the date of their issue (called in this section the window period). [34/2016] (4) If the condition in subsection (3) is not satisfied, the total deductions under this section already allowed to the person in respect of that issue are treated as the person’s income for the year of assessment relating to the basis period in which the first day after the end of the window period falls. [34/2016] (5) Subsections (3) and (4) do not affect the right of the person to be allowed a deduction under this section in relation to making available the potential seasoned debentures for secondary trading after the window period, except that the deduction may only be allowed in the year of assessment relating to the basis period in which those debentures are so made available. [34/2016] (6) In this section — “credit‑rated”, in relation to qualifying debentures, means qualifying debentures that are given at least one credit rating by Fitch Ratings, Moody’s, or Standard & Poor (S&P) Global; “offering document” means a prospectus, an offer circular, an information memorandum, a pricing supplement or any other document issued to investors in connection with an offer of debentures; “post‑seasoning debenture”, “retail investor” and “seasoned debenture” have the meanings given to those expressions in the Post‑seasoning Debentures Regulations; “Post‑seasoning Debentures Regulations” means the Securities and Futures (Offers of Investments) (Exemption for Offers of Post‑seasoning Debentures) Regulations 2016; “potential seasoned debentures” means debentures the offering documents for the offer of which include a statement to the effect that the debentures are intended to be made available on a securities exchange for trading by retail investors; “product highlights sheet” — ( a ) in relation to an offer of straight debentures, has the meaning given to it in the Straight Debentures Regulations; or ( b ) in relation to an offer of post‑seasoning debentures, has the meaning given to it in the Post‑seasoning Debentures Regulations; “qualifying debentures” means — ( a ) potential seasoned debentures; ( b ) post‑seasoning debentures offered in reliance on an exemption under the Post‑seasoning Debentures Regulations; or ( c ) straight debentures offered in reliance on an exemption under the Straight Debentures Regulations; “qualifying expenditure” means — ( a ) in relation to an issue of potential seasoned debentures, any of the following that are incurred in connection with the issue, and for the purpose of allowing the debentures to be made available for secondary trading, or for the purpose of the subsequent issue of post‑seasoning debentures: (i) professional fees for conducting due diligence; (ii) origination, underwriting and distribution fees; (iii) advertising and marketing expenses; ( b ) in relation to the making available of potential seasoned debentures for secondary trading, any of the expenditure mentioned in paragraph ( a )(i), (ii) and (iii) that are incurred in connection with making available the debentures for secondary trading; or ( c ) in relation to an issue of post‑seasoning debentures or straight debentures, any of the following that are incurred in connection with the issue: (i) professional fees for conducting due diligence; (ii) professional fees for the drafting and preparation of, and the printing costs of — (A) the product highlights sheet for the offer pertaining to the issue, in the case of an issue of post‑seasoning debentures; or (B) the product highlights sheet and simplified disclosure document for the offer pertaining to the issue, in the case of an issue of straight debentures; (iii) origination, underwriting and distribution fees; (iv) advertising and marketing expenses, but excludes trustee fees, agency fees and Central Depository fees; “securities exchange” has the meaning given by section 2(1) of the Securities and Futures Act 2001; “simplified disclosure document” and “straight debenture” have the meanings given to those expressions in the Straight Debentures Regulations; “Straight Debentures Regulations” means the Securities and Futures (Offers of Investments) (Exemption for Offers of Straight Debentures) Regulations 2016. [34/2016; 27/2021] (7) In this section, a person makes available potential seasoned debentures for secondary trading if the person makes them available on a securities exchange for trading by retail investors. [14ZA [34/2016]


document_id: ita-1947
provision_ref: s14Z
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14Z
title: Deduction for expenditure for services or secondment to institutions of a public character
content:
14Z. —(1) Subject to this section, where the Comptroller is satisfied that a qualifying person has incurred, during the period between 1 July 2016 and 31 December 2026 (both dates inclusive), qualifying expenditure in respect of — ( a ) the provision during that period by a qualifying employee of the qualifying person, of services for the purpose of meeting needs in Singapore and that satisfy subsection (2) to an IPC; or [Act 30 of 2023 wef 30/10/2023] ( b ) the secondment during that period of a qualifying employee of the qualifying person to an IPC to provide services for the purpose of meeting needs in Singapore, then there is to be allowed to the qualifying person a deduction in accordance with subsection (1A) or (1B), as the case may be. [32/2019; 27/2021] [Act 30 of 2023 wef 30/10/2023] (1A) Where the qualifying expenditure is salary expenditure, the deduction that the qualifying person is to be allowed is as follows: ( a ) where — (i) the expenditure is allowable as a deduction under section 14; and (ii) the qualifying person did not opt in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate, a further deduction equal to 150% of the endorsed amount of the expenditure in addition to the deduction allowed under section 14; ( b ) where — (i) the expenditure is allowable as a deduction under section 14; and (ii) the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate, a further deduction equal to 150% of the computed salary amount in addition to the deduction allowed under section 14; ( c ) where — (i) the expenditure is not allowable as a deduction under section 14; and (ii) the qualifying person did not opt in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate, a deduction equal to 250% of the endorsed amount of the expenditure; ( d ) where — (i) the expenditure is not allowable as a deduction under section 14; and (ii) the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate, a deduction equal to 250% of the computed salary amount. [32/2019] (1B) Where the qualifying expenditure is not salary expenditure, the deduction that the qualifying person is to be allowed is as follows: ( a ) where the expenditure is allowable as a deduction under section 14 — a further deduction equal to 150% of the endorsed amount of the expenditure in addition to the deduction allowed under that section; ( b ) where the expenditure is not allowable as a deduction under section 14 — a deduction equal to 250% of the endorsed amount of the expenditure. [32/2019] (2) The services mentioned in subsection (1)( a ) must be — ( a ) the subject of an arrangement between the qualifying person and the IPC; and ( b ) provided on the instruction or request of the qualifying person. [34/2016] (3) The maximum amount of qualifying expenditure for which a qualifying person may be allowed the deduction under subsection (1) is $250,000 for each year of assessment. [34/2016] (4) The maximum amount of qualifying expenditure for which deductions may be allowed under subsection (1) in relation to each IPC is — ( a ) $25,000 for the period between 1 July 2016 and 31 December 2016 (both dates inclusive); ( b ) $50,000 for each of the calendar years between 2017 and 2023 (both years inclusive); and ( c ) $100,000 for each of the calendar years between 2024 and 2026 (both years inclusive), and this is irrespective of the number of qualifying persons claiming the deduction. [Act 30 of 2023 wef 30/10/2023] (5) Where 2 or more qualifying persons — ( a ) incur qualifying expenditure in relation to one IPC in a period or calendar year which in total exceeds the maximum amount for that period or calendar year under subsection (4); and ( b ) claim a deduction under subsection (1) for such expenditure, the deduction is to be allowed for such part or parts of the expenditure incurred by such person or persons that the IPC specifies to the Comptroller. [34/2016] (5A) Where a qualifying person opted in a declaration under subsection (6) to compute any salary expenditure at the prescribed hourly rate, then the computed salary amount — ( a ) is treated as the amount of that expenditure incurred by the qualifying person for the purposes of subsections (3) and (5); and ( b ) is to be used in computing the maximum amount of qualifying expenditure for which deductions may be allowed in relation to the IPC in question for the purposes of subsection (4). [32/2019] (6) A deduction under subsection (1) may only be allowed for any qualifying expenditure if — ( a ) before the date the services are first provided to the IPC in the basis period or the date of commencement of the secondment (as the case may be), the qualifying person makes a declaration, duly endorsed by the IPC and in a form determined by the Minister, regarding — (i) the nature of the services which the person has arranged with the IPC to be provided to the IPC, or the nature of the secondment, as the case may be; and (ii) the expected expenditure; ( b ) within such time as the Comptroller may specify, the IPC submits to the Comptroller a declaration by the qualifying person, in a form determined by the Minister, regarding — (i) the services provided to the IPC or the secondment to the IPC, as the case may be; and (ii) the relevant details specified in subsection (6A); and ( c ) the claim for the deduction is made in the manner determined by the Comptroller. [34/2016; 32/2019] (6A) In subsection (6)( b )(ii), the relevant details are — ( a ) where — (i) the qualifying expenditure is salary expenditure; and (ii) the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate, the actual number of hours for which the services were provided, as well as the number of those hours (which may be the same number or a smaller number of hours) endorsed by the IPC for the deduction under subsection (1); or ( b ) in all other cases, the amount of the actual qualifying expenditure incurred, as well as the part of that amount (which may be the full amount or a part of it) endorsed by the IPC for the deduction under subsection (1). [32/2019] (7) A deduction is not allowed under subsection (1) for any expenditure to the extent that it is or is to be subsidised by a grant or subsidy from the Government or a statutory board. [34/2016] (8) A deduction is not allowed under subsection (1) in relation to the provision of any service or any secondment if there is any agreement or understanding (whether oral or in writing and whether express or implied) that the IPC will confer a benefit of any kind on the qualifying person in return for the provision of the service or the secondment. [34/2016] (9) A deduction is not allowed under subsection (1) for any expenditure incurred on any activity that is or is to be subsidised, fully or partially, by a matching grant under the Share as One Programme administered by the National Council of Social Services. [34/2016] (10) The Comptroller may disallow in whole or in part a claim for a deduction under subsection (1) if the Comptroller is not satisfied that the endorsed amount of the expenditure or the endorsed number of hours (as the case may be) is reasonable having regard to the period and nature of the services provided or the period and nature of the secondment (as the case may be), and other relevant circumstances. [34/2016; 32/2019] (11) If, at any time after a qualifying person has been allowed a deduction under subsection (1) for any qualifying expenditure, the person is reimbursed for any amount of the expenditure, the amount of the deduction that corresponds to the expenditure reimbursed is treated as the person’s income for the year of assessment in which the Comptroller discovers the reimbursement. [34/2016] (11A) Where — ( a ) the qualifying expenditure mentioned in subsection (11) is salary expenditure; and ( b ) the computed salary amount of that expenditure was used to compute the amount of deduction allowed to the qualifying person, then, for the purpose of that subsection, the amount of the deduction that corresponds to the expenditure reimbursed is to be computed using the formula where — ( c ) A is the amount of the reimbursement; ( d ) B is the amount of the actual salary expenditure; ( e ) C is the prescribed hourly rate used in computing the computed salary amount; and ( f ) D is the endorsed number of hours used in computing the computed salary amount. [32/2019] (12) In this section — “central hirer”, in relation to a central hiring arrangement for a group of related parties, means the person who carries out hiring functions for those parties under the arrangement; “central hiring arrangement” means an arrangement for a group of related parties entered into for a bona fide commercial reason, where the hiring functions of the parties in the group are carried out by a single person; “computed salary amount”, in relation to any salary expenditure for the provision of any services by a qualifying employee, means an amount computed using the formula A &#215; B, where — ( a ) A is the endorsed number of hours for those services; and ( b ) B is the prescribed hourly rate for those services; “employee”, in relation to a qualifying person, includes an individual — ( a ) who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the qualifying person, and who is deployed to work solely for the qualifying person; and ( b ) whose salary and other remuneration is borne, directly or indirectly, by the qualifying person and not claimed by the central hirer as a deduction against the central hirer’s own income; “endorsed amount”, in relation to any expenditure, means the amount of the expenditure endorsed by an IPC under subsection (6A)( b ); “endorsed number of hours”, in relation to any services, means the number of hours for which those services are provided, as endorsed by an IPC under subsection (6A)( a ); “IPC” means an institution of a public character as defined in section 2(1); “prescribed hourly rate”, in relation to the provision of any services by a qualifying employee, means the rate prescribed by rules made under section 7 for those services; “qualifying employee”, in relation to a qualifying person, means an employee who, at the time of provision of the services or during the secondment (as the case may be), is under a contract of service with the qualifying person or (if the employee is engaged under a central hiring arrangement) the central hirer, but excludes — ( a ) where the qualifying person is a partnership, a partner of the partnership; and ( b ) where the qualifying person is a company, a shareholder of the company who is also a director of the company; “qualifying expenditure” — ( a ) in relation to the provision of services by a qualifying employee of a qualifying person to an IPC, means the sum of — (i) the amount of the salary expenditure incurred by the qualifying person for — (A) the period during which the employee provided those services that falls within the employee’s working hours; or (B) if the period during which the employee provided those services does not fall within the employee’s working hours, the period of the time off in lieu given to the employee; and (ii) the amount of the expenditure (not being capital expenditure) incurred by the qualifying person that was necessary for the provision of the services, excluding any private or domestic expense; and ( b ) in relation to the secondment of a qualifying employee of the qualifying person to an IPC, means the sum of — (i) the amount of the salary expenditure incurred by the qualifying person for the period of the secondment; and (ii) the amount of the expenditure (not being capital expenditure) incurred by the qualifying pers


document_id: ita-1947
provision_ref: s14ZA
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14ZA
title:
Deduction for expenditure incurred in deriving income from driving chauffeured private hire car or taxi

content:
14ZA. —(1) Subsection (2) applies for the purpose of ascertaining an individual’s income from driving a chauffeured private hire car or taxi for an authorised purpose that is chargeable to tax under section 10(1)( a ) (called in this section specified income), for the basis period for the year of assessment 2019 or a subsequent year of assessment. [45/2018] (2) Despite any other provisions in this Part, if there are any outgoings or expenses that are deductible against the specified income derived in the basis period, then there is to be deducted, in lieu of those outgoings or expenses, an amount computed in accordance with the formula A &#215; B, where — ( a ) A is 60% or such other percentage as may be prescribed by rules made under section 7; and ( b ) B is the gross amount of the specified income derived in the basis period. [45/2018] (3) However, subsection (2) — ( a ) only applies if, at the time the specified income is derived, the individual — (i) holds a vocational licence granted under section 110 of the Road Traffic Act 1961 authorising the individual to drive; or (ii) is otherwise permitted under that Act to drive, a chauffeured private hire car or taxi, as the case may be; and ( b ) does not apply if the individual has made an election under subsection (5) to disapply subsection (2) to the individual’s specified income derived in the basis period. [45/2018] (4) Subsection (2) also does not apply to any specified income derived by an individual as a partner in a partnership. [45/2018] (5) An individual may, in such form and manner and within such time as the Comptroller may determine, make an election to the Comptroller to disapply subsection (2) to all of the individual’s specified income derived in the basis period for a particular year of assessment. [45/2018] (6) If an individual derives specified income (other than income mentioned in subsection (4)) from driving more than one vehicle in a basis period, the individual may not make an election under subsection (5) in respect of only one or some of those vehicles. [45/2018] (7) Where an individual makes an election under subsection (5) to disapply subsection (2) to all of the individual’s specified income derived in the basis period for a particular year of assessment, then (despite anything in this Act) — ( a ) any outgoings or expenses incurred in that basis period and deductible against the specified income under any provision of this Part, that is in excess of the specified income, is not available as a deduction against any other income of the individual for that year of assessment; and ( b ) section 37 or 37D applies with the necessary modifications to such excess, except that the excess may only be deducted against the individual’s specified income that is derived in the basis period for a subsequent or preceding year of assessment, as the case may be. [45/2018] (8) In this section — “authorised purpose” means — ( a ) the carriage of passengers; or ( b ) the collection, conveyance and delivery, for reward, of any cargo not incidental to the carriage of any passenger in a motor vehicle, and any goods, article, food or baggage which is unaccompanied by any passenger travelling in the motor vehicle must be treated as cargo, but only if such collection, conveyance and delivery is approved by the Registrar pursuant to rules made under the Road Traffic Act 1961; “chauffeured private hire car” means a motor car that — ( a ) does not ply for hire on any road; ( b ) is hired, or made available for hire, under a contract (express or implied) for use as a whole with a driver for the purpose of conveying the hirer, and one or more passengers (if any), in that car; and ( c ) in respect of which a licence is issued under Part 5 of the Road Traffic Act 1961 for its use as a chauffeured private hire car; “Registrar” has the meaning given by section 2(1) of the Road Traffic Act 1961. [14ZC [45/2018]


document_id: ita-1947
provision_ref: s14ZB
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14ZB
title: Deduction for expenditure incurred by individual in deriving commission
content:
14ZB. —(1) This section applies for the purpose of ascertaining, for the basis period for the year of assessment 2020 or a subsequent year of assessment, a qualifying individual’s income by way of commission that is derived from carrying on one or more trades, businesses, professions or vocations that are prescribed by rules made under section 7 (called in this section a prescribed activity or activities), in respect of which there are outgoings or expenses that are deductible under this Part. [32/2019] (2) Despite any other provision in this Part, there is to be deducted, in lieu of those outgoings or expenses, an amount computed in accordance with the formula A &#215; B, where — ( a ) A is 25% or such other percentage as may be prescribed by rules made under section 7; and ( b ) B is the gross amount of the individual’s commission derived from carrying on a prescribed activity or (if the individual carries on more than one prescribed activity in the basis period) all of those prescribed activities in the basis period, being commission in respect of which there are outgoings or expenses that are deductible under this Part. [32/2019] (3) However, subsection (2) does not apply to an individual who has made an election under subsection (4) to disapply subsection (2) to the individual’s commission derived from carrying on a prescribed activity or prescribed activities in the basis period. [32/2019] (4) An individual may, in such form and manner and within such time as the Comptroller may determine, make an election to the Comptroller to disapply subsection (2) to the individual’s commission derived from carrying on a prescribed activity or prescribed activities in the basis period for a particular year of assessment. [32/2019] (5) If the individual derived commission from carrying on more than one prescribed activity in the basis period in respect of which there are outgoings or expenses that are deductible under this Part, the individual may not make an election under subsection (4) in respect of only one or some of those prescribed activities. [32/2019] (6) In this section — “commission” means commission that is chargeable to tax under section 10(1)( a ), and includes such other payment as may be prescribed by rules made under section 7, but excludes any commission — ( a ) that is derived by the individual concerned as a partner of a partnership; or ( b ) that is prescribed by rules made under section 7 as not commission; “qualifying individual”, in relation to any basis period, means an individual who satisfies all of the following conditions: ( a ) the individual is resident in Singapore in the year of assessment relating to the basis period; ( b ) the individual derived commission from a prescribed activity or prescribed activities in the basis period, being commission in respect of which there are outgoings or expenses that are deductible under this Part, and the total amount of such commission does not exceed $50,000 or such amount as may be prescribed by rules made under section 7; ( c ) such other conditions as may be prescribed by rules made under section 7. [14ZD [32/2019]


document_id: ita-1947
provision_ref: s14ZC
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14ZC
title: Deduction for payments made to drivers of chauffeured private hire cars and taxis
content:
14ZC. —(1) Each provision in the first column of the following table applies for the purpose of ascertaining the income of a Tenth Schedule entity for the basis period for each year of assessment set out opposite that provision in the second column of the table: Provision Year of assessment Subsection (2) 2021 or 2022 Subsection (2A)( a ) 2022 or 2023 Subsection (2A)( b ) and ( c ) 2022 or a subsequent year of assessment Subsection (2A)( d ) 2023 or a subsequent year of assessment [27/2021] [Act 30 of 2023 wef 30/10/2023] (2) Despite any other provision in this Part, the following expenditure incurred by a Tenth Schedule entity during the period between 1 January 2020 and 31 December 2020 (both dates inclusive) is allowed as a deduction for the relevant year of assessment: ( a ) the value of any benefit given to a self‑employed individual who drives a chauffeured private hire car or taxi, that is given in connection with an amount received by the Tenth Schedule entity out of a payment made by the Government to the Special Relief Fund under the public scheme known as the Point‑to‑Point Support Package; ( b ) any monetary payment given by a Tenth Schedule entity to an individual who drives a chauffeured private hire car or taxi, that the Comptroller is satisfied is given to mitigate the individual’s loss of income arising from a COVID‑19 event. [41/2020] (2A) Despite any other provision in this Part, the following expenditure incurred by a Tenth Schedule entity is allowed as a deduction for the relevant year of assessment: ( a ) any monetary payment given during the period between 1 January 2021 and 31 December 2021 (both dates inclusive) by the Tenth Schedule entity to an individual who drives a chauffeured private hire car or taxi, that the Comptroller is satisfied is given to mitigate the individual’s loss of income arising from a COVID‑19 event; ( b ) the value of any benefit given on or after 1 January 2021 to an individual who drives a chauffeured private hire car or taxi, that is given in connection with an amount received by the Tenth Schedule entity out of a payment made by the Government from a fund established by the Government known as the COVID‑19 Driver Relief Fund; ( c ) any monetary payment given on or after 1 January 2021 by the Tenth Schedule entity to an individual who drives a chauffeured private hire car or taxi that is a petrol car or petrol‑electric car, that is given in connection with an amount received by the Tenth Schedule entity out of a payment made on behalf of the Government (known as the Additional Petrol Duty Rebate), that is part of the Budget Statement of the Government dated 16 February 2021; [Act 30 of 2023 wef 30/10/2023] ( d ) the value of any benefit given on or after 1 August 2022 by the Tenth Schedule entity to an individual who drives a chauffeured private hire car or taxi, that is given in connection with an amount received by the Tenth Schedule entity out of a payment made by or on behalf of the Government, pursuant to any other public scheme, or out of any fund, established by or on behalf of the Government for the benefit (whether exclusively or otherwise) of individuals who drive chauffeured private hire cars or taxis. [27/2021] [Act 30 of 2023 wef 30/10/2023] (2B) Despite any other provision in this Part, any monetary payment given by a person (other than an individual) who paid a tax under section 11 of the Road Traffic Act 1961 for a vehicle that is a petrol car or petrol‑electric car, to an individual who drives that vehicle as a chauffeured private hire car or taxi, in connection with an amount given to the person as a rebate against that tax on or after 1 August 2021, is allowed as a deduction against the income of the person for the basis period for the year of assessment 2022 or a subsequent year of assessment. [27/2021] (3) In this section — “chauffeured private hire car” has the meaning given to that term by section 14ZA(8); “COVID‑19 event” and “monetary payment” have the meanings given by section 13X(6); “petrol car” means a motor car which uses petrol as its source of power; “petrol‑electric car” means a motor car which uses either or both petrol and electricity as its source of power; “Tenth Schedule entity” means an entity set out in the Tenth Schedule. [14ZE [41/2020; 27/2021]


document_id: ita-1947
provision_ref: s14ZD
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14ZD
title: Deduction for payments made to lessees or licensees to mitigate impact of COVID‑19 event
content:
14ZD. —(1) Each provision in the first column of the following table applies for the purpose of ascertaining the income of a person set out opposite that provision in the second column of the table, for the basis period for each year of assessment set out opposite that income in the third column of the table: Provision Income Year of
assessment Subsection (2) Income derived by a person in the period between 1 January 2020 and 31 December 2020 (both dates inclusive) from the leasing or licensing of any immovable property in relation to which a remission of property tax is given by the Property Tax (Non‑Residential Properties) (Remission) Order 2020 2021 or 2022 Subsection (2A) Income derived by a person (being the lessor or licensor of a prescribed property) in the period between 1 January 2021 and 31 December 2021 (both dates inclusive) from the leasing or licensing of the prescribed property 2022 or 2023 [27/2021] (2) Despite any other provision in this Part, the following (whichever is applicable) is allowed as a deduction against that income for the relevant year of assessment: ( a ) the amount in the form of monetary payments of any benefit (as defined in the COVID‑19 (Temporary Measures) (Transfer of Benefit of Property Tax Remission) Regulations 2020) of the reduction in property tax as a result of the remission that the person (being the owner of the property) is required under section 29(2) of the COVID‑19 (Temporary Measures) Act 2020 to pass on to a lessee or licensee of the property in 2020; ( b ) the amount in the form of monetary payments that the person mentioned in paragraph ( a ) has passed on or has agreed to pass on to the lessee or licensee of the property in the year 2020, and by reason of which the person is exempt from section 29(2) of the COVID‑19 (Temporary Measures) Act 2020 under regulation 13(2) of the COVID‑19 (Temporary Measures) (Transfer of Benefit of Property Tax Remission) Regulations 2020; ( c ) the amount of any other monetary payments that the person makes in the year 2020 to the person’s lessee or licensee of that property, but only if the Comptroller is satisfied that the payments are intended to provide relief to the lessee or licensee from any economic hardship arising from a COVID‑19 event; ( d ) the total of the amounts in paragraphs ( a ), ( b ) and ( c ). [41/2020] (2A) Despite any other provision in this Part, the amount of any monetary payment made by the person in the year 2021 to the person’s lessee or licensee of the prescribed property, is allowed as a deduction against that income for the relevant year of assessment, if — ( a ) the payment is made pursuant to an undertaking given by the person to his, her or its lessor or licensor, to provide relief to the lessee or licensee from any economic hardship arising from a COVID‑19 event; or ( b ) the Comptroller is satisfied that the payment is intended to provide relief to the lessee or licensee from any economic hardship arising from a COVID‑19 event. [27/2021] (3) The total amount of deduction allowable under this section in relation to each lessee or licensee for each year of assessment must not exceed the total amount of rent or licence fee payable under the relevant lease agreement or licence agreement between the person and the lessee or licensee for the period between 1 January and 31 December (both dates inclusive) of the year 2020 or 2021 (whichever is applicable), or a part of that period, and falling within the basis period for that year of assessment, after taking into account any waiver or reduction of the rent or licence fee for that period. [41/2020; 27/2021] (4) In this section, “COVID‑19 event”, “monetary payment”, “owner” and “prescribed property”, in relation to immovable property, have the meanings given by section 13X(6). [14ZF [41/2020; 27/2021]


document_id: ita-1947
provision_ref: s14ZE
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14ZE
title: Deduction for expenditure incurred in obtaining or granting, etc., leases of immovable properties
content:
14ZE. —(1) Subject to subsections (3), (4) and (5), for the purpose of ascertaining the income of a person from the carrying on of a trade or business during the basis period for the year of assessment 2022 or any subsequent year of assessment, there is to be allowed a deduction for any expenditure incurred by the person during that basis period for the purpose of obtaining a lease, or renewing or extending a lease, of an immovable property that is used by the person for the purpose of the person’s trade or business. [27/2021] (2) Subject to subsections (4) and (5), for the purpose of ascertaining the rental income derived by a person from an immovable property that is chargeable to tax under section 10(1)( f ) during the basis period for the year of assessment 2022 or any subsequent year of assessment, there is to be allowed a deduction for any expenditure incurred by the person during that basis period for the purpose of granting the lease, or renewing or extending the lease, of the immovable property. [27/2021] (3) No deduction may be allowed under subsection (1) to a company or trustee of a property trust in the business of letting immovable properties in which the company or trustee has a proprietary interest (other than as a legal owner) and would receive consideration if the proprietary interest is disposed of or transferred, whether in whole or in part. [27/2021] (4) In subsections (1) and (2), expenditure incurred to obtain, grant, renew or extend a lease — ( a ) means any commission, legal fees, stamp duty, advertising expenses and such other expenditure as may be prescribed by rules made under section 7; but ( b ) excludes any outgoing or expense that is allowed as a deduction under section 14. [27/2021] (5) No deduction may be allowed under subsection (1) or (2) to a person in respect of — ( a ) any lease, or any renewal or extension of a lease, for a term that (excluding any option for the renewal or extension of the lease) exceeds 3 years; ( b ) any acquisition, grant, novation, transfer or assignment (however described) of a lease because of any acquisition, sale, transfer or restructuring of any business; or ( c ) a lease under an arrangement where the immovable property is sold by, and leased back to, the seller of the immovable property. [14ZG [27/2021]


document_id: ita-1947
provision_ref: s14ZF
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14ZF
title: Deduction for expenditure incurred on immovable property while vacant
content:
14ZF. —(1) This section applies where an immovable property used by a person to derive rental income chargeable to tax under section 10(1)( f ), in the basis period for the year of assessment 2022 or a subsequent year of assessment, is vacant during any part of the basis period. [27/2021] (2) Subject to subsection (3), for the purpose of ascertaining the rental income derived during the basis period by the person from the immovable property that is chargeable to tax under section 10(1)( f ), there is to be allowed a deduction for — ( a ) any expenditure incurred by the person for the repair, insurance, maintenance or upkeep of the immovable property while it is vacant during that basis period; and ( b ) any amount paid during that basis period in respect of property tax charged on that immovable property. [27/2021] (3) A deduction under subsection (2) is allowed to a person only if the Comptroller is satisfied that the person has made reasonable efforts in the circumstances to procure a lessee for the immovable property while it is vacant during the basis period. [14ZH [27/2021]


document_id: ita-1947
provision_ref: s14ZG
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14ZG
title: Deduction for qualifying training expenditure for years of assessment 2024 to 2028
content:
14ZG. —(1) Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction under section 14, a deduction for qualifying training expenditure incurred for the purposes of those trades and businesses computed in accordance with the formula where A is the lower of the following: ( a ) the qualifying training expenditure incurred during the basis period for that year of assessment; ( b ) $400,000. (2) No deduction is allowed to a person under this section in respect of any expenditure that is not allowed a deduction under section 14. (3) For the purposes of subsection (1), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has, during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), incurred qualifying training expenditure in respect of such firms for the purposes of the individual’s trade or business, the deduction that may be allowed to the individual for that expenditure in respect of all of the individual’s trades and businesses must not exceed the amount computed in accordance with subsection (1) for that year of assessment. (4) For the purposes of subsection (1), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), incurred qualifying training expenditure for the purposes of the partnership’s trade or business, the aggregate of the deductions that may be allowed to all the partners of the partnership for that expenditure in respect of all of the trades and businesses of the partnership must not exceed the amount computed in accordance with subsection (1) for that year of assessment. (5) In this section — “central hirer”, in relation to a central hiring arrangement for a group of related parties, means the person that carries out the hiring functions for those parties under the arrangement; “central hiring arrangement” means an arrangement for a group of related parties entered into for a bona fide commercial reason, where the hiring functions of the parties in the group are carried out by a single person; “eligible course” means a course that is attended by an employee of a person carrying on a trade or business and that is — ( a ) eligible for funding by the SkillsFuture Singapore Agency; and ( b ) specified on, or specified on an Internet website that is accessible from, a prescribed Internet website on the date of commencement of the course; [Act 35 of 2024 wef 27/11/2024] “employee”, in relation to a person carrying on a trade or business (called in this definition the first person), includes — ( a ) an individual — (i) who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the first person, and who is deployed to work solely for the first person; and (ii) whose salary and other remuneration (including training expenditure incurred in respect of the individual) is borne, directly or indirectly, by the first person and not claimed by the central hirer as a deduction against the central hirer’s own income; and ( b ) an individual, being an employee of another person that is a related party of the first person — (i) who is seconded to a position of the first person under a bona fide commercial arrangement to work solely for the first person; and (ii) whose salary and other remuneration (including training expenditure in respect of the individual) is borne, directly or indirectly, by the first person and not claimed by the other person as a deduction against the other person’s own income; “qualifying training expenditure”, in relation to a person carrying on a trade or business, means any course fee, certification fee and assessment fee approved by the SkillsFuture Singapore Agency for an eligible course for the purpose of this section, and that is paid (whether directly or in the form of a reimbursement of the employee for any payment made) by the person to a provider of the eligible course; “SkillsFuture Singapore Agency” means the SkillsFuture Singapore Agency established by section 3 of the SkillsFuture Singapore Agency Act 2016. (6) A reference in this section to qualifying training expenditure excludes any expenditure to the extent that it is or is to be subsidised by any grant or subsidy from the Government or a statutory board (including the SkillsFuture Singapore Agency). [Act 30 of 2023 wef 30/10/2023]


document_id: ita-1947
provision_ref: s14ZH
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14ZH
title: Deduction for expenditure incurred in deriving income from providing delivery services
content:
14ZH. —(1) This section applies for the purpose of ascertaining, for the basis period for the year of assessment 2024 or a subsequent year of assessment, a qualifying individual’s income from performing delivery services by prescribed means, that is chargeable to tax under section 10(1)( a ) and in respect of which there are outgoings or expenses that are deductible under this Part. (2) In this section, a qualifying individual’s income from performing delivery services does not include — ( a ) any income from delivery services not performed personally by the qualifying individual; and ( b ) any income from delivery services performed by the qualifying individual as an employee of another person. (3) Despite any other provision in this Part, there is to be deducted from a qualifying individual’s income for a basis period from performing delivery services by one or more prescribed means, in lieu of the outgoings or expenses that are deductible under this Part, the total of each sum computed by the formula A &#215; B in relation to each of those prescribed means (or a combination thereof), where — ( a ) A is the prescribed percentage for the prescribed means or combination of prescribed means; and ( b ) B is the individual’s gross income for the basis period from performing delivery services by the prescribed means or combination of prescribed means. (4) Subsection (3) does not apply if the qualifying individual’s gross income from performing delivery services by prescribed means exceeds $50,000 for the basis period. (5) Subsection (3) does not apply to a qualifying individual who has made an election under subsection (6) to disapply subsection (3) for the basis period. (6) A qualifying individual may, in such form and manner and within such time as the Comptroller may determine, make an election to the Comptroller to disapply subsection (3) to the individual’s income from performing delivery services by prescribed means that is derived in the basis period for a particular year of assessment. (7) In this section — “delivery services” means the collection, conveyance and delivery, for reward, of any cargo not incidental to the carriage of any passenger; “prescribed means”, in relation to the performance of delivery services, means such performance — ( a ) on foot; ( b ) by public transport; ( c ) by the use of a bicycle (whether power-assisted or not); ( d ) by the use of a motorised personal mobility device; ( e ) by the use of a motor cycle; or ( f ) by the use of a van; “prescribed percentage”, in relation to a prescribed means or combination of prescribed means, means the percentage prescribed in rules made under section 7 that applies to the prescribed means or combination of prescribed means; “qualifying individual”, in relation to any basis period, means an individual who performs delivery services by prescribed means only. [Act 30 of 2023 wef 30/10/2023]


document_id: ita-1947
provision_ref: s14ZI
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14ZI
title: Deduction for real estate investment trust units held by managers of real estate investment trusts
content:
14ZI. —(1) This section applies for the purpose of ascertaining, for the basis period for the year of assessment 2026 or a subsequent year of assessment, the income of a REIT manager. (2) Despite any other provision in this Part, where a REIT manager transfers any REIT units to an employee as remuneration, the amount deductible under section 14(1) for the REIT manager in respect of such remuneration is to be computed in accordance with subsections (3) to (6). (3) Subject to subsection (4), the amount deductible is the value at receipt of the REIT units transferred to the employee, less any amount payable by the employee for the REIT units. (4) Where any amount of profit, loss or expense of the REIT manager (as a qualifying person under section 34AA) in respect of the REIT units transferred to the employee had been previously brought into account for the purposes of sections 10, 14 and 37 in accordance with section 34AA, the amount deductible is to be adjusted by — ( a ) adding the total amount of profit in respect of those REIT units which had been brought to tax under this Act by virtue of section 34AA; and ( b ) subtracting the total amount of loss in respect of those REIT units which had been allowed as a deduction under this Act by virtue of section 34AA. (5) For the purpose of subsection (3), the value at receipt of the REIT units transferred to the employee is to be determined in accordance with one of the following methods: ( a ) on the basis that the REIT units acquired by the REIT manager at an earlier point in time are deemed to be transferred first; ( b ) on the basis of the formula where — (i) A is the number of REIT units transferred; (ii) B is the total number of REIT units held by the REIT manager immediately before the transfer; and (iii) C is the aggregate of the value at receipt of each of the REIT units in B; ( c ) on the basis that the aggregate value at receipt of all REIT units transferred to employees within a basis period, or a regular interval in a basis period, is ascertained by the formula where — (i) D is the number of REIT units so transferred within that basis period or interval; (ii) E is the total number of REIT units held by the REIT manager at the end of the preceding basis period, or at the end of the period equal in length to the regular interval immediately preceding that interval, as the case may be; (iii) F is the total number of REIT units acquired by the REIT manager within the firstmentioned basis period or interval; (iv) G is the aggregate of the value at receipt of each of the REIT units in E; and (v) H is the aggregate of the value at receipt of each of the REIT units in F; ( d ) on any other basis that the Comptroller considers to be reasonable, taking into account all the circumstances of the case. (6) Where a method in subsection (5) has been applied to determine the value at receipt of the REIT units transferred to the employee, that same method must be used to determine the amount of profit, loss or expense of the REIT manager in respect of those REIT units under subsection (4), and for this purpose — ( a ) C in subsection (5)( b ) is the aggregate amount of the profit, loss or expense of the REIT manager in respect of each of the REIT units in B in that provision; ( b ) G in subsection (5)( c ) is the aggregate amount of the profit, loss or expense of the REIT manager in respect of each of the REIT units in E in that provision; and ( c ) H in subsection (5)( c ) is the aggregate amount of the profit, loss or expense of the REIT manager in respect of each of the REIT units in F in that provision. (7) Where a method in subsection (5) has been applied to determine the value at receipt of the transferred REIT units for the basis period of any year of assessment, the same method must be applied for that purpose for the basis period of any subsequent year of assessment unless the Comptroller agrees otherwise. (8) In this section — “market value”, in relation to a REIT unit, means the amount that would be realised if the REIT unit had been sold on the open market or such other value as appears to the Comptroller to be reasonable in the circumstances; “regular interval”, in relation to a basis period, means one of a number of equal periods within the basis period — ( a ) where the aggregate of all of those equal periods is equal to the basis period; and ( b ) where the duration of each equal period — (i) in a case where the REIT manager has previously been allowed a deduction under this section, is the one previously adopted by the REIT manager for the purpose of this section; or (ii) in any other case, is any duration adopted by the REIT manager for the purpose of this section; “REIT” or “real estate investment trust” has the meaning given by section 43(10); “REIT manager”, in relation to a real estate investment trust, means an entity which has been appointed to manage the property of, or operate, the real estate investment trust; “REIT unit” means a unit in a REIT that a REIT manager has received from the trustee of that REIT as consideration for the services performed by the REIT manager in respect of that REIT; “value at receipt”, in relation to a REIT unit, means the market value of the REIT unit when it was received by the REIT manager from the trustee of the REIT. [Act 35 of 2024 wef 27/11/2024]


document_id: ita-1947
provision_ref: s14ZJ
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 14ZJ
title: Deduction for expenditure on green certificates and green credits
content:
14ZJ. —(1) A person carrying on a trade or business who surrenders any green certificates or green credits prescribed by rules made under section 7 is allowed, for the year of assessment relating to the basis period in which the person surrenders them, a deduction for any qualifying expenditure the person incurred for them during the basis period relating to the year of assessment 2026 or any subsequent year of assessment. (2) Qualifying expenditure, in relation to any green certificates or green credits, means — ( a ) any expenditure incurred for their acquisition, their registration with the relevant registry, their issue, or their transfer to the person concerned; ( b ) any expenditure incurred for their surrender; or ( c ) any expenditure incurred for such other matter as may be prescribed by rules made under section 7. (3) In this section, “surrender”, in relation to any green certificates or green credits, means to surrender or retire the green certificates or green credits, but excludes any activity as may be prescribed by rules made under section 7. [Act 25 of 2025 wef 08/12/2025]


document_id: ita-1947
provision_ref: s15
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 15
title: Deductions not allowed
content:
15. —(1) Despite the provisions of this Act, for the purpose of ascertaining the income of any person, no deduction is allowed in respect of — ( a ) domestic or private expenses except as provided in section 14(1)( g ); ( b ) any disbursements or expenses not being money wholly and exclusively laid out or expended for the purpose of acquiring the income; ( c ) any capital withdrawn or any sum employed or intended to be employed as capital except as provided in section 14(1)( h ); ( d ) any capital employed in improvements other than improvements effected in the replanting of a plantation; ( e ) any sum recoverable under an insurance or contract of indemnity; ( f ) rent or cost of repairs to any premises or part of premises not paid or incurred for the purpose of producing the income; ( g ) any amount paid or payable in respect of income tax in Singapore (including MTT and DTT), or in respect of any tax on income (by whatever name called) in any country outside Singapore; [Act 36 of 2024 wef 20/03/2025] ( ga ) any amount paid or payable in respect of any excluded top-up tax or qualified domestic minimum top-up tax; [Act 36 of 2024 wef 20/03/2025] ( h ) any amount paid or payable in respect of goods and services tax by the person if the person, being required to be registered under the Goods and Services Tax Act 1993, has failed to do so, or if the person is entitled under that Act to credit that amount of tax as an input tax; ( i ) any payment to any provident, savings, widows’ and orphans’ or other society or fund, including the Supplementary Retirement Scheme, except — (i) such payment made by an employer on behalf of the employer’s employee to the Central Provident Fund that is obligatory under the Central Provident Fund Act 1953; (ii) such payment made by an employer on behalf of the employer’s employee to the retirement account or special account of that employee in accordance with section 18 of the Central Provident Fund Act 1953; (ii a ) such payment made on or after 1 January 2026 by an employer on behalf of the employer’s employee directed to be paid to the medisave account of that employee in accordance with section 13B of the Central Provident Fund Act 1953; [Act 25 of 2025 wef 08/12/2025] (ii b ) such payment made by a platform operator on behalf of a platform worker of the platform operator that is obligatory under section 8A(1) of the Central Provident Fund Act 1953; [Act 30 of 2024 wef 01/01/2025] [Act 25 of 2025 wef 08/12/2025] (ii c ) such payment made by a platform operator on behalf of a platform worker of the platform operator to the retirement account or special account of that platform worker in accordance with section 18 of the Central Provident Fund Act 1953; [Act 30 of 2024 wef 01/01/2025] [Act 25 of 2025 wef 08/12/2025] (iii) such payment made by an employer on behalf of the employer’s employee to the SRS account of that employee up to the amount of the SRS contribution cap applicable to that employee as determined in accordance with regulations made under section 10G(11); and (iv) such payments as are allowed under section 14(1)( e ), ( f ), ( fb ) and ( fc ); [Act 30 of 2024 wef 01/01/2025] ( j ) any sum referred to in section 12(6) payable by any person outside Singapore to another person outside Singapore except where the sum is exempt from tax, or tax has been deducted and accounted for under section 45; ( k ) any outgoings and expenses, whether directly or in the form of reimbursements, and any claim for the cost of renewal incurred on or after 1 April 1998 in respect of a motor car (whether owned by the person or any other person) which is constructed or adapted for the carriage of not more than 7 passengers (exclusive of the driver) and the weight of which unladen does not exceed 3,000 kilograms except — (i) a taxi, but subject to subsection (2D); (ii) a motor car registered outside Singapore and used exclusively outside Singapore; (iii) a private hire car if the person is carrying on the business of hiring out cars and the private hire car is used by the person principally for hiring; (iv) a motor car which was registered before 1 April 1998 as a business service passenger vehicle for the purposes of the Road Traffic Act 1961; (v) a motor car registered on or after 1 April 1998 which is used principally for instructional purposes if the person is carrying on the business of providing driving instruction and holds a driving school licence or driving instructor’s licence issued under the Road Traffic Act 1961; (vi) a chauffeured private hire car used by the person (being an individual who holds a vocational licence granted under section 110 of the Road Traffic Act 1961 authorising the individual to drive, or who is otherwise permitted under that Act to drive, a chauffeured private hire car) other than as an employee of another, but subject to subsection (2E); and (vii) a chauffeured private hire car used principally by the person (not being an individual mentioned in sub‑paragraph (vi)) to carry on the business of providing chauffeur services, but subject to subsection (2F); ( l ) any outgoings and expenses incurred in respect of any designated unit trust within the meaning of section 35(14) if the person is a unit holder of such trust; ( m ) any amount of output tax paid or payable under the Goods and Services Tax Act 1993 which is borne by the person if the person is registered as a taxable person under that Act, but not any amount of output tax paid or payable on a reverse charge supply under section 14(2) of that Act, to the extent that credit of such amount as input tax is not allowed under that Act; ( n ) [ Deleted by Act 37 of 2014 ] ( o ) [ Deleted by Act 19 of 2013 ] ( p ) any outgoings and expenses, whether directly or in the form of reimbursements, incurred in respect of any right or benefit granted to any person to acquire shares on or after 1 January 2002 in any company, if the right or benefit is not granted by reason of any office or employment held in Singapore by the person; [Act 25 of 2025 wef 08/12/2025] ( q ) any outgoings and expenses, whether directly or in the form of reimbursements, incurred by any company in respect of any right or benefit granted to any person, by reason of any office or employment held in Singapore by that person, to acquire shares (other than treasury shares, or shares in respect of which the company is allowed a deduction under section 14M(7) or (8A) or 14MA(1)) of a holding company of that company; or [Act 25 of 2025 wef 08/12/2025] ( r ) any payment made, or any outgoings and expenses incurred, by the person in furtherance of, or in connection with, the commission of an offence under Part 3 of the Prevention of Corruption Act 1960 or section 161, 162, 163, 164, 165, 204B, 213, 214 or 215 of the Penal Code 1871. [Act 25 of 2025 wef 08/12/2025] [37/2014; 45/2018; 52/2018; 32/2019; 41/2020] (2) Subsection (1)( b ) and ( d ) does not apply to any expenditure which qualifies for deduction under section 14A, 14C, 14D, 14E, 14EA, 14EB, 14F, 14G, 14H, 14I, 14J, 14K, 14L, 14M, 14MA, 14N, 14P, 14S, 14T or 14U. [2/2016; 39/2017; 41/2020] [Act 30 of 2023 wef 30/10/2023] [Act 25 of 2025 wef 19/02/2025] [Act 25 of 2025 wef 08/12/2025] (2A) Subsection (1)( b ) does not apply to any expenditure which qualifies for deduction under section 14V, 14Z or 14ZJ. [37/2014; 34/2016] [Act 25 of 2025 wef 08/12/2025] (2B) Subsection (1)( b ) and ( c ) does not apply to any expenditure which qualifies for deduction under section 14Y. [34/2016] (2C) Besides subsection (1)( b ) and ( d ) (which is disapplied under subsection (2)), the other paragraphs of subsection (1) also do not apply to expenditure which qualifies for deduction under section 14C(1)( g ) or 14EB. [39/2017] [Act 25 of 2025 wef 19/02/2025] (2D) For the purposes of subsection (1)( k )(i) — ( a ) outgoings and expenses incurred on or after 12 November 2018 are only deductible if they are attributable to the use of the taxi for an authorised purpose; and ( b ) the cost of renewal in respect of the taxi incurred on or after that date is only deductible if the person is one to whom an allowance under section 19 may be made in respect of the taxi by reason of that person being one mentioned in section 19(5)( a )(i), (ii) or (iii). [45/2018] (2E) Subsection (1)( k )(vi) — ( a ) only applies to outgoings and expenses incurred in the basis period for the year of assessment 2019 or a subsequent year of assessment and that are attributable to the use of the chauffeured private hire car for an authorised purpose; and ( b ) does not apply to the cost of renewal in respect of the car. [45/2018] (2F) Subsection (1)( k )(vii) only applies to outgoings and expenses, and the cost of renewal in respect of the chauffeured private hire car, incurred in the basis period for the year of assessment 2021 or a subsequent year of assessment. [41/2020] (2G) Subsection (1)( b ) and ( c ) does not apply to any expenditure that qualifies for deduction under section 14ZE. [27/2021] (2H) Subsection (1)( b ) and ( f ) does not apply to any expenditure that qualifies for deduction under section 14ZF. [27/2021] (3) [ Deleted by Act 33 of 2022 wef 04/11/2022 ] (4) In this section, “authorised purpose” and “chauffeured private hire car” have the meanings given by section 14ZA(8). [45/2018]


document_id: ita-1947
provision_ref: s15A
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 15A
title: Limit on deduction allowed for leasing or licensing expenditure in 2020
content:
15A. —(1) No deduction is allowed in respect of expenditure incurred in the year 2020 by a person on leasing or licensing any immovable property in relation to which a remission of property tax is given by the Property Tax (Non‑Residential Properties) (Remission) Order 2020, of an amount described in subsection (2). [41/2020] (2) The amount mentioned in subsection (1) is any of the following, as applicable: ( a ) the amount in the form of monetary payments of any benefit (as defined in the COVID‑19 (Temporary Measures) (Transfer of Benefit of Property Tax Remission) Regulations 2020) of the reduction in property tax as a result of the remission that the owner of the immovable property is required under section 29(2) of the COVID‑19 (Temporary Measures) Act 2020 to pass on to the person in the year 2020; ( b ) the amount in the form of monetary payments that the owner of the immovable property has passed on or has agreed to pass on to the person in the year 2020, and by reason of which the owner is exempt from section 29(2) of the COVID‑19 (Temporary Measures) Act 2020 under regulation 13(2) of the COVID‑19 (Temporary Measures) (Transfer of Benefit of Property Tax Remission) Regulations 2020; ( c ) the amount of any other monetary payments received or receivable by the person from the person’s lessor or licensor in the year 2020, but only if the Comptroller is satisfied that the payments are intended by the lessor or licensor to provide relief to the person from any economic hardship arising from a COVID‑19 event; ( d ) the total of the amounts in paragraphs ( a ), ( b ) and ( c ). [41/2020] (3) In this section, “COVID‑19 event”, “monetary payment” and “owner”, in relation to immovable property, have the meanings given by section 13X(6). [41/2020]


document_id: ita-1947
provision_ref: s15B
chapter: PART 5 - DEDUCTIONS AGAINST INCOME
section: 15B
title: Limit on deduction allowed for leasing or licensing expenditure in 2021
content:
15B. —(1) No deduction is allowed in respect of any expenditure incurred in the year 2021 by a person who is a lessee or licensee of any prescribed property on the leasing or licensing of that property, of an amount described in subsection (2). [27/2021] (2) The amount mentioned in subsection (1) is the amount of any monetary payment received or receivable by the person from the person’s lessor or licensor in the year 2021, which — ( a ) is made by the lessor or licensor pursuant to an undertaking given by the lessor or licensor to his, her or its lessor or licensor, to provide relief to the person from any economic hardship arising from a COVID‑19 event; or ( b ) the Comptroller is satisfied is intended by the lessor or licensor to provide relief to the person from any economic hardship arising from a COVID‑19 event. [27/2021] (3) In this section, “COVID‑19 event”, “monetary payment” and “prescribed property” have the meanings given by section 13X(6). [27/2021]


document_id: ita-1947
provision_ref: s16
chapter: PART 6 - CAPITAL ALLOWANCES
section: 16
title: Initial and annual allowances for industrial buildings and structures
content:
16. —(1) Where, in or after the basis period for the first year of assessment under this Act, a person incurs capital expenditure on the construction of a building or structure which is to be an industrial building or structure occupied for the purposes of a trade, there is to be made to the person who incurred the expenditure for the year of assessment in the basis period for which the expenditure was incurred an allowance to be known as an “initial allowance” equal to 25% thereof. (2) For the purposes of subsection (1) — ( a ) where 2 basis periods overlap, the period common to both is deemed to fall in the first basis period only; ( b ) where there is an interval between the end of the basis period for a year of assessment and the commencement of a basis period for the next succeeding year of assessment, then, unless the second‑mentioned year of assessment is the year of the permanent discontinuance of the trade, the interval is deemed to be part of the second basis period; and ( c ) where there is an interval between the end of the basis period for the year of assessment preceding that in which the trade is permanently discontinued and the commencement of the basis period for the year in which it is permanently discontinued, the interval is deemed to form part of the first basis period. (3) Any capital expenditure incurred for the purposes of a trade by a person about to carry on that trade is treated for the purposes of subsection (1) as if it had been incurred by that person on the first day on which that person does carry on that trade. (4) Where any person is, at the end of the basis period for any year of assessment, entitled to an interest in a building or structure which is an industrial building or structure and where that interest is the relevant interest in relation to the capital expenditure incurred before 1 January 2006 on the construction of that building or structure, an allowance, to be known as an “annual allowance”, equal to 3% of the total capital expenditure incurred by that person on the construction of that building or structure is to be made to that person for that year of assessment. (5) Where at any time in or after the basis period for the first year of assessment under this Act and before 1 January 2006, the interest in a building or structure which is the relevant interest in relation to any capital expenditure incurred before that date on the construction of that building or structure is sold while the building or structure is an industrial building or structure or after it has ceased to be one, the annual allowance, in the years of assessment the basis periods for which end after the time of that sale, is to be computed by reference to the residue of that expenditure immediately after the sale and is — ( a ) the fraction of that residue the numerator of which is one and the denominator of which is the number of years of assessment comprised in the period which begins with the first year of assessment for which the buyer is entitled to an annual allowance or would be so entitled if the building or structure had at all material times continued to be an industrial building or structure, and ends with the fiftieth year after that in which the building or structure was first used; or ( b ) 3% of that residue, whichever is the greater, and so on for any subsequent sales. (6) In the case referred to in subsection (4), no annual allowance may be made to any person for any year of assessment after the end of the fiftieth year after that in which the building or structure was first used. (6A) Where any person is, at the end of the basis period for any year of assessment, entitled to an interest in a building or structure which is an industrial building or structure, and that interest is the relevant interest in relation to — ( a ) any capital expenditure incurred by the person on or after 1 January 2006 on the construction of that building or structure; or ( b ) a sale or purchase agreement entered into for that building or structure on or after that date, whether or not the building or structure was previously used as an industrial building or structure, an annual allowance determined under subsection (6B) is to be made to the person for that year of assessment. (6B) The annual allowance under subsection (6A) is equal to — ( a ) in the case referred to in subsection (6A)( a ), 3% of the total capital expenditure incurred by the person on the construction of the building or structure; or ( b ) in the case referred to in subsection (6A)( b ), 3% of the capital expenditure incurred by the person on the purchase of the building or structure. (7) For the purposes of application to any industrial building or structure occupied for the purposes of a trade in intensive poultry production and approved by the Minister or such person as the Minister may appoint under section 18(1), the reference to 3% in subsections (4), (5) and (6B) and in sections 17(3)( a ) and 18(9) is a reference to 5%. (8) For the purposes of application to any industrial building or structure occupied for the purposes of a hotel on the island of Sentosa and approved by the Minister or such person as the Minister may appoint under section 18(1) — ( a ) the reference to 25% in subsection (1) is a reference to 20%; ( b ) the reference to 3% in subsections (4), (5) and (6B) and in sections 17(3)( a ) and 18(9) is a reference to 2%; and ( c ) the reference to capital expenditure in subsections (1) and (4) does not include any capital expenditure incurred before 1 January 1982. (9) For the purposes of application to any industrial building or structure used for the purposes of a project for the promotion of the tourist industry (other than a hotel) in Singapore and approved by the Minister or such person as the Minister may appoint under section 18(1)( i ) — ( a ) the reference to 25% in subsection (1) is a reference to 20%; ( b ) the reference to 3% in subsections (4), (5) and (6B) and in sections 17(3)( a ) and 18(9) is a reference to 2%; and ( c ) the reference to capital expenditure in subsections (1), (3) and (4) does not include any capital expenditure incurred before 1 January 1986. (10) Despite anything in this section and section 17, where a person carrying out a project for the promotion of the tourist industry approved by the Minister or such person as the Minister may appoint under section 18(1)( i ) fails to comply with any condition imposed by the Minister, the Minister may revoke the approval and thereupon the Comptroller may at any time within 6 years (if the year of assessment relating to the basis period in which the approval is revoked is 2007 or a preceding year of assessment) or 4 years (if the year of assessment relating to the basis period in which the approval is revoked is 2008 or a subsequent year of assessment) from the date of the revocation make such assessment or additional assessment upon the person as may appear necessary in order to recover any tax which ought to have been paid by that person if any allowances under those sections had not been made to that person. (11) Despite anything in this section, the amount of an annual allowance made to a person for any year of assessment in respect of any expenditure must not in any case exceed what, apart from the writing off falling to be made by reason of the making of that allowance, would be the residue of that expenditure at the end of the person’s basis period for that year of assessment. (12) For the purposes of subsection (1), where a person has incurred capital expenditure before 1 January 2006 on the purchase of an industrial building or structure (including the purchase of a leasehold interest therein of not less than 25 years) which has not previously been used by any person, the person is deemed to have incurred expenditure on the construction of that industrial building or structure equal to the cost of construction of that industrial building or structure or to the net price paid by the person for that industrial building or structure or the interest therein, whichever is less, if — ( a ) the person claiming the initial allowance by virtue of this subsection purchased the industrial building or structure or acquired the leasehold interest therein from the person who constructed that building or structure; and ( b ) no initial allowance has been granted under subsection (1) in respect of that industrial building or structure to the person who constructed that building or structure. (13) For the purposes of subsection (1), where a person has incurred capital expenditure on or after 1 January 2006 on the purchase of an industrial building or structure which has not previously been used by any person, the person is deemed to have incurred expenditure on the construction of that industrial building or structure equal to the capital expenditure incurred by the person on the purchase of that industrial building or structure if — ( a ) the person claiming the initial allowance by virtue of this subsection purchased the industrial building or structure from the person who constructed that building or structure; and ( b ) no initial allowance has been granted under subsection (1) in respect of that industrial building or structure to the person who constructed that building or structure. (14) Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where, in the basis period for any year of assessment, the trade, for which purpose the industrial building is used, produces income that is exempt from tax as well as income chargeable with tax, the allowances for that year of assessment must be made against each income for that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances. (15) Subject to section 18B, this section does not apply to any capital expenditure incurred on or after 23 February 2010 on the construction or purchase of an industrial building or structure. (16) Subject to subsection (18) and section 18B, no annual allowance may be made under subsections (4), (5) and (6A) to a person who incurs capital expenditure on or before 22 February 2010 on the construction or purchase of a building or structure which is not an industrial building or structure on 22 February 2010 but is an industrial building or structure on or after 23 February 2010. (17) Section 18(2) and (3) applies for the purpose of determining under subsection (16) whether a building or structure is an industrial building or structure on 22 February 2010. (18) Despite subsection (16), annual allowances under subsection (6A)( a ) are to be made to a person who incurs capital expenditure on or before 22 February 2010 on a building or structure which is still under construction on 22 February 2010 and which is to be an industrial building or structure upon completion of that construction, if the person — ( a ) on or before 22 February 2010 — (i) has been granted the option to purchase the land or has entered into a sale and purchase agreement for the land on which the industrial building or structure is to be constructed; (ii) has entered into a lease agreement to lease the land on which the industrial building or structure is to be constructed; or (iii) has submitted an application to the Government or any statutory board — (A) to bid for the purchase therefrom of the land on which the industrial building or structure is to be constructed; or (B) to lease therefrom the land on which the industrial building or structure is to be constructed; and ( b ) on or before 31 December 2010, has made an application for planning permission or conservation permission to the competent authority in accordance with the Planning Act 1998 for the development of the land comprising the construction work.


document_id: ita-1947
provision_ref: s17
chapter: PART 6 - CAPITAL ALLOWANCES
section: 17
title: Balancing allowances and charges for industrial buildings and structures
content:
17. —(1) Where any of the events referred to in subsection (1A) occurs while a building or structure is an industrial building or structure or after it has ceased to be one and — ( a ) any capital expenditure has been incurred on the construction of the building or structure before 1 January 2006; or ( b ) either — (i) any capital expenditure has been incurred on the construction of the building or structure on or after 1 January 2006; or (ii) a sale and purchase agreement for the building or structure was entered into on or after that date, then an allowance or a charge, to be known as a “balancing allowance” or a “balancing charge” is, in the circumstances mentioned in this section, to be made to or (as the case may be) on the person entitled to the relevant interest immediately before that event occurs for the year of assessment in the basis period for which that event occurs. (1A) The events referred to in subsection (1) are — ( a ) the relevant interest in the building or structure is sold; ( b ) that interest, being a leasehold interest, comes to an end otherwise than on the person entitled thereto acquiring the interest which is reversionary thereon; ( c ) the building or structure is demolished or destroyed or, without being demolished or destroyed, ceases altogether to be used. (2) In the case referred to in subsection (1)( a ), no balancing allowance or balancing charge may be made to or on any person for any year of assessment by reason of any event occurring after the end of the fiftieth year after that in which the building or structure was first used. (3) No balancing allowance may be made to any person — ( a ) on the sale of the relevant interest in the building or structure unless the person proves to the Comptroller’s satisfaction that the value of the building or structure to the person is less than — (i) in the case referred to in subsection (1)( a ), the amount of the capital expenditure incurred on the construction of the building or structure reduced by the amount of any initial and annual allowances made (including an amount of 3% of the capital expenditure for each year in which no initial or annual allowance was made); or (ii) in the case referred to in subsection (1)( b ), the amount of the capital expenditure incurred by the person on the construction or purchase of the building or structure (as the case may be) reduced by the amount of any initial and annual allowances made (including an amount of 3% of the capital expenditure for each year in which no initial or annual allowance was made); or ( b ) where the relevant interest in the building or structure is not sold but the building or structure is or would be redeveloped for any use other than as an industrial building or structure. (4) Where there are no sale, insurance, salvage or compensation moneys, or where the residue of the expenditure immediately before the event exceeds those moneys, a balancing allowance is to be made and the amount thereof is the amount of the residue or (as the case may be) of the excess thereof over the moneys. (5) If the sale, insurance, salvage or compensation moneys exceed the residue (if any) of the expenditure immediately before the event, a balancing charge is to be made and the amount on which it is made is an amount equal to the excess or, where the residue is nil, to the moneys. (6) Despite anything in subsection (5) but subject to subsection (7), the amount on which a balancing charge is made on a person must not in any case exceed the aggregate of the following amounts: ( a ) the amount of the initial allowance (if any) made to the person in respect of the expenditure in question; ( b ) the amount of the annual allowances (if any) made to the person in respect of the expenditure in question. (7) Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where, in the basis period for any year of assessment, the trade, for which purpose the industrial building is used, produces income that is exempt from tax as well as income chargeable with tax, and any balancing allowance or balancing charge arises to be made — ( a ) the balancing allowance must be made against each income for that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances; and ( b ) such proportion of the balancing charge is exempt from tax as appears reasonable to the Comptroller in the circumstances. (8) Where allowances have been made under both sections 16 and 18C in respect of any industrial building or structure, then, for the purposes of subsections (4) and (5), the sale, insurance, salvage or compensation moneys in respect of that building or structure is such amount of those moneys as the Comptroller determines to be reasonable in the circumstances. (9) Where the relevant interest in a building or structure in respect of which allowances have been made under section 16 is transferred at less than the open‑market price, then for the purpose of determining the amount of any balancing charge under subsection (5), the relevant interest in the building or structure is treated as if it had been sold for an amount equal to the open‑market price of the building or structure as at the date of transfer.


document_id: ita-1947
provision_ref: s18
chapter: PART 6 - CAPITAL ALLOWANCES
section: 18
title: Definitions for sections 16, 17 and 18B
content:
18. —(1) Subject to this section, in sections 16, 17 and 18B, “industrial building or structure” means a building or structure in use — ( a ) for the purposes of a trade carried on in a mill, factory or other similar premises; ( b ) for the purposes of a transport, dock, water or electricity undertaking; ( c ) for the purposes of a trade which consists in the manufacture of goods or materials or the subjection of goods or materials to any process; ( d ) for the purposes of a trade which consists in the storage of goods or materials which are to be used in the manufacture of other goods or to be subjected, in the course of a trade, to any process; ( e ) for the purposes of a trade which consists of the storage of goods or materials on their arrival in Singapore; ( f ) for the purposes of a trade in intensive poultry production as may be approved on or before 22 May 2010 by the Minister or such person as the Minister may appoint; ( g ) by a research and development organisation in carrying out research and development activities for any manufacturing trade or business; ( h ) for the purposes of a hotel on the island of Sentosa and approved before 1 September 2007 by the Minister or such person as the Minister may appoint (called in this section a Sentosa hotel); ( i ) for the purposes of a project for the promotion of the tourist industry (other than a hotel) in Singapore and approved on or before 22 May 2010 by the Minister or such person as the Minister may appoint subject to such conditions as he or she may impose; or ( j ) for prescribed purposes and where such building or structure has been approved on or before 22 May 2010 by the Minister or such person as the Minister may appoint subject to such conditions as he or she may impose, and includes any building or structure provided by the person carrying on such a trade or undertaking for the welfare of workers employed in that trade or undertaking and in use for that purpose, but does not include a building or structure in respect of which a deduction is prescribed under section 14(1)( h ). (2) A building or structure is not deemed, by reason only of its falling or having fallen into temporary disuse, to have thereby ceased altogether to be used for one of the purposes specified in subsection (1) if, immediately prior to falling into such temporary disuse, it was in use for such a purpose and if, during the period of such temporary disuse, it is constantly maintained in readiness to be brought back into use for such a purpose. (3) If, in the circumstances mentioned in subsection (2), the building or structure at any time during disuse ceases to be ready for use for any of the purposes mentioned in that subsection, or if at any time, for any reason, the disuse of the building or structure can no longer be reasonably regarded as temporary, then and in any such case, the building or structure is deemed to have ceased, on the commencement of the period of disuse, to be used for any of the purposes specified in subsection (1). (4) Subsection (1) applies in relation to a part of a trade or undertaking as it applies to a trade or undertaking. (5) Where part only of a trade or undertaking complies with the conditions set out in subsection (1), a building or structure is not, by virtue of subsection (4), an industrial building or structure unless it is in use for the purposes of that part of that trade or undertaking. (6) Despite anything in subsection (1), (2), (3), (4) or (5), “industrial building or structure” does not include any building or structure in use as, or as part of, a dwelling house, retail shop, showroom, hotel (other than a Sentosa hotel) or office or for any purpose ancillary to the purposes of a dwelling house, retail shop, showroom, hotel (other than a Sentosa hotel) or office. (7) Where part of a building or structure is, and part thereof is not, an industrial building or structure, and — ( a ) in a case where capital expenditure is incurred on the construction of the building or structure before 1 January 2006, the capital expenditure incurred on the construction of the second‑mentioned part is not more than one‑tenth of the total capital expenditure which has been incurred on the construction of the whole building or structure; or ( b ) in a case where — (i) capital expenditure is incurred on the construction of the building or structure on or after 1 January 2006; or (ii) a sale and purchase agreement was entered into for the building or structure on or after that date, the capital expenditure incurred on the construction or purchase (as the case may be) of the second‑mentioned part is not more than one‑tenth of the total capital expenditure which has been incurred on the construction or purchase of the whole building or structure, then the whole building or structure and every part thereof is treated as an industrial building or structure. (7A) Where the Comptroller is satisfied that it is not reasonably practicable to determine the capital expenditure incurred on the second‑mentioned part of the building or structure under subsection (7), the whole building or structure and every part thereof may be treated as an industrial building or structure if — ( a ) the floor area of the part of the building or structure that is not an industrial building or structure is not more than one‑tenth of the total floor area of the whole building or structure; or ( b ) the Comptroller is otherwise satisfied that it is just and proper to do so. (8) In this section and sections 16, 17 and 18B — “capital expenditure”, in relation to the purchase of a building or structure, means the net price paid for the building or structure, but does not include the cost of land as determined to the Comptroller’s satisfaction; “relevant interest” means — ( a ) in relation to any capital expenditure incurred on the construction of a building or structure, the interest in that building or structure to which the person who incurred the expenditure was entitled when the person incurred it; and ( b ) in relation to a sale and purchase agreement for a building or structure, the interest in that building or structure to which the purchaser was entitled when the purchaser entered into the agreement; “residue of expenditure” means — ( a ) in relation to any capital expenditure incurred on the construction of a building or structure before 1 January 2006, the amount of the capital expenditure incurred on such construction reduced by — (i) the amount of any initial allowance made; (ii) any annual allowance made; and (iii) any balancing allowances granted, and increased by any balancing charges made; or ( b ) in relation to any capital expenditure incurred on the construction or purchase of a building or structure on or after 1 January 2006, the amount of the capital expenditure incurred on such construction or purchase (as the case may be) reduced by — (i) the amount of any initial allowance made; and (ii) any annual allowance made. (9) For the purpose of computing the residue of expenditure, an amount of 3% of the expenditure must be written off in respect of any year in which no initial or annual allowance has been made. 18A. [ Repealed by Act 21 of 2003 ]


document_id: ita-1947
provision_ref: s18B
chapter: PART 6 - CAPITAL ALLOWANCES
section: 18B
title:
Transitional provisions for capital expenditure incurred on industrial buildings or structures on or after 23 February 2010

content:
18B. —(1) Despite section 16(15) but subject to subsection (11), where a person incurs on or after 23 February 2010 capital expenditure on the construction of a building or structure which is to be an industrial building or structure upon the completion of the construction works, other than one referred to in subsection (2), and the person — ( a ) on or before 22 February 2010 — (i) has been granted the option to purchase the land or has entered into a sale and purchase agreement for the land on which the industrial building or structure is to be constructed; (ii) has entered into a lease agreement to lease the land on which the industrial building or structure is to be constructed; or (iii) has submitted an application to the Government or any statutory board — (A) to bid for the purchase therefrom of the land on which the industrial building or structure is to be constructed; or (B) to lease therefrom the land on which the industrial building or structure is to be constructed; and ( b ) on or before 31 December 2010, has made an application for planning permission or conservation permission to the competent authority in accordance with the Planning Act 1998 for the development of the land comprising the construction work, there are to be made to that person an initial allowance and annual allowances in respect of that capital expenditure computed in accordance with section 16. (2) Despite section 16(15) but subject to subsection (11), where a person incurs on or after 23 February 2010 capital expenditure on the construction of a building or structure which is to be an industrial building or structure by virtue of paragraph ( f ), ( i ) or ( j ) of section 18(1) upon completion of the construction works, there are to be made to that person an initial allowance and annual allowances in respect of that capital expenditure computed in accordance with section 16. (3) Despite section 16(15), where a person — ( a ) on or before 22 February 2010 — (i) has been granted an option to purchase, or has entered into a sale and purchase agreement for, a new building or structure which is to be an industrial building or structure upon the purchase other than one referred to in subsection (4); or (ii) has been granted an option to acquire or has entered into an agreement to acquire the leasehold interest in such a building or structure; and ( b ) on or after 23 February 2010, incurs capital expenditure on the purchase of the building or structure or of the leasehold interest therein, there are to be made to that person an initial allowance and annual allowances in respect of that capital expenditure computed in accordance with section 16. (4) Despite section 16(15) but subject to subsection (12), where a person incurs on or after 23 February 2010 capital expenditure on the purchase of a new building or structure (including the purchase of a leasehold interest therein), and the building or structure is to be an industrial building or structure by virtue of paragraph ( f ), ( i ) or ( j ) of section 18(1) upon the purchase or the completion of any renovation or refurbishment works carried out on the building or structure upon the purchase, there are to be made to that person an initial allowance and annual allowances in respect of the capital expenditure, as well as the capital expenditure incurred on such renovation or refurbishment works, both to be computed in accordance with section 16. (5) Despite section 16(15), where a person — ( a ) on or before 22 February 2010 — (i) has been granted an option to purchase, or has entered into a sale and purchase agreement for, a building or structure (not being a new building or structure) which is to be an industrial building or structure upon the purchase other than one referred to in subsection (6); or (ii) has been granted an option to acquire or has entered into an agreement to acquire the leasehold interest in such a building or structure; and ( b ) on or after 23 February 2010, incurs capital expenditure on the purchase of the building or structure or of the leasehold interest therein, there are to be made to that person annual allowances in respect of that capital expenditure computed in accordance with section 16. (6) Despite section 16(15) but subject to subsection (12), where a person incurs on or after 23 February 2010 capital expenditure on the purchase of a building or structure (not being a new building or structure), or of a leasehold interest therein, and the building or structure is to be an industrial building or structure by virtue of paragraph ( f ), ( i ) or ( j ) of section 18(1) upon the purchase or the completion of any renovation or refurbishment works carried out on the building or structure upon the purchase, there are to be made to that person, in accordance with section 16 — ( a ) annual allowances in respect of the capital expenditure; and ( b ) an initial allowance and annual allowances in respect of capital expenditure incurred on such renovation or refurbishment works. (7) Despite section 16(15) and (16) but subject to subsection (11), where a person — ( a ) on or after 23 February 2010, incurs capital expenditure on extension works carried out on an existing building or structure that (together with the extension thereto) is to be an industrial building or structure, other than one referred to in subsection (8), upon the completion of the extension works; ( b ) on or before 22 February 2010, enters into a written agreement for a qualified person to carry out the extension works; and ( c ) on or before 31 December 2010, makes an application for planning permission or conservation permission to the competent authority in accordance with the Planning Act 1998 for the development of the land comprising the extension works, there are to be made to that person, computed in accordance with section 16 — ( d ) an initial allowance and annual allowances in respect of the capital expenditure incurred on the extension works; and ( e ) where the existing building or structure is not an industrial building or structure on 22 February 2010, annual allowances in respect of any capital expenditure incurred before 23 February 2010 on the construction or purchase or the residue of that expenditure (as the case may be) of that building or structure. (8) Despite section 16(15) and (16) but subject to subsection (11), where a person incurs on or after 23 February 2010 capital expenditure on extension works to an existing building or structure, not being an industrial building or structure on or at any time before 22 February 2010, that (together with the extension thereto) is to be an industrial building or structure by virtue of paragraph ( f ), ( i ) or ( j ) of section 18(1) upon the completion of the extension works, there are to be made to that person, computed in accordance with section 16 — ( a ) an initial allowance and annual allowances in respect of the capital expenditure; and ( b ) annual allowances in respect of any capital expenditure incurred before 23 February 2010 on the construction or purchase or the residue of that expenditure (as the case may be) of the existing building or structure. (9) Despite section 16(15) and (16) but subject to subsection (12), where a person incurs on or after 23 February 2010 capital expenditure on renovation or refurbishment works on an existing building or structure, and — ( a ) the building or structure is to be an industrial building or structure, other than one referred to in subsection (10), upon the completion of the renovation or refurbishment works; and ( b ) such renovation or refurbishment works are carried out pursuant to a written agreement entered into with a renovation contractor on or before 22 February 2010, there are to be made to that person, computed in accordance with section 16 — ( c ) an initial allowance and annual allowances in respect of the capital expenditure incurred on the renovation or refurbishment works; and ( d ) where the existing building or structure is not an industrial building or structure on 22 February 2010, annual allowances in respect of the capital expenditure incurred before 23 February 2010 on the construction or purchase or the residue of that expenditure (as the case may be) of that building or structure. (10) Despite section 16(15) and (16) but subject to subsection (12), where a person incurs on or after 23 February 2010 capital expenditure on renovation or refurbishment works on an existing building or structure, not being an industrial building or structure on or at any time before 22 February 2010, that is to be an industrial building or structure by virtue of paragraph ( f ), ( i ) or ( j ) of section 18(1) upon the completion of the renovation or refurbishment works, there are to be made to that person, computed in accordance with section 16 — ( a ) an initial allowance and annual allowances in respect of the capital expenditure; and ( b ) annual allowances in respect of any capital expenditure incurred before 23 February 2010 on the construction or purchase or the residue of that expenditure (as the case may be) of the existing building or structure. (11) For the purposes of subsections (1), (2), (7) and (8), no allowance may be made to a person in respect of any capital expenditure incurred on an industrial building or structure after the date of issuance of the temporary occupation permit for that building or structure or the end of the basis period for the year of assessment 2016, whichever is earlier. (12) For the purposes of subsections (4), (6), (9) and (10), no allowance may be made to a person in respect of any capital expenditure incurred after the completion of the renovation or refurbishment works referred to in those subsections or the end of the basis period for the year of assessment 2016, whichever is the earlier. (13) No allowance may be made under this section in respect of any capital expenditure incurred on the construction of a building or structure for which an allowance is made under section 18C. (14) In this section — “new building or structure” means a building or structure which — ( a ) has not previously been used by any person; and ( b ) was purchased by a person from another person who — (i) constructed that building or structure; and (ii) was not granted an initial allowance in respect of that building or structure under section 16; “qualified person” means — ( a ) any person who is registered as an architect under the Architects Act 1991 and who has in force a practising certificate issued under that Act; or ( b ) any person who is registered as a professional engineer under the Professional Engineers Act 1991 and who has in force a practising certificate issued under that Act.


document_id: ita-1947
provision_ref: s18C
chapter: PART 6 - CAPITAL ALLOWANCES
section: 18C
title: Initial and annual allowances for certain buildings and structures
content:
18C. —(1) Where any person proposes to incur or has incurred on or after 23 February 2010 qualifying capital expenditure on the construction or renovation of a building or structure on industrial land for which an application for planning permission or conservation permission is made to the competent authority in accordance with the Planning Act 1998 on or after 23 February 2010, the person may apply to the Minister or an authorised body, on or after 1 July 2010 for such construction or renovation to be approved for the purposes of making an allowance under this section in respect of such expenditure incurred by that person. [37/2014; 41/2020] [Act 41 of 2020 wef 12/04/2024] (1A) Where any person proposes to incur or has incurred on or after 22 February 2014 qualifying capital expenditure on the construction or renovation of a building or structure on port land or airport land, for which an application for planning permission or conservation permission is made on or after that date to the competent authority in accordance with the Planning Act 1998, the person may apply to the Minister or an authorised body, on or after 22 February 2014 for such construction or renovation to be approved for the purposes of making an allowance under this section in respect of such expenditure incurred by that person. [37/2014; 41/2020] [Act 41 of 2020 wef 12/04/2024] (1B) No approval may be granted under this section after 31 December 2030. [41/2020] [Act 25 of 2025 wef 08/12/2025] (2) Where the Minister or an authorised body, on an application made to the Minister or authorised body under subsection (1) or (1A) that is a pre‑25 March 2016 application, is satisfied that the construction or renovation of the building or structure on industrial land, port land or airport land (as the case may be) promotes the prescribed intensified use of the land for the purposes of a prescribed trade or business, the Minister or authorised body may, by notice in writing, approve the construction or renovation for the purposes of this section, which approval is subject to such conditions as the Minister or authorised body may impose, including the particular trade or business for which the building or structure is to be used upon completion of construction or renovation. [Act 41 of 2020 wef 12/04/2024] (2A) The Minister or an authorised body may, on application by a person who made an application under subsection (1) or (1A) pursuant to which a construction or renovation of a building or structure is approved under subsection (2), vary a condition of the approval as to the particular trade or business for which the building or structure may be used upon completion of the construction or renovation, if the Minister or authorised body is satisfied that the ground mentioned in subsection (2) for approving an application under subsection (1) or (1A) continues to be met. [34/2016] [Act 41 of 2020 wef 12/04/2024] (2B) The Minister or an authorised body may, by written notice, approve an application made under subsection (1) or (1A) that is a post‑25 March 2016 application if, based on the information provided by the applicant, the Minister or authorised body is satisfied that — ( a ) on completion of the construction or renovation, at least 80% of the total floor area of the building or structure will be used — (i) by — (A) a single person who is either the applicant or a person related to the applicant; or (B) 2 or more persons who satisfy the requirements of relatedness; and (ii) for one or more prescribed trades or businesses; and ( b ) the construction or renovation of the building or structure on the land promotes the prescribed intensified use of the land for the purposes of that trade or business or, if there is more than one trade or business, such of those trades or businesses as may be designated in the regulations. [34/2016] [Act 41 of 2020 wef 12/04/2024] (2C) An approval under subsection (2B) is subject to the condition that, upon completion of the construction or renovation, at least 80% of the total floor area of the building or structure will be used — ( a ) by one or more persons specified in the notice mentioned in subsection (2B) who — (i) if it will be used by a single person, is either the applicant of the application concerned under subsection (1) or (1A), or a person related to the applicant; or (ii) if it will be used by 2 or more persons, satisfy the requirements of relatedness; and ( b ) for one or more trades or businesses specified in the application. [34/2016] (2D) An approval under subsection (2B) may be subject to such other conditions as the Minister or authorised body may impose. [34/2016] [Act 41 of 2020 wef 12/04/2024] (2E) The Minister or an authorised body may, on application by a person who made an application under subsection (1) or (1A) pursuant to which a construction or renovation of a building or structure is approved under subsection (2B) — ( a ) substitute any person or trade or business mentioned in subsection (2C) with any other person or trade or business; or ( b ) add a person or trade or business to the person or trade or business mentioned in subsection (2C), if the Minister or authorised body is satisfied that the requirements in subsection (2B)( a ) and ( b ) continue to be met. [34/2016] [Act 41 of 2020 wef 12/04/2024] (2F) Where a trade or business is prescribed by regulations under subsection (11A), then, unless otherwise provided in the regulations, the Minister or authorised body may only — ( a ) approve an application under subsection (2) for a renovation or construction because it promotes the prescribed intensified use of the land for that trade or business; or ( b ) approve an application under subsection (2B) because at least 80% of the total floor area of the building or structure will be used, on completion of the construction or renovation, by a person or persons mentioned in subsection (2B)( a )(i) for that trade or business or for trades or businesses which include that trade or business, if — ( c ) the application is made on or after a prescribed date; and ( d ) the application for planning permission or conservation permission for the construction or renovation is made on or after a prescribed date. [34/2016] [Act 41 of 2020 wef 12/04/2024] (2G) In relation to any construction or renovation that is approved pursuant to an application to which subsection (2F) applies, the qualifying capital expenditure for which an allowance may be made under subsections (3) and (4) excludes any expenditure incurred before a prescribed date, unless the regulations under subsection (11A) provide otherwise. [34/2016] (2H) The prescribed date mentioned in subsection (2F)( c ) or ( d ) or (2G) is, unless otherwise specified in the regulations, the date the trade or business is prescribed by regulations under subsection (11A). [34/2016] (2I) To avoid doubt, a reference in subsections (2F) and (2H) to the prescribing of a trade or business under subsection (11A) is, in the case of an application made under subsection (1) or (1A) before 25 March 2016, a reference to the prescribing of a trade or business under subsection (2) in force immediately before that date. [34/2016] (2J) In relation to any construction or renovation that is approved pursuant to a post‑25 March 2016 application (other than one with only a single specified user and a single specified trade or business), the qualifying capital expenditure for which an allowance may be made under subsections (3) and (4) excludes any expenditure incurred before 25 March 2016. [34/2016] (3) Where in the basis period for any year of assessment the person has incurred any qualifying capital expenditure on the approved construction or approved renovation (as the case may be), there is to be made to the person for the year of assessment in the basis period for which the expenditure was incurred an allowance to be known as an “initial allowance” equal to 25% of the expenditure. (4) Subject to subsections (5), (5AA) and (6), where the person is, at the end of the basis period for any year of assessment, entitled to a relevant interest in the building or structure which is being used for the purposes of the specified trade or business or (as the case may be) trades or businesses, and in respect of which qualifying capital expenditure is incurred, there is to be made to the person for that year of assessment an allowance to be known as an “annual allowance” equal to 5% of the qualifying capital expenditure incurred by the person. [34/2016] (5) Where the construction or renovation is approved pursuant to a pre‑25 March 2016 application, no allowance is to be made under subsection (4) for any year of assessment unless — ( a ) in a case where 2 or more temporary occupation permits are to be issued for the subject of the approved construction or renovation, and one or more of those temporary occupation permits have been issued but not all of them, at least 80% of the total floor area of the subject of each temporary occupation permit that has been issued; or ( b ) in any other case, at least 80% of the total floor area of the subject of the approved construction or renovation, is used, at the end of the basis period for that year of assessment, by any one person for the purposes of the specified trade or business, and, for the case in paragraph ( a ), that person is the same person for all the subjects of the temporary occupation permits that have been issued. [2/2016; 34/2016] (5AA) Where the construction or renovation is approved pursuant to a post‑25 March 2016 application, no allowance is to be made under subsection (4) for any year of assessment unless — ( a ) in a case where 2 or more temporary occupation permits are to be issued for the subject of the approved construction or renovation, but not all of those temporary occupation permits have been issued, at least 80% of the total floor area of the subject of each temporary occupation permit that has been issued; or ( b ) in any other case, at least 80% of the total floor area of the subject of the approved construction or renovation, is used, at the end of the basis period for that year of assessment — ( c ) for the purposes of the specified trade or business or one or more of the specified trades or businesses; and ( d ) by — (i) one person who is a specified user and is either the applicant of the post‑25 March 2016 application or related to the applicant; or (ii) 2 or more persons who are specified users and satisfy the requirements of relatedness. [34/2016] (5A) In subsections (5) and (5AA), the subject of an approved construction or renovation, or of a temporary occupation permit, is the building or structure, all the buildings or structures, or the part or all the parts of a building or structure (as the case may be) that forms or form the subject matter of the approved construction or renovation, or the temporary occupation permit. [2/2016; 34/2016] (6) Any annual allowance made to any person under subsection (4) in respect of an approved construction or approved renovation for any year of assessment must not exceed the amount of qualifying capital expenditure remaining unallowed as at the beginning of the basis period for that year of assessment. (7) For the purposes of this section, qualifying capital expenditure incurred by any person on the approved construction or approved renovation (as the case may be) prior to the commencement of the person’s trade or business is deemed to have been incurred by that person on the first day that person carries on that trade or business. (8) Where the person fails to comply with the condition in subsection (2C), or any condition imposed under subsection (2) or (2D) in respect of the approved construction or approved renovation, the Minister or an authorised body, may, by written notice, revoke the approval granted under that subsection. [34/2016] [Act 41 of 2020 wef 12/04/2024] (9) Despite section 74(1) and (4), where an app


document_id: ita-1947
provision_ref: s19
chapter: PART 6 - CAPITAL ALLOWANCES
section: 19
title: Initial and annual allowances for machinery or plant
content:
19. —(1) Where a person carrying on a trade, profession or business incurs capital expenditure on the provision of machinery or plant for the purposes of that trade, profession or business, there is to be made to the person, on due claim for the year of assessment in the basis period for which the expenditure is incurred an allowance, to be known as an “initial allowance”, equal to one‑fifth of that expenditure or such other allowance as may be prescribed either generally or for any person or class of persons in respect of any machinery or plant or class of machinery or plant. (1A) For the purposes of subsection (1), in the case of any trade, profession or business — ( a ) where 2 basis periods overlap, the period common to both is deemed to fall in the first basis period only; ( b ) where there is an interval between the end of the basis period for a year of assessment and the commencement of a basis period for the next succeeding year of assessment, then, unless the second‑mentioned year of assessment is the year of the permanent discontinuance of the trade, the interval is deemed to be part of the second basis period; and ( c ) where there is an interval between the end of the basis period for the year of assessment preceding that in which the trade is permanently discontinued and the commencement of the basis period for the year in which it is permanently discontinued, the interval is deemed to form part of the first basis period. (1B) Any capital expenditure incurred for the purposes of a trade by a person about to carry on that trade is treated for the purposes of subsection (1) as if it had been incurred by that person on the first day on which that person does carry on that trade. (2) Where at the end of the basis period for any year of assessment, a person has in use machinery or plant for the purpose of the person’s trade, profession or business, there is to be made to the person, on due claim, in respect of that year of assessment an allowance for depreciation by wear and tear of those assets (to be known as an annual allowance) which is to be calculated in accordance with the following provisions: ( a ) subject to subsection (2AA), the annual allowance in respect of any machinery or plant acquired by a person either in the basis period for a year of assessment before the year of assessment 2023 or under a hire‑purchase agreement signed in the basis period for a year of assessment before the year of assessment 2023 is — (i) in the case of an asset, other than an asset acquired under a hire‑purchase agreement — the amount ascertained by dividing the excess of the original cost of the asset over any initial allowance granted under subsection (1) by the number of years of working life of the asset as specified in the Sixth Schedule unless otherwise provided under paragraph ( b ) or ( ba ); (ii) in the case of an asset acquired under a hire‑purchase agreement — the amount ascertained by dividing the excess of the original cost of the asset over the total amount of initial allowance allowable in respect of the asset under subsection (1) by the number of years of working life of the asset as specified in the Sixth Schedule unless otherwise provided under paragraph ( b ) or ( ba ); ( b ) for the purposes of paragraph ( a ), the number of years of working life of any aircraft acquired between 1 March 1995 and 29 February 2012 (both dates inclusive) is, if it had been extended under section 19(2)( b ) in force immediately before 1 March 2012, the number of years of its working life as specified in the Sixth Schedule together with the extension; ( ba ) for the purposes of paragraph ( a ), the total number of years of working life of an aircraft acquired on or after 1 March 2012 but before the basis period for the year of assessment 2023 by an approved aircraft leasing company mentioned in section 43N is, if the company has made an election under subsection (2A) — (i) the sum of — (A) the number of years of working life of an aircraft as specified in the Sixth Schedule; and (B) the period of extension specified by the company under subsection (2A); or (ii) 20 years, whichever is less; ( bb ) the annual allowance in respect of any machinery or plant acquired by a person in the basis period for the year of assessment 2023 or a subsequent year of assessment or under a hire‑purchase agreement signed in the basis period for the year of assessment 2023 or a subsequent year of assessment is — (i) in the case of an asset that is not acquired under a hire‑purchase agreement — the amount ascertained by dividing the excess of the original cost of the asset over any initial allowance granted under subsection (1) by any of the following number of years as elected by the person: (A) where the number of years of working life of the asset as specified in the Sixth Schedule is less than 16 years and unless otherwise provided under paragraph ( bd ) — 6 or 12 years; (B) where the number of years of working life of the asset as specified in the Sixth Schedule is 16 years — 6, 12 or 16 years; or (ii) in the case of an asset acquired under a hire‑purchase agreement — the amount ascertained by dividing the excess of the original cost of the asset over the total amount of the initial amount allowable in respect of the asset under subsection (1) by any of the following number of years as elected by the person: (A) where the number of years of working life of the asset as specified in the Sixth Schedule is less than 16 years and unless otherwise provided under paragraph ( bd ) — 6 or 12 years; (B) where the number of years of working life of the asset as specified in the Sixth Schedule is 16 years — 6, 12 or 16 years; ( bc ) the election under paragraph ( bb ) must be made to the Comptroller at the time of lodgment of the person’s return of income for the year of assessment relating to the basis period in which the asset was acquired or the hire‑purchase agreement was signed or within such further time as the Comptroller may allow, and such election is irrevocable; ( bd ) for the purposes of paragraph ( bb ), the total number of years of working life of an aircraft acquired in the basis period for the year of assessment 2023 or a subsequent year of assessment by an approved aircraft leasing company mentioned in section 43N is, if the company has made an election under subsection (2A) — (i) the sum of — (A) either 6 or 12 years as elected by the company under paragraph ( bb ); and (B) the period of extension specified by the company under subsection (2A); or (ii) 20 years, whichever is less; ( c ) the annual allowance in respect of any asset for any year of assessment must not exceed the amount of the capital expenditure of the asset still unallowed under this section as at the beginning of the basis period for that year of assessment; ( d ) for the purposes of the Sixth Schedule, where any question arises as to the classification of an asset under any item of that Schedule, the asset is treated as falling under such item as the Comptroller considers proper. [41/2020] (2AA) Where — ( a ) a machinery or plant is acquired by a person either in the basis period for a year of assessment before the year of assessment 2023 or under a hire‑purchase agreement signed in the basis period for a year of assessment before the year of assessment 2023; and ( b ) no due claim for an allowance in respect of that asset has been made under subsection (1) or (2)( a ) for any year of assessment before the year of assessment 2023, then, if the person makes a claim for an annual allowance in respect of that asset for the year of assessment 2023 or a subsequent year of assessment, the annual allowance in respect of that asset is ascertained by dividing the original cost of that asset by the number of years of working life of that asset, as elected by the person under subsection (2AB). [41/2020] (2AB) For the purposes of subsection (2AA), the person may elect for the number of years of working life of the asset to be — ( a ) if the number of years of its working life as specified in the Sixth Schedule is less than 16 years — 6 or 12 years; or ( b ) if the number of years of its working life as specified in the Sixth Schedule is 16 years — 6, 12 or 16 years. [41/2020] (2AC) An election under subsection (2AB) must be made by the person to the Comptroller at the time of lodgment of the person’s return of income for the year of assessment 2023 or within such further time as the Comptroller may allow, and such election is irrevocable. [41/2020] (2A) An approved aircraft leasing company which acquired any aircraft on or after 1 March 2012 may, at the time of lodgment of its return of income for the year of assessment relating to the basis period in which the aircraft was acquired, make an irrevocable election to the Comptroller for the number of years of the working life of the aircraft as specified in the Sixth Schedule or as elected by the person under subsection (2)( bb ), to be extended by a period specified by the company. [41/2020] (2B) [ Deleted by Act 41 of 2020 ] (3) Despite subsection (1) or (2) or section 19A(1), (1B) or (1E), in respect of a motor car to which this subsection applies — ( a ) the initial allowance to be made under subsection (1) is to be calculated on an amount equal to the capital expenditure incurred in respect of that motor car or $35,000, whichever is less; ( b ) the annual allowance to be made under subsection (2) or section 19A(1), (1B) or (1E) is to be calculated on the basis that the original cost of that motor car is the capital expenditure incurred or $35,000, whichever is less; and ( c ) the aggregate of the initial and annual allowances to be made under this subsection for all relevant years of assessment must not exceed $35,000. [41/2020] (4) Subsection (3) applies to a motor car which is constructed or adapted for the carriage of not more than 7 passengers (exclusive of the driver) and the weight of which unladen does not exceed 3,000 kilograms and which — ( a ) was registered before 1 April 1998 as a business service passenger vehicle for the purposes of the Road Traffic Act 1961 but excludes such a motor car which is — (i) used principally for instructional purposes; and (ii) acquired by a person who carries on the business of providing driving instruction and who holds a driving school licence or driving instructor’s licence issued under that Act; or ( b ) was acquired in the basis period for the year of assessment 2013 or any preceding year of assessment, and is registered outside Singapore and used exclusively outside Singapore. (5) No allowance under this section or section 19A may be made in respect of a motor car which is constructed or adapted for the carriage of not more than 7 passengers (exclusive of the driver) and the weight of which unladen does not exceed 3,000 kilograms except — ( a ) a taxi, and then only to the following: (i) a person that is not an individual and that holds a street‑hail service licence granted (on renewal or otherwise) or deemed granted under the Point‑to‑Point Passenger Transport Industry Act 2019 (called in this paragraph a street‑hail service licence); (ii) an individual who is a partner of the partnership that acquired the taxi and holds a street‑hail service licence; (iii) an individual who — (A) acquired the taxi as a replacement or a subsequent replacement of a taxi acquired by him or her any time before 1 January 1975; and (B) holds a vocational licence granted under section 110 of the Road Traffic Act 1961 authorising him or her to drive a taxi; ( b ) a motor car registered outside Singapore and used exclusively outside Singapore; ( c ) a private hire car acquired by a person who carries on the business of hiring out cars and which is used by the person principally for hiring; ( d ) a motor car which was registered before 1 April 1998 as a business service passenger vehicle for the purposes of the Road Traffic Act 1961; ( e ) a motor car r


document_id: ita-1947
provision_ref: s19A
chapter: PART 6 - CAPITAL ALLOWANCES
section: 19A
title:
Allowances of 3 years or 2 years write‑off for machinery and plant, and 100% write‑off for computer, prescribed automation equipment and robot, etc.

content:
19A. —(1) Despite section 19, where a person carrying on a trade, profession or business incurs capital expenditure on the provision of machinery or plant for the purposes of that trade, profession or business, there is to be made to the person, on due claim for any year of assessment and in lieu of the allowances provided by section 19, an annual allowance of 33 1 / 3 % in respect of the capital expenditure incurred. (1A) Any annual allowance under this section in respect of any asset for any year of assessment must not exceed the amount of the capital expenditure of the asset remaining unallowed as at the beginning of the basis period for that year of assessment. (1B) Despite subsection (1), where a person carrying on a trade, profession or business incurs, during the basis period relating to the year of assessment 2010 or 2011, capital expenditure on the provision of machinery or plant for the purposes of that trade, profession or business, the person may, in lieu of the allowances provided by subsection (1) or section 19, elect to be entitled for any 2 years of assessment to the following: ( a ) for the year of assessment relating to the basis period in which the capital expenditure was incurred or any subsequent year of assessment (called in this subsection the first year), an allowance of 75% in respect of the capital expenditure incurred; ( b ) for any year of assessment subsequent to the first year, an allowance of 25% in respect of the capital expenditure incurred. (1C) Where a person carrying on a trade, profession or business enters into a hire‑purchase agreement during the basis period relating to the year of assessment 2010 or 2011 in respect of machinery or plant provided for the purposes of that trade, profession or business, subsection (1B) applies to each instalment paid by that person under that hire‑purchase agreement, whether the instalment is paid during or after the basis period relating to the year of assessment 2010 or 2011. (1D) An election made by a person under subsection (1B) is irrevocable. (1E) Despite subsection (1), where a person carrying on a trade, profession or business incurs, during the basis period for the year of assessment 2021, 2022 or 2024, capital expenditure on the provision of machinery or plant for the purposes of that trade, profession or business, the person may, in lieu of the allowances under subsection (1) or section 19, elect to be entitled to the following: ( a ) for the year of assessment relating to the basis period in which the capital expenditure is incurred — an annual allowance of 75% in respect of the capital expenditure incurred; ( b ) for the year of assessment immediately following the year of assessment mentioned in paragraph ( a ) — an annual allowance of 25% in respect of the capital expenditure incurred. [41/2020; 27/2021] [Act 30 of 2023 wef 30/10/2023] (1F) The election in subsection (1E) must be made at the time of lodgment of the person’s return of income for the year of assessment relating to the basis period in which the capital expenditure is incurred, and such election is irrevocable. [41/2020; 27/2021] (1G) Where a person carrying on a trade, profession or business enters into a hire‑purchase agreement during the basis period for the year of assessment 2021, 2022 or 2024 in respect of machinery or plant provided for the purposes of that trade, profession or business, subsection (1E) applies, with the necessary modifications, to each instalment paid by the person under the hire‑purchase agreement in a basis period for a year of assessment (whether the firstmentioned year of assessment or a subsequent year of assessment), as it applies to capital expenditure incurred in the basis period for the year of assessment 2021, 2022 or 2024, as the case may be. [27/2021] [Act 30 of 2023 wef 30/10/2023] (2) Despite section 19, where a person proves to the Comptroller’s satisfaction that the person has installed a computer or other prescribed automation equipment for the purposes of a trade, business or profession carried on by the person, the person is, in lieu of the allowances provided by subsection (1), (1B) or (1E) or section 19, entitled, if the person so elects, to an allowance of 100% in respect of the capital expenditure incurred on the provision of that computer or automation equipment. [41/2020] (2A) Where a person proves to the Comptroller’s satisfaction that the person has incurred capital expenditure during the basis period for the year of assessment 2011 or the year of assessment 2012 on the provision of one or more PIC automation equipment for the purposes of a trade, profession or business carried on by the person, there is allowed on due claim, in respect of all of the person’s trades, professions and businesses, and in addition to the allowance under section 19 or subsection (1), (1B) or (2) (as the case may be), an allowance computed in accordance with the formula where A is — ( a ) for the year of assessment 2011, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) $800,000; and ( b ) for the year of assessment 2012, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $800,000 the lower of the amounts specified in paragraph ( a )(i) and (ii). (2B) Subject to section 37J, where a person proves to the Comptroller’s satisfaction that the person has incurred capital expenditure during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015 on the provision of one or more PIC automation equipment for the purposes of a trade, profession or business carried on by the person, there is allowed on due claim, in respect of all of the person’s trades, professions and businesses and in addition to the allowance under section 19 or subsection (1), (1B) or (2) (as the case may be), an allowance computed in accordance with the formula where A is — ( a ) for the year of assessment 2013, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2014, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2015, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (2BAA) Subject to section 37J, where a person proves to the Comptroller’s satisfaction that the person has incurred capital expenditure during the basis period for the year of assessment 2016, 2017 or 2018 on the provision of one or more PIC automation equipment for the purposes of a trade, profession or business carried on by the person, there is allowed on due claim, in respect of all of the person’s trades, professions and businesses, and in addition to the allowance under section 19 or subsection (1), (1B) or (2) (as the case may be), an allowance computed in accordance with the formula where A is — ( a ) for the year of assessment 2016, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2017, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2018, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (2BA) In subsection (2A), the amount under paragraph ( a )(ii) is substituted with “$400,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2012, and the balance under paragraph ( b )(ii) is substituted with “$400,000” if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2011. (2BB) In subsection (2B) — ( a ) if the person does not carry on any trade, profession or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade, profession or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and ( c ) to avoid doubt, no deduction may be made from the substituted amount in subsection (2B)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (2B)( a )(i) and (ii) if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2013, and no deduction may be made from the substituted amount in subsection (2B)( c )(ii) of the lower of the amounts specified in subsection (2B)( b )(i) and (ii) if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2014. (2BC) In subsection (2BAA) — ( a ) if the person does not carry on any trade, profession or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the person does not carry on any trade, profession or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and ( c ) to avoid doubt, no deduction may be made from the substituted amount in subsection (2BAA)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (2BAA)( a )(i) and (ii) if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2016, and no deduction may be made from the substituted amount in subsection (2BAA)( c )(ii) of the lower of the amounts specified in subsection (2BAA)( b )(i) and (ii) if the person does not carry on any trade, profession or business during the basis period for the year of assessment 2017. [37/2014] (2C) Where a person proves to the Comptroller’s satisfaction that the person has during or after the basis period for the year of assessment 2011 incurred capital expenditure by way of making one or more instalment payments under a hire‑purchase agreement or agreements to acquire one or more PIC automation equipment for the purposes of a trade, business or profession carried on by the person, that is or are signed during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), and the person makes a claim for an allowance 


document_id: ita-1947
provision_ref: s19B
chapter: PART 6 - CAPITAL ALLOWANCES
section: 19B
title: Writing‑down allowances for intellectual property rights
content:
19B. —(1) Subject to this section, where a company carrying on a trade or business has incurred on or after 1 November 2003 capital expenditure in acquiring any intellectual property rights for use in that trade or business and the acquisition date of those rights is on or before the last day of the basis period relating to the year of assessment 2016, writing‑down allowances in respect of that expenditure must be made to it during a writing‑down period of 5 years beginning with the year of assessment relating to the basis period in which that expenditure is incurred. [34/2016] (1A) Where a company carrying on a trade or business incurs during the basis period for the year of assessment 2011 or the year of assessment 2012 capital expenditure in acquiring one or more intellectual property rights for use in its trade or business, there is, in addition to the writing‑down allowance under subsection (1), to be made in respect of all its trades and businesses a writing‑down allowance computed in accordance with the formula where A is — ( a ) for the year of assessment 2011, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) $800,000; and ( b ) for the year of assessment 2012, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $800,000 the lower of the amounts specified in paragraph ( a )(i) and (ii). (1AA) Where — ( a ) a company carrying on a trade or business has incurred capital expenditure in acquiring any intellectual property rights for use in that trade or business; and ( b ) the acquisition date of those rights is on or after the first day of the basis period relating to the year of assessment 2017, writing‑down allowances in respect of that expenditure must be made to it during a writing‑down period of 5 years, 10 years or 15 years (as elected by the company) beginning with the year of assessment relating to the basis period in which that expenditure is incurred. [34/2016] (1AB) The company mentioned in subsection (1AA) must make an irrevocable election to the Comptroller for the writing‑down allowances to be made to it over a writing‑down period of 5 years, 10 years or 15 years. [34/2016] (1AC) The election under subsection (1AB) must be made at the time of lodgment of the company’s return of income for the year of assessment relating to — ( a ) if the payment for the intellectual property rights is made by instalments, the basis period in which the first of any deposit or instalment payment for those rights is made; or ( b ) in any other case, the basis period in which the expenditure is incurred. [34/2016] (1AD) Where a company — ( a ) that is a qualifying company for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive); and ( b ) that carries on a trade or business during the basis period for that year of assessment, incurs during the basis period capital expenditure in acquiring one or more intellectual property rights for use in its trade or business, there is to be made, in addition to the writing-down allowance under subsection (1AA), a writing-down allowance computed in accordance with the formula where A is the lower of the following: ( a ) the capital expenditure incurred during the basis period for that year of assessment; ( b ) $400,000. [Act 30 of 2023 wef 30/10/2023] (1AE) The writing-down allowance under subsection (1AD) is to be made to the qualifying company during the writing-down period elected under subsection (1AA) for the same expenditure. [Act 30 of 2023 wef 30/10/2023] (1AF) In this section, a company is a qualifying company for a year of assessment if — ( a ) where the company is not part of a group — the company derives less than $500 million in gross revenue from all of its trades and businesses in that basis period; or ( b ) where the company is part of a group — all the entities in the group derive a total of less than $500 million in gross revenue from all of the entities’ trades and businesses in that basis period. [Act 30 of 2023 wef 30/10/2023] (1AG) For the purposes of subsection (1AF) — ( a ) “FRS 110” means the financial reporting standard known as Financial Reporting Standard 110 (Consolidated Financial Statements) that is treated as made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time; and ( b ) “group” means a group of entities (whether incorporated or registered in Singapore or elsewhere) comprising a parent and its subsidiaries within the meaning of FRS 110. [Act 30 of 2023 wef 30/10/2023] (1AH) No allowance under subsection (1AD) may be made to any qualifying company in respect of any instalment paid by the qualifying company under any agreement to acquire any intellectual property rights that is signed before the basis period for the year of assessment 2024. [Act 30 of 2023 wef 30/10/2023] (1B) Subject to section 37J, where a company carrying on a trade or business incurs during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015 capital expenditure in acquiring one or more intellectual property rights for use in its trade or business, there is, in addition to the writing‑down allowance under subsection (1), to be made in respect of all its trades and businesses a writing‑down allowance computed in accordance with the formula where A is — ( a ) for the year of assessment 2013, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2014, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2015, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014] (1BAA) Subject to section 37J, where a company carrying on a trade or business incurs during the basis period for the year of assessment 2016, 2017 or 2018 capital expenditure in acquiring one or more intellectual property rights for use in its trade or business, there is, in addition to the writing‑down allowance under subsection (1) or (1AA), to be made in respect of all its trades and businesses, a writing‑down allowance computed in accordance with the formula where A is — ( a ) for the year of assessment 2016, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) $1,200,000; ( b ) for the year of assessment 2017, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii); and ( c ) for the year of assessment 2018, the lower of the following: (i) such capital expenditure incurred during the basis period for that year of assessment; (ii) the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph ( a )(i) and (ii), and the lower of the amounts specified in paragraph ( b )(i) and (ii). [37/2014; 34/2016] (1BA) In subsection (1A), the amount under paragraph ( a )(ii) is substituted with “$400,000” if the company does not carry on any trade or business during the basis period for the year of assessment 2012, and the balance under paragraph ( b )(ii) is substituted with “$400,000” if the company does not carry on any trade or business during the basis period for the year of assessment 2011. (1BB) In subsection (1B) — ( a ) if the company does not carry on any trade or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the company does not carry on any trade or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and ( c ) to avoid doubt, no deduction may be made from the substituted amount in subsection (1B)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (1B)( a )(i) and (ii) if the company does not carry on any trade or business during the basis period for the year of assessment 2013, and no deduction may be made from the substituted amount in subsection (1B)( c )(ii) of the lower of the amounts specified in subsection (1B)( b )(i) and (ii) if the company does not carry on any trade or business during the basis period for the year of assessment 2014. (1BC) In subsection (1BAA) — ( a ) if the company does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”; ( b ) if the company does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and ( c ) to avoid doubt, no deduction may be made from the substituted amount in subsection (1BAA)( b )(ii) or ( c )(ii) of the lower of the amounts specified in subsection (1BAA)( a )(i) and (ii) if the company does not carry on any trade or business during the basis period for the year of assessment 2016, and no deduction may be made from the substituted amount in subsection (1BAA)( c )(ii) of the lower of the amounts specified in subsection (1BAA)( b )(i) and (ii) if the company does not carry on any trade or business during the basis period for the year of assessment 2017. [37/2014] (1C) Where a company proves to the Comptroller’s satisfaction that it has during or after the basis period for the year of assessment 2011 incurred capital expenditure by way of making one or more instalment payments under an agreement or agreements in acquiring one or more intellectual property rights for use in its trade or business, that is or are signed during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), or between the year of assessment 2024 and the year of assessment 2028 (both years inclusive), and an allowance is made under subsection (1A), (1AD), (1B) or (1BAA), those subsections apply with the following modifications: ( a ) a reference to the capital expenditure incurred on the acquisition of one or more intellectual property rights during the basis period for a year of assessment, being the basis period in which the agreement or agreements is or are signed, is a reference to the aggregate of — (i) the price or prices (excluding any finance charges) at which it might have purchased the right or all the rights that is or are the subject of the agreement or agreements for cash at the time of the signing of the agreement or agreements; and (ii) the capital expenditure incurred on the acquisition of any other intellectual property rights for use in


document_id: ita-1947
provision_ref: s19C
chapter: PART 6 - CAPITAL ALLOWANCES
section: 19C
title: Writing‑down allowances for approved cost‑sharing agreement for research and development activities
content:
19C. —(1) Subject to this section, where a person carrying on a trade or business has incurred expenditure under any cost‑sharing agreement entered into and approved on or after 17 February 2006, in respect of research and development activities for the purposes of that trade or business (called in this section the relevant trade or business), the person is, subject to such conditions as may be imposed by the Minister or such person as the Minister may appoint, entitled to a writing‑down allowance of 100% of that expenditure in the year of assessment relating to the basis period in which that expenditure was incurred. (1A) No writing‑down allowance may be made under this section in respect of any expenditure incurred during the basis period for the year of assessment 2012 or any subsequent year of assessment. (2) The Minister or such person as the Minister may appoint may specify the maximum amount of expenditure in respect of which writing‑down allowances are to be made under subsection (1). (3) No writing‑down allowance may be made under subsection (1) to any person in respect of any payment or contribution paid by the person for the right to become a party to any existing approved cost‑sharing agreement. (4) Any expenditure incurred by a person under any approved cost‑sharing agreement before the commencement of the person’s trade or business is treated for the purpose of this section as if it had been incurred by the person on the first day the person commences that trade or business. (5) Where a person to whom writing‑down allowances have been made under this section — ( a ) sells, assigns or otherwise disposes of any right under any approved cost‑sharing agreement to which the person is a party; ( b ) sells, assigns or otherwise disposes of the whole or part of any technology or know‑how developed from the research and development activities carried out under any approved cost‑sharing agreement to which the person is a party; ( c ) receives any consideration from any other person for permitting that other person to become a party to any approved cost‑sharing agreement to which the firstmentioned person is a party; or ( d ) receives any consideration from the disposal of any machinery, plant or building acquired under any approved cost‑sharing agreement to which the person is a party, the amount or value of any consideration is treated as a trading receipt of the relevant trade or business for the year of assessment which relates to the basis period in which the event in paragraph ( a ), ( b ), ( c ) or ( d ) occurs. (5A) To avoid doubt, section 19C(6) in force immediately before 17 February 2006, or subsection (5) of this section (as the case may be), continues to apply to a person to whom writing‑down allowances have previously been made under this section in respect of a cost‑sharing agreement, and deductions are allowed under section 14C for expenditure incurred or payments made under the same agreement. (6) For the purpose of subsection (5), the amount or value of the consideration to be treated as a trading receipt must not exceed the amount of writing‑down allowance made under this section. (7) Where no writing‑down allowances have been made to any person in respect of expenditure incurred by the person by virtue of subsection (2) or in respect of any payment or contribution made by the person by virtue of subsection (3), the Minister may for the purposes of subsection (5) exempt such part of the amount or value of the consideration as the Minister thinks fit. (8) Any event referred to in subsection (5) which occurs after the date on which the relevant trade or business permanently ceases is deemed to have occurred immediately before the cessation. (9) Where a person to whom writing‑down allowances have been made under this section is entitled to royalty or other payments in one lump sum or otherwise for the use of or right to use any technology or know‑how developed from the research and development activities carried out under any approved cost‑sharing agreement, such royalty or payments are deemed to be income derived from Singapore for the year of assessment which relates to the basis period in which the person is entitled to the royalty or payments, as the case may be. (10) Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where, in the basis period for any year of assessment, the relevant trade or business produces income that is exempt from tax as well as income chargeable with tax, the allowances for that year of assessment are to be made against each income for that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances. (11) Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where, in the basis period for any year of assessment, the relevant trade or business, produces income that is exempt from tax as well as income chargeable with tax, and an event referred to in subsection (5)( a ), ( b ), ( c ) or ( d ) occurs, such proportion of any amount or value of any consideration treated as a trading receipt under that subsection is exempt from tax as appears reasonable to the Comptroller in the circumstances. (12) Despite the provisions of this section, section 19C in force immediately before 17 February 2006 continues to apply and have effect in relation to any approved cost‑sharing agreement entered into before that date in respect of research and development activities. (13) In this section — “approved” means approved by the Minister or such person as the Minister may appoint; “cost‑sharing agreement” means any agreement or arrangement made by 2 or more persons to share the expenditure of research and development activities to be carried out under the agreement or arrangement.


document_id: ita-1947
provision_ref: s19D
chapter: PART 6 - CAPITAL ALLOWANCES
section: 19D
title: Writing‑down allowance for IRU
content:
19D. —(1) Subject to this section, where a person carrying on a trade, business or profession has incurred capital expenditure during or after the basis period for the year of assessment 2004 for the acquisition of an indefeasible right to use any international telecommunications submarine cable system (called in this section Indefeasible Right of Use or IRU) for the purposes of that trade, business or profession (called in this section the relevant trade, business or profession), writing‑down allowances computed in accordance with subsection (3) are to be made to the person, on due claim, in respect of that capital expenditure during the writing‑down period. (2) The writing‑down period in respect of an IRU is the number of years for which the IRU is acquired commencing with the year of assessment relating to the basis period in which the capital expenditure for the acquisition of the IRU is incurred. (3) For the purposes of this section, the writing‑down allowances in respect of an IRU are determined by the formula where A is the amount of capital expenditure incurred for the acquisition of the IRU; and B is the writing‑down period for the IRU. (4) Despite anything in this section, no writing‑down allowance may be granted to any person under subsection (1) in any year of assessment if the international telecommunications submarine cable system is not in use at the end of the basis period for that year of assessment by that person in the trade, business or profession carried on by the person. (4A) No writing‑down allowance is to be made under subsection (1) for any capital expenditure incurred after 31 December 2028. [2/2016; 41/2020] [Act 30 of 2023 wef 30/10/2023] (5) Any capital expenditure incurred for the acquisition of any IRU by a person before the commencement of the person’s trade, business or profession is treated for the purpose of this section as if it had been incurred by the person on the first day the person commences that trade, business or profession. (6) Where writing‑down allowances in respect of any IRU have been made to any person under this section and, before or at the end of the writing‑down period for the IRU, any of the following events occurs: ( a ) the IRU comes to an end without subsequent renewal by the person; ( b ) the person permanently ceases to carry on the relevant trade, business or profession; ( c ) the person sells, transfers or assigns all the IRU or so much of it as the person still owns; ( d ) the person sells, transfers or assigns part of the IRU and the amount or value of any consideration less any decommissioning cost (called in this section the consideration) for the sale, transfer or assignment is not less than the amount of capital expenditure remaining unallowed for the IRU, no writing‑down allowance in respect of the IRU may be made to the person for the year of assessment relating to the basis period in which the event occurs or for any subsequent year of assessment. (7) Where an IRU remains with any person after the date on which it permanently ceases to be used by the person for the relevant trade, business or profession, the IRU is deemed to have been sold by the person at the open‑market price on the date of permanent cessation of use. (8) Where writing‑down allowances in respect of any IRU have been made to any person under this section and, before or at the end of the writing‑down period for the IRU, any of the following events occurs: ( a ) the IRU comes to an end without subsequent renewal by the person; ( b ) the person permanently ceases to carry on the relevant trade, business or profession; ( c ) the person sells, transfers or assigns all the IRU or so much of it as the person still owns and the consideration for the sale, transfer or assignment is less than the amount of capital expenditure remaining unallowed for the IRU, there is to be made to the person for the year of assessment relating to the basis period in which the event occurs, a balancing allowance equal to — ( d ) in the case where the amount of capital expenditure remaining unallowed for the IRU exceeds the consideration for the sale, transfer or assignment of the IRU, the excess; or ( e ) in any other case, the amount of capital expenditure remaining unallowed for the IRU. (9) Where writing‑down allowances in respect of any IRU have been made to any person under this section and the person sells, transfers or assigns all or any part of the IRU and the consideration for the sale, transfer or assignment of the IRU exceeds the amount of capital expenditure remaining unallowed for the IRU (if any) there is to be made on the person, a balancing charge, which is based on an amount equal to — ( a ) the excess of the consideration for the sale, transfer or assignment of the IRU over the amount of capital expenditure remaining unallowed for the IRU; or ( b ) the consideration for the sale, transfer or assignment of the IRU, where the amount of capital expenditure remaining unallowed for the IRU is nil, and the balancing charge is deemed as income for the year of assessment relating to the basis period in which the sale, transfer or assignment of the IRU occurs. (10) Where writing‑down allowances in respect of any IRU have been made to any person under this section and the person sells, transfers or assigns any part of the IRU, and the consideration for the sale, transfer or assignment of the IRU is less than the amount of capital expenditure remaining unallowed for the IRU, the amount of any writing‑down allowances made in respect of the IRU for the year of assessment relating to the basis period in which the sale, transfer or assignment of the IRU occurs or any subsequent year of assessment is the amount determined by the formula where C is the amount of capital expenditure remaining unallowed at the time of the sale, transfer or assignment of the IRU; D is the consideration for the sale, transfer or assignment of that part of the IRU; and E is the number of complete years of the writing‑down period remaining at the beginning of the year of assessment relating to the basis period in which the sale, transfer or assignment of the IRU occurs, and so on for any subsequent sale, transfer or assignment of the IRU. (11) Despite subsections (9) and (10), the total amount on which a balancing charge is made in respect of any capital expenditure incurred for the acquisition of an IRU must not exceed the total writing‑down allowances actually made for the IRU in respect of that capital expenditure, less, if a balancing charge has previously been made in respect of that capital expenditure, the amount on which that balancing charge was made. (12) Where the sale, transfer or assignment of all or part of any IRU is made at less than the open‑market price, then for the purpose of determining the amount of any balancing allowance or balancing charge, the event is treated as if it had given rise to sale, transfer or assignment moneys of an amount equal to the open‑market price of the IRU. (13) Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where, in the basis period for any year of assessment, the relevant trade, business or profession produces income that is exempt from tax as well as income chargeable with tax, the allowances for that year of assessment are to be made against each income in that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances. (14) Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where, in the basis period for any year of assessment, the relevant trade, business or profession produces income that is exempt from tax as well as income chargeable with tax, and any balancing allowance or balancing charge arises to be made — ( a ) the balancing allowance is to be made against each income for that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances; and ( b ) such proportion of the balancing charge is exempt from tax as appears reasonable to the Comptroller in the circumstances. (15) In this section — “capital expenditure” does not include legal fees, registration fees, stamp duty and other costs related to the acquisition of any IRU; “capital expenditure remaining unallowed”, in relation to any IRU, means the amount of capital expenditure incurred for the acquisition of the IRU less — ( a ) any writing‑down allowances made in respect of that capital expenditure for the years of assessment before the year of assessment relating to the basis period in which any event referred to in subsection (6), (8), (9) or (10) occurs; and ( b ) the consideration for any prior sale, transfer or assignment by the person who incurred the capital expenditure of any part of the IRU acquired by the capital expenditure; “international telecommunications submarine cable system” means an international submarine cable that is laid in the sea and includes its cable landing station and any other equipment ancillary to the submarine cable system; “open‑market price”, in relation to any IRU, means — ( a ) the price which the IRU would have fetched if sold in the open market at the time any event referred to in subsection (6), (8), (9) or (10) occurs; or ( b ) where the Comptroller is satisfied by reason of the special nature of any IRU that it is not practicable to determine the open‑market price, such other value as appears to the Comptroller to be reasonable in the circumstances. (16) For the purposes of this section, any sale, transfer or assignment of any IRU which occurs after the date on which a relevant trade, business or profession permanently ceases is deemed to have occurred immediately before the cessation.


document_id: ita-1947
provision_ref: s19E
chapter: PART 6 - CAPITAL ALLOWANCES
section: 19E
title: Use of open‑market price for making allowances under sections 19, 19A and 19D
content:
19E. —(1) This section applies for the purpose of making an allowance under section 19, 19A or 19D for capital expenditure incurred in acquiring any machinery, plant or IRU (called in this section the property), and applies despite anything in that section. [27/2021] (2) If the capital expenditure (not being a deposit or an instalment payment) incurred for the acquisition of the property exceeds the open‑market price for the property, then, for the purpose of determining the amount of allowances for the capital expenditure under section 19, 19A or 19D, the Comptroller may treat the open‑market price as the amount of that expenditure. [27/2021] (3) In subsection (2), the open‑market price for the property is either — ( a ) the price which the property could have been purchased in the open market on the date of its acquisition; or ( b ) where the Comptroller is satisfied by reason of the special nature of the property that it is not practicable to determine the price mentioned in paragraph ( a ), such other value as appears to the Comptroller to be reasonable in the circumstances. [27/2021] (4) If the capital expenditure consists of deposits and instalment payments and the total amount of the deposits and instalment payments (excluding any finance charges) made in any basis period exceeds a proportion of the open‑market price for the property as computed under subsection (5), then, for the purpose of determining the amount of allowances for the expenditure under section 19, 19A or 19D, the Comptroller may treat that proportion of the open‑market price as the amount of that expenditure. [27/2021] (5) In subsection (4), the proportion of the open‑market price for the property is an amount computed by the formula where — ( a ) A is the total amount of the deposits and instalment payments (excluding any finance charges) made in the basis period; ( b ) B is the total amount of all the deposits and instalment payments (excluding any finance charges) payable to acquire the property; and ( c ) C is either — (i) the price (excluding any finance charges) which the property could have been purchased in the open market on the date of its acquisition; or (ii) where the Comptroller is satisfied by reason of the special nature of the property that it is not practicable to determine the price mentioned in sub‑paragraph (i), such other value as appears to the Comptroller to be reasonable in the circumstances. [27/2021] (6) In this section, “IRU” has the meaning given by section 19D(1). [27/2021]


document_id: ita-1947
provision_ref: s20
chapter: PART 6 - CAPITAL ALLOWANCES
section: 20
title: Balancing allowances and charges for machinery or plant
content:
20. —(1) Except as provided in this section, where at any time after the setting up and on or before the permanent discontinuance of a trade, profession or business, any event occurs whereby machinery or plant in respect of which allowances under section 19 or 19A have been made to a person carrying on a trade, profession or business — ( a ) ceases to belong to that person (whether on a sale of the machinery or plant or in any other circumstances of any description); or ( b ) while continuing to belong to that person — (i) in a case where the machinery or plant which — (A) was provided for any research and development undertaken by that person directly in Singapore or by a research and development organisation on that person’s behalf in Singapore; and (B) was not provided for the purpose of a trade or business carried on by that person, permanently ceases to be used for any research and development undertaken by that person directly in Singapore or by a research and development organisation on that person’s behalf in Singapore, and is not used for the purpose of a trade, profession or business carried on by that person; or (ii) in any other case, permanently ceases to be used for the purpose of a trade, profession or business carried on by that person in Singapore (whether by reason of the discontinuance of the trade, profession or business, or discontinuance of use of such machinery or plant in a trade, profession or business which continues to be carried on in Singapore), an allowance or a charge, to be known as a balancing allowance or a balancing charge, is in the circumstances mentioned in this section to be made to or (as the case may be) on that person for the year of assessment in the basis period for which that event occurs. (1A) Where the property in machinery or plant passes at less than the open‑market price, then for the purpose of determining the amount of any balancing allowance or balancing charge the event is treated as if it had given rise to sale moneys of an amount equal to the open‑market price of the machinery or plant. (2) Where machinery or plant continues to belong to that person after the date on which it permanently ceases to be used for the purposes of a trade, profession or business carried on by that person in Singapore, or (as the case may be) for the purpose of any research and development undertaken by that person directly in Singapore or by a research and development organisation on that person’s behalf in Singapore, it is deemed to have been sold on the date of permanent cessation of use at the open‑market price on that date. (2A) Where there are no sale, insurance, salvage or compensation moneys or where the amount of the capital expenditure of the person in question on the provision of the machinery or plant still unallowed as at the time of the event exceeds those moneys, a balancing allowance is to be made, and the amount thereof is the amount of the expenditure still unallowed as aforesaid or (as the case may be) the excess thereof over those moneys. (3) If the sale, insurance, salvage or compensation moneys exceed the amount (if any) of the said expenditure still unallowed as at the time of the event, a balancing charge is to be made, and the amount on which it is made is an amount equal to the excess or, where the said amount still unallowed is nil, to those moneys. (4) Despite anything in subsection (3), the amount on which a balancing charge is made on a person must not in any case exceed — ( a ) the aggregate of the initial allowance (if any) and the annual allowances (if any) made to the person under section 19 in respect of the expenditure in question; and ( b ) the allowances (if any) made to the person under section 19A in respect of the expenditure in question. [27/2021] (5) Despite anything in this section but subject to subsection (6A), where a balancing allowance or balancing charge falls to be made under subsection (1) in respect of a motor car to which section 19(3) applies, the sum to be taken in lieu of the open‑market price or sale, insurance, salvage or compensation moneys for the purpose of calculating such balancing allowance or charge is ascertained in accordance with the formula where A is the open‑market price or sale, insurance, salvage or compensation moneys in respect of the motor car; and B is the capital expenditure incurred in respect of the motor car. (6) Despite anything in this section, no balancing allowance may be made in respect of a motor car within the meaning of section 19(4)( a ) which is not, for any basis period after the basis period for the year of assessment 1981, registered as a business service passenger vehicle for the purposes of the Road Traffic Act 1961. (6A) Unless otherwise provided in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where, in the basis period for any year of assessment, the trade, profession or business, for which purpose the machinery or plant is provided, produces income that is exempt from tax as well as income chargeable with tax, and any balancing allowance or balancing charge arises to be made — ( a ) the balancing allowance is to be made against each income for that year of assessment in such proportion as appears reasonable to the Comptroller in the circumstances; and ( b ) such proportion of the balancing charge is exempt from tax as appears reasonable to the Comptroller in the circumstances. (6B) Section 14C(4) and (5) applies in relation to the balancing allowance to be made to a person under subsection (1)( b )(i) as it applies in relation to the deduction of the expenditure and payments referred to in section 14C(1)( aa ), ( c ) and ( f ), subject to the following modifications: ( a ) a reference to the amount of the expenditure or payments is a reference to the amount of the balancing allowance; ( b ) a reference to unabsorbed losses is a reference to unabsorbed allowances; and ( c ) a reference to a specified amount of the expenditure or payments is a reference to an amount computed in accordance with the formula where A is the amount of the balancing allowance that could have been made against the income of the person under subsection (1)( b )(i) if the income had been subject to tax at the rate specified in section 43(1)( a ); B is the rate of tax specified in section 43(1)( a ); and C is — (i) in a case where the concessionary income (as defined in section 14C(5)) derived by the person from the trade or business carried on by the person is subject to tax at a single concessionary rate of tax, that rate; or (ii) in a case where the concessionary income derived by the person from the trade or business carried on by the person is subject to tax at 2 or more concessionary rates of tax, the higher or highest of those rates. (6C) Despite anything in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, where a balancing charge falls to be made on a person under subsection (1)( b )(i), the amount of the charge is deemed to be income of that person that is chargeable to tax at the rate of tax specified in section 43(1)( a ). (7) In this section, “open‑market price”, in relation to any machinery or plant, means the price which the machinery or plant would have fetched if sold in the open market at the time of the event in question; except that where the Comptroller is satisfied by reason of the special nature of any machinery or plant that it is not practicable to determine an open‑market price, the Comptroller may adopt such other value as appears to the Comptroller to be reasonable in the circumstances.


document_id: ita-1947
provision_ref: s21
chapter: PART 6 - CAPITAL ALLOWANCES
section: 21
title: Replacement of machinery or plant
content:
21. —(1) Where machinery or plant in the case of which any of the events mentioned in section 20(1) has occurred is replaced by the owner thereof and a balancing charge falls to be made on the owner by reason of that event or, but for this section, would have fallen to be made on the owner by reason thereof, then, if by written notice to the Comptroller the owner so elects, this section has effect. (2) If the amount on which the charge would have been made is greater than the capital expenditure on providing the new machinery or plant — ( a ) the charge is to be made only on an amount equal to the difference; ( b ) no initial allowance, no balancing allowance and no annual allowance may be made or allowed in respect of the new machinery or plant or the expenditure on the provision thereof; and ( c ) in considering whether any (and if so what) balancing charge falls to be made in respect of the expenditure on the new machinery or plant, there is deemed to have been made in respect of that expenditure an initial allowance equal to the full amount of that expenditure. (3) If the capital expenditure on providing the new machinery or plant is equal to or greater than the amount on which the charge would have been made — ( a ) the charge must not be made; ( b ) the amount of any initial allowance in respect of the said expenditure is to be calculated as if the expenditure had been reduced by the amount on which the charge would have been made; ( c ) in considering what annual allowance is to be made in respect of the new machinery or plant, there is to be left out of account a proportion of the machinery or plant equal to the proportion which the amount on which the charge would have been made bears to the amount of the said expenditure; and ( d ) in considering whether any (and if so what) balancing allowance or balancing charge falls to be made in respect of the new machinery or plant, the initial allowance in respect thereof is deemed to have been increased by an amount equal to the amount on which the charge would have been made. (4) This section does not apply to the provision of any new motor car for which no allowance is allowed by virtue of section 19(5). (5) For the purpose of this section, where the capital expenditure incurred in providing, in the basis period for the year of assessment 2013 or any preceding year of assessment, a new motor car registered outside Singapore and used exclusively outside Singapore exceeds $35,000, the expenditure incurred is deemed to be $35,000.


document_id: ita-1947
provision_ref: s22
chapter: PART 6 - CAPITAL ALLOWANCES
section: 22
title: Expenditure on machinery or plant
content:
22. —(1) Expenditure on the provision of machinery or plant includes capital expenditure on alterations to an existing building incidental to the installation of that machinery or plant for the purposes of the trade, profession or business. [39/2017] (2) Expenditure on the provision of machinery or plant excludes any option premium paid under an option agreement entered into for the purpose of hedging against the cost of the acquisition of such machinery or plant. [39/2017]


document_id: ita-1947
provision_ref: s22A
chapter: PART 6 - CAPITAL ALLOWANCES
section: 22A
title: Order of set‑off of allowances
content:
22A. —(1) Where for any year of assessment the allowances consist of allowances a person is entitled to or allowances made to a person under section 16, 17, 18A (repealed), 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 for that year of assessment and any previous year of assessment added to and deemed to form part of the corresponding allowance for the year of assessment under section 23(1), the allowances are to be deducted in the following order: ( a ) firstly, any balance of allowance from any previous year of assessment added to and deemed to form part of the corresponding allowance for the year of assessment under section 23(1); and ( b ) secondly, any allowance for that year of assessment falling to be made under section 16, 17, 18A (repealed), 18B, 18C, 19, 19A, 19B, 19C, 19D or 20. (2) For the purposes of subsection (1)( a ), the balance of allowance for the earliest year of assessment is deemed to have been deducted first, followed by the balance of allowance for the next earliest year of assessment, and so on.


document_id: ita-1947
provision_ref: s23
chapter: PART 6 - CAPITAL ALLOWANCES
section: 23
title: Carry forward of allowances
content:
23. —(1) Where, in any year of assessment, full effect cannot, by reason of an insufficiency of gains or profits chargeable for that year of assessment, be given to any allowance falling to be made under section 16, 17, 18A (repealed), 18B, 18C, 19, 19A, 19B, 19C, 19D or 20, then, so long as the person entitled thereto continues to carry on the trade, profession or business in respect of the gains or profits of which the allowance falls to be made, the balance of the allowance is, subject to subsection (3), to be added to, and is deemed to form part of, the corresponding allowance (if any) for the next succeeding year of assessment, and, if no such corresponding allowance falls to be made for that year, is deemed to constitute the corresponding allowance for that year, and so on for subsequent years of assessment. (2) Where any person entitled to the allowances under sections 16, 17, 18B and 18C in respect of a building or structure derives income from the letting of that building or structure, subsection (1) applies, in relation to the allowances under those sections, to the person so long as the person continues to derive such income, whether or not the person is carrying on a business in respect of the letting of the building or structure. (3) Where any allowance for any year of assessment falling to be made to any person under section 16, 17, 18A (repealed), 18B, 18C, 19, 19A, 19B, 19C, 19D or 20 is deducted against income of the person from other sources under section 35(1), transferred to a claimant company under section 37B or to a spouse under section 37C or 37E, or deducted against income for the immediate preceding year of assessment under section 37D(1) or any of the 3 immediate preceding years of assessment under section 37D(1A), the amount of such allowance must be deducted from the balance in subsection (1). [39/2017; 41/2020] (4) No balance may be added to and be deemed to form part of the corresponding allowance (if any) to be given to a company under subsection (1) unless the Comptroller is satisfied that the shareholders of the company on the last day of the year in which the allowances arose were substantially the same as the shareholders of the company on the first day of the year of assessment in which such allowances would otherwise be available under this section and such a balance is not allowed in any subsequent year of assessment. (5) The Minister or such person as the Minister may appoint may, where there is a substantial change in the shareholders of a company and the Minister or appointed person is satisfied that such change is not for the purpose of deriving any tax benefit or obtaining any tax advantage, exempt that company from the provisions of subsection (4). (6) Upon such exemption, the balance of the allowances referred to in subsection (1) may be added to and be deemed to form part of the corresponding allowance to be given to that company under that subsection but only for deduction against the gains or profits derived from the same trade or business in respect of which the allowances would have been made. (7) For the purpose of subsection (4) — ( a ) the shareholders of a company at any date are not deemed to be substantially the same as the shareholders at any other date unless, on both those dates, not less than 50% of the total number of issued shares of the company are held by or on behalf of the same persons; ( b ) shares in a company held by or on behalf of another company are deemed to be held by the shareholders of the last mentioned company; and ( c ) shares held by or on behalf of the trustee of the estate of a deceased shareholder or by or on behalf of the person entitled to those shares as beneficiaries under the will or any intestacy of a deceased shareholder are deemed to be held by that deceased shareholder. (8) For the purpose of subsection (7), where any part of a share of a shareholder is not fully paid up, there is to be disregarded a proportion equal to where A is the amount that has not been paid in respect of the share; and B is the total amount payable in respect of the share.


document_id: ita-1947
provision_ref: s24
chapter: PART 6 - CAPITAL ALLOWANCES
section: 24
title: Special provisions as to certain sales
content:
24. —(1) This section, except subsection (5), has effect in relation to any sale of any property where the buyer is a body of persons over whom the seller has control, or the seller is a body of persons over whom the buyer has control, or both the seller and buyer are bodies of persons and some other person has control over both of them, and the sale is not one to which section 33 applies. (2) References in subsection (1) to a body of persons include references to a company or a partnership. (3) Where the parties to the sale by written notice to the Comptroller so elect — ( a ) the like consequences ensue for the purposes of sections 16 to 21 as would have ensued if the property had been sold — (i) in the case of an industrial building or structure, for a sum equal to the residue of expenditure on the construction or purchase (pursuant to a sale and purchase agreement entered into on or after 1 January 2006) of that building or structure immediately before the sale, computed in accordance with section 17; (ii) in the case of machinery or plant, for a sum equal to the amount of the expenditure on the provision thereof still unallowed immediately before the sale, computed in accordance with section 20; (iii) in the case of an Indefeasible Right of Use, for a sum equal to the amount of capital expenditure remaining unallowed immediately before the sale, computed in accordance with section 19D; ( b ) despite anything in section 19, where the sale is a sale of machinery or plant, no initial allowance may be made to the buyer; ( c ) despite anything in section 19A, where the sale is a sale of machinery or plant, the allowances provided under that section continue to be available as if no sale had taken place; ( d ) despite anything in section 19D, where the sale is a sale of an Indefeasible Right of Use, the writing‑down allowances provided under that section continue to be available as if no sale had taken place; and ( e ) despite anything in the preceding provisions of this section or in sections 17, 19D and 20, such balancing charge (if any) is to be made on the buyer on any event occurring after the date of the sale as would have fallen to be made on the seller if the seller had continued to own the property and had done all such things and been allowed all such allowances and deductions in connection therewith as were done by or allowed to the buyer. [27/2021] (3A) In subsection (3), “Indefeasible Right of Use” has the meaning given by section 19D(1). [27/2021] (4) No election may be made under subsection (3) unless before the sale in the case of the seller and after the sale in the case of the buyer the property is used in the production of income chargeable under the provisions of this Act and unless the machinery or plant was not leased by the seller to the buyer before the sale. (4A) No election may be made under subsection (3) for the sale of an industrial building or structure for which an option to purchase is granted or a sale and purchase agreement is entered into on or after 23 February 2010, or which is transferred on or after that date. (4B) Subsection (4A) does not apply to a transfer of property to which section 34C(8) and (9) apply. (5) Where a change occurs in a partnership of persons carrying on any trade, business or profession by reason of retirement or death, or the dissolution of the partnership as to one or more of the partners, or the admission of a new partner, and where no election is made under subsection (3), any property of the partnership is treated as if the property had been sold — ( a ) to all the remaining partners and new partners of the partnership on the date the change occurs; and ( b ) at the open‑market price. (6) In subsection (5), “open‑market price” has the meaning given by section 20(7).


document_id: ita-1947
provision_ref: s25
chapter: PART 6 - CAPITAL ALLOWANCES
section: 25
title: Special provisions as to certain transfers
content:
25. —(1) This section has effect in relation to any transfer of any property without consideration as a result of — ( a ) a conversion of a firm to a limited liability partnership under section 26 of the Limited Liability Partnerships Act 2005; ( b ) a conversion of a private company to a limited liability partnership under section 27 of the Limited Liability Partnerships Act 2005; ( c ) a conversion of any business carried on by an individual proprietor to one carried on by a firm, where the individual proprietor is a partner of, and has control over, the firm after the conversion; or ( d ) a conversion of any business carried on by a firm to one carried on by an individual proprietor, where the individual proprietor was a partner of, and had control over, the firm before the conversion, and the transfer is not one to which section 33 applies. [27/2021] (2) For the purposes of subsection (1), “conversion” means a transfer of the property, assets, interests, rights, privileges, liabilities, obligations and undertaking — ( a ) in the case of subsection (1)( a ) — of the partners of the firm relating to the business to the limited liability partnership; ( b ) in the case of subsection (1)( b ) — of the private company to the limited liability partnership; ( c ) in the case of subsection (1)( c ) — of the individual proprietor relating to the business to the partners of the firm; or ( d ) in the case of subsection (1)( d ) — of the partners of the firm relating to the business to the individual proprietor. [27/2021] (3) Where the parties to the transfer of the property by written notice to the Comptroller so elect — ( a ) the like consequences ensue for the purposes of sections 19, 19A, 19D, 20 and 21 as would have ensued if the property had been transferred — (i) in the case of machinery or plant — for a sum equal to the amount of the expenditure on the provision of the machinery or plant remaining unallowed immediately before the transfer, computed in accordance with section 20; or (ii) in the case of an IRU — for a sum equal to the amount of capital expenditure remaining unallowed immediately before the transfer, computed in accordance with section 19D; ( b ) despite anything in section 19, where the transfer is a transfer of machinery or plant, no initial allowance is to be made to the transferee; ( c ) despite anything in section 19A, where the transfer is a transfer of machinery or plant, allowances provided under that section continue to be available as if no transfer had taken place; ( d ) despite anything in section 19D, where the transfer is a transfer of an IRU, the writing‑down allowances provided under that section continue to be available as if no transfer had taken place; and ( e ) despite anything in paragraphs ( a ) to ( d ) or in sections 19D and 20, such balancing charge (if any) must be made on the transferee on any event occurring after the date of the transfer as would have fallen to be made on the transferor if the transferor had continued to own the property and had done all the things and been allowed all the allowances and deductions in connection with the property as were done by or allowed to the transferee. [27/2021] (4) No election may be made under subsection (3) unless, before the transfer in the case of the transferor and after the transfer in the case of the transferee, the property is used in the production of income chargeable under the provisions of this Act. [27/2021] (5) In this section — “firm” and “individual proprietor” have the meanings given by section 2(1) of the Business Names Registration Act 2014; “IRU” has the meaning given by section 19D(1); “private company” has the meaning given by section 2(1) of the Limited Liability Partnerships Act 2005. [27/2021]


document_id: ita-1947
provision_ref: s26
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 26
title: Profits of insurers
content:
26. —(1) Subject to sections 34A, 34AA and 34AAA, this section has effect despite anything to the contrary in this Act, except that nothing in this section affects the chargeability to tax of any income of an insurer under section 10. [39/2017] [Act 33 of 2022 wef 04/11/2022] Separate accounts to be maintained for various businesses (2) An insurer must maintain separate accounts for income derived by it from carrying on each of the following businesses: ( a ) onshore life business; ( b ) offshore life business; ( c ) the business (other than the business of life assurance) of insuring and reinsuring onshore risks; ( d ) the business (other than the business of life assurance) of insuring and reinsuring offshore risks. [39/2017] Insurers other than life insurers (3) In the case of an insurer whether mutual or proprietary (other than a life insurer) where the gains or profits accrue in part outside Singapore, the gains or profits on which tax is payable are to be ascertained by — ( a ) taking the gross premiums and interest and other income received or receivable in Singapore (less any premiums returned to the insured and premiums paid on reinsurances); ( b ) either — (i) deducting from the balance so arrived at the net increase between the beginning and ending values of the period for which the gains or profits are ascertained, of the liabilities of the insurer in respect of policies other than life policies, both values being determined in accordance with the Insurance Act 1966 after deducting any liability in respect of reinsurance ceded to a reinsurer; or (ii) adding to the balance so arrived at the net decrease between the beginning and ending values of the period for which the gains or profits are ascertained, of the liabilities of the insurer in respect of policies other than life policies, both values being determined in accordance with the Insurance Act 1966 after deducting any liability in respect of reinsurance ceded to a reinsurer; and ( c ) [ Deleted by Act 39 of 2017 ] ( d ) from the net amount so arrived at, deducting the actual losses (less the amount recovered in respect thereof under reinsurance), the distribution expenses and management expenses incurred in the production of the income referred to in paragraph ( a ) and, in respect of a branch in Singapore, a fair proportion of the expenses of its head office. [39/2017; 32/2019] (4) For the purposes of subsection (3), in ascertaining the gains or profits derived by an insurer from carrying on the business (other than the business of life assurance) of insuring and reinsuring any risks for the purposes of any concessionary rate of tax or exemption from tax prescribed by regulations made under section 43C — ( a ) no income other than underwriting income or income from such dividends, interest and gains or profits realised from the sale of investments as may be specified in those regulations is to be included; ( b ) income in respect of dividends, interest and gains or profits realised from the sale of investments must be apportioned in such manner as may be prescribed by those regulations; and ( c ) any item of expenditure not directly attributable to that business must be apportioned in such manner as may be prescribed by those regulations. [39/2017] (5) For the purposes of subsection (3)( b ), if, during the period for which the gains or profits are ascertained, any insurance business (excluding life business) is transferred by or to the insurer, then — ( a ) in a case where the business is transferred by the insurer, the liabilities of the insurer immediately before the date of the transfer, in respect of policies that form part of that business, are to be added to the ending value mentioned in that provision; and ( b ) in a case where the business is transferred to the insurer, the liabilities of the transferor immediately before the date of the transfer, in respect of policies that form part of that business, are to be added to the beginning value mentioned in that provision. [39/2017] Life insurers (6) In the case of a life insurer, whether mutual or proprietary, the gains or profits on which tax is payable are to be ascertained by taking the aggregate of — ( a ) in the case of insurance funds established and maintained for Singapore policies, the amount computed in the following manner: (i) taking the amount allocated out of the participating fund by way of bonus to the participating policies in accordance with section 16(7)( b ) of the Insurance Act 1966; (ii) adding thereto the amount allocated to the surplus account of the participating fund in accordance with section 16(7)( c ) of the Insurance Act 1966; (iii) deducting from the balance so arrived at any receipt of the participating fund which is not chargeable to tax and adding thereto any expense of the participating fund which is not deductible for the purposes of this Act; (iv) adding thereto the amount relating to investment income earned on assets representing the balance in the surplus account of the participating fund, after deducting any receipt which is not chargeable to tax and not allowing as a deduction any expense which is not deductible for the purposes of this Act; (iv a ) adding thereto an amount allocated to the surplus account of the participating fund by the insurer in accordance with regulations made under section 16(8) of the Insurance Act 1966, being an amount that does not exceed 1/9th of the tax payable at the rate under section 43(9) on the amount mentioned in sub‑paragraph (i); (iv b ) adding thereto any amount (other than the amounts mentioned in sub‑paragraphs (iv) and (iv a )) allocated to the surplus account of the participating fund by the insurer in accordance with regulations made under section 16(8) of the Insurance Act 1966, but excluding any portion that is not chargeable to tax; (v) adding thereto the balance so arrived at the onshore life insurance surplus in relation to the non‑participating fund and the investment‑linked fund; ( b ) in the case of shareholders’ fund established in Singapore, the income therein less any expenses (including management expenses) incurred in the production of such income; and ( c ) in the case of insurance funds established and maintained for offshore policies, the amount computed in the following manner: (i) taking the amount allocated out of the participating fund by way of bonus to the participating policies in accordance with section 16(7)( b ) of the Insurance Act 1966; (ii) adding thereto the amount allocated to the surplus account of the participating fund in accordance with section 16(7)( c ) of the Insurance Act 1966; (iii) deducting from the balance so arrived at any receipt of the participating fund which is not chargeable to tax and adding thereto any expense of the participating fund which is not deductible for the purposes of this Act; (iv) adding thereto the amount relating to investment income earned on assets representing the balance in the surplus account of the participating fund, after deducting any receipt which is not chargeable to tax and not allowing as a deduction any expense which is not deductible for the purposes of this Act; (iv a ) adding thereto an amount allocated to the surplus account of the participating fund by the insurer in accordance with regulations made under section 16(8) of the Insurance Act 1966, being an amount that does not exceed 1/9th of the tax payable at the rate under section 43(9) on the amount mentioned in sub‑paragraph (i); (iv b ) adding thereto any amount (other than the amounts mentioned in sub‑paragraphs (iv) and (iva)) allocated to the surplus account of the participating fund by the insurer in accordance with regulations made under section 16(8) of the Insurance Act 1966, but excluding any portion that is not chargeable to tax; (v) adding thereto the offshore life insurance surplus in relation to the non‑participating fund and the investment‑linked fund. [39/2017; 27/2021] (7) Despite subsection (6), where a life insurer is approved under section 43C before 1 June 2017 and its income is subject to tax at the concessionary rate by regulations made under section 43C(1)( a ), the following paragraphs apply for the purposes of ascertaining that income: ( a ) only such part of the following income as may be specified in those regulations is to be included: (i) the amount in relation to insurance funds established and maintained for offshore policies, computed in the following manner: (A) taking the amount allocated out of the participating fund by way of bonus to the participating policies in accordance with section 16(7)( b ) of the Insurance Act 1966; (B) adding thereto the amount allocated to the surplus account of the participating fund in accordance with section 16(7)( c ) of the Insurance Act 1966; (C) deducting from the balance so arrived at any receipt of the participating fund which is not chargeable to tax and adding thereto any expense of the participating fund which is not deductible for the purposes of this Act; (D) adding thereto the amount relating to investment income earned on assets representing the balance in the surplus account of the participating fund, after deducting any receipt which is not chargeable to tax and not allowing as a deduction any expense which is not deductible for the purposes of this Act; (DA) adding thereto an amount allocated to the surplus account of the participating fund by the insurer in accordance with regulations made under section 16(8) of the Insurance Act 1966, being an amount that does not exceed 1/9th of the tax payable at the rate under section 43(9) on the amount mentioned in sub‑paragraph (A); (DB) adding thereto any amount (other than the amounts mentioned in sub‑paragraphs (D) and (DA)) allocated to the surplus account of the participating fund by the insurer in accordance with regulations made under section 16(8) of the Insurance Act 1966, but excluding any portion that is not chargeable to tax; (E) adding thereto the offshore life insurance surplus in relation to the non‑participating fund and the investment‑linked fund; and (ii) the income of the shareholders’ fund established in Singapore as is attributable to the offshore life business; and ( b ) the income referred to in paragraph ( a ) and any item of expenditure not directly incurred in the production of such income must be apportioned in such manner as may be prescribed by those regulations. [39/2017; 27/2021] (7A) Despite subsection (6), where a life insurer is approved under section 43C on or after 1 June 2017 and its income is subject to tax at a concessionary rate by regulations made under section 43C(1)( aa ), the following paragraphs apply for the purposes of ascertaining that income: ( a ) only such part of the following income relating to reinsurance policies as may be specified in those regulations may be included: (i) the onshore life insurance surplus, and offshore life insurance surplus (as the case may be), of the insurer; (ii) the income of the shareholders’ fund established in Singapore attributable to the insurer’s onshore life reinsurance business and offshore life reinsurance business, as the case may be; ( b ) the income in paragraph ( a ) and any item of expenditure not directly incurred in the production of such income must be apportioned in the manner prescribed (if any) by those regulations. [39/2017] (8) In ascertaining the gains or profits of a life insurer whether mutual or proprietary — ( a ) the Comptroller must determine the manner and extent to which — (i) any allowances under section 19, 19A, 20, 21, 22 or 23 and expenses and donations allowable under this Act are to be deducted; and (ii) any losses incurred by the insurer may be deducted under section 37; ( aa ) allowances under section 19, 19A, 20, 21, 22 or 23 or losses or donations allowable under section 37 may be deducted against any part of the income of the insurer from a participating fund that is apportioned to pol


document_id: ita-1947
provision_ref: s26A
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 26A
title: Ascertainment of income of member of Lloyd’s syndicate
content:
26A. —(1) Where a business of insuring and reinsuring risks is carried on by any member of Lloyd’s through a syndicate formed to carry on the business in Singapore — ( a ) the income of the member of Lloyd’s from the syndicate in the basis period for any year of assessment is deemed to be the share to which the member was entitled during that period in the income of the syndicate; and ( b ) the statutory income of the member of Lloyd’s from the syndicate is to be computed in accordance with section 35 by treating the member’s share of the income of the syndicate as if it were income of a trade, business, profession or vocation carried on or exercised by the member. (2) Sections 36 (as it applies by the operation of section 36C(1)) and 36C do not apply to any Lloyd’s Scottish limited partnership carrying on a business of insuring and reinsuring risks in Singapore, and sections 35 and 43(1)( c ) apply, with the necessary modifications, to such partnership as if it were a person (other than a company or an individual) not resident in Singapore. (2A) Sections 36 (as it applies by the operation of section 36A(2)) and 36A do not apply to any Lloyd’s limited liability partnership carrying on a business of insuring and reinsuring risks in Singapore, and sections 35 and 43(1)( c ) apply, with the necessary modifications, to such partnership as if it were a person (other than a company or an individual) not resident in Singapore. [32/2019] (2B) For the year of assessment 2015 and every subsequent year of assessment, section 37A applies, with the necessary modifications, to — ( a ) any Lloyd’s limited liability partnership; or ( b ) any Lloyd’s Scottish limited partnership, carrying on a business of insuring and reinsuring risks in Singapore whose income for that year of assessment is subject to tax at different rates, as that section applies to a company whose income for any year of assessment is subject to tax at different rates. [37/2014] (2C) To avoid doubt, subsection (2B) applies to any amount of allowance, loss or donation of the Lloyd’s limited liability partnership or the Lloyd’s Scottish limited partnership carried forward to the year of assessment from an earlier year of assessment. [37/2014] (3) Section 53 applies, with the necessary modifications, to any non‑resident member of Lloyd’s carrying on a business of insuring and reinsuring risks through any syndicate formed to carry on that business in Singapore as that section applies to a person not resident in Singapore. (4) The tax chargeable for any year of assessment on the income of any non‑resident member of Lloyd’s carrying on a business of insuring and reinsuring risks through all syndicates formed to carry on the business in Singapore of which the non‑resident member is a member must be aggregated with that of all other non‑resident members of Lloyd’s of those syndicates, and is assessable in the name of the agent. (5) The agent must — ( a ) when required by the Comptroller by notice in the Gazette under section 62(1) or by written notice under section 62(3), make a return of income for the year of assessment specified in the notice and furnish such particulars as may be required for the purpose of ascertaining the income (if any) for which any member of Lloyd’s carrying on a business of insuring and reinsuring risks through any syndicate formed to carry on the business in Singapore, is chargeable to tax; and ( b ) if a return is not made under paragraph ( a ) for any year of assessment, furnish to the Comptroller an estimate of the aggregate amount of chargeable income of every non‑resident member of Lloyd’s carrying on a business of insuring and reinsuring risks through any syndicate formed to carry on the business in Singapore, within 3 months after the end of the accounting period relating to that year of assessment of that member, or such extended time as the Comptroller may allow. [Act 33 of 2022 wef 04/11/2022] (6) In this section — “agent” means Lloyd’s of London (Asia) Pte Ltd or such other person as the Comptroller may determine; “Council of Lloyd’s” means the Council of Lloyd’s established by the Lloyd’s Act 1982 of the United Kingdom; “Lloyd’s” means the society of underwriters known in the United Kingdom as Lloyd’s and incorporated by the Lloyd’s Act 1871 of the United Kingdom; “Lloyd’s limited liability partnership” means any limited liability partnership formed under the law of any part of the United Kingdom which is a member of Lloyd’s; “Lloyd’s Scottish limited partnership” means a limited partnership formed under the laws of the Scotland which is a member of Lloyd’s; “member of Lloyd’s” means a person admitted to membership of Lloyd’s as an underwriting member and includes, where the context so requires, any person who has ceased to be a member of Lloyd’s and any administrator, administrative receiver, committee, curator bonis, executor, liquidator, manager, personal representative, supervisor or trustee in bankruptcy, or any other person by law entitled or bound to administer the affairs of the member or former member concerned; “syndicate” means a member of Lloyd’s or a group of members of Lloyd’s underwriting insurance business at Lloyd’s through the agency of a Lloyd’s underwriting agent to which member or group a particular syndicate number is assigned by or under the authority of the Council of Lloyd’s.


document_id: ita-1947
provision_ref: s27
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 27
title: Profits of non‑resident shipowner or charterer
content:
27. —(1) Where a non‑resident person carries on the business of shipowner or charterer, the income on which tax is payable is to be ascertained as provided in this section. (2) Where, for any period, the non‑resident person produces a certificate complying with subsection (3) — ( a ) the profits accruing in Singapore from the business for that period are deemed to be a sum bearing the same ratio to the sums receivable in respect of the carriage of passengers, mail, livestock and goods shipped in Singapore as the total profits for that period bear to the total sum receivable by the non‑resident person in respect of the carriage of passengers, mail, livestock and goods, as shown by the certificate; and ( b ) the depreciation allowable against such profits is similarly deemed to be a sum bearing the same ratio to the sums receivable in respect of the carriage of passengers, mail, livestock and goods shipped in Singapore as the total depreciation for that period bears to the total sum receivable by the non‑resident person in respect of the carriage of passengers, mail, livestock and goods, as shown by the certificate. (3) The certificate referred to in subsection (2) — ( a ) must be one issued by or on behalf of the income tax authority of the place of residence of the non‑resident person; ( b ) is acceptable for the purposes of this section only where the Comptroller is satisfied that the relevant income tax authority — (i) computes and assesses the full profits of the non‑resident person from the non‑resident person’s shipping business on a basis not materially different from the basis of assessment provided by this Act for the assessment of a resident of Singapore carrying on a similar business; and (ii) accepts any certificate issued by the Comptroller for the purpose of computing the profits derived by a resident of Singapore from carrying on the business of a shipowner or charterer and assesses the income of that resident on the basis of and without making any adjustment to the profits or loss or the allowance for depreciation as stated in the certificate issued by the Comptroller and in the same manner as the income of the non‑resident person is assessed under subsection (2); and ( c ) must contain, in respect of the relevant accounting period, the following information: (i) the ratio of the profits or, where there are no profits, of the loss, as computed for the purposes of income tax by that authority, without making any allowance by way of depreciation, to the total sum receivable in respect of the carriage of passengers, mail, livestock and goods; (ii) the ratio of the allowance for depreciation as computed by that authority to that total sum receivable in respect of the carriage of passengers, mail, livestock and goods. (4) Where, for any period, a non‑resident person does not, for any reason, produce a certificate complying with subsection (3), the profits accruing in Singapore are deemed to be a sum equal to 5% of the full sum receivable on account of the carriage of passengers, mail, livestock and goods shipped in Singapore. (5) Where a non‑resident person has been assessed under subsection (4) because a certificate had not been issued at the time of assessment, the non‑resident person is entitled, on the subsequent production of such a certificate to claim at any time within 2 years after the end of such year of assessment, or such further time as the Comptroller may consider reasonable in the circumstances, that the non‑resident person’s liability to tax for the year be determined on the basis provided by subsection (2). (6) Where the Comptroller decides that the call of a ship (within the meaning of section 2(1) of the Merchant Shipping Act 1995) belonging to a particular non‑resident shipowner or charterer at a port in Singapore is casual and that further calls by that ship or others in the same ownership are improbable, this section does not apply to the profits of that ship and no tax is chargeable on them. [2/2016] (7) Despite anything in subsections (1) to (6), if in computing the profits derived by a resident in Singapore from carrying on the business of a shipowner or charterer, the tax authority of a foreign country determines such profits to be an amount which exceeds 5% of the full sum receivable on account of the carriage of passengers, mail, livestock and goods shipped in that foreign country, the Minister may if he or she thinks fit direct that, in computing the profits derived in Singapore by a non‑resident shipowner or charterer who is resident in that foreign country, the Comptroller must determine the amount of such profits in such manner as may be substantially similar to that adopted by the tax authority of that foreign country.


document_id: ita-1947
provision_ref: s28
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 28
title: Profits of non‑resident air transport and cable undertakings
content:
28. Where a non‑resident person carries on the business of air transport or of transmission of messages by cable or by any form of wireless apparatus, the non‑resident person is assessable to tax as if the non‑resident person were a non‑resident shipowner and section 27 applies, with the necessary modifications, to the computation of the gains or profits of the business. 29. [ Repealed by Act 19 of 2013 ] 30. [ Repealed by Act 19 of 2013 ]


document_id: ita-1947
provision_ref: s31
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 31
title: Income arising from settlements
content:
31. —(1) Where under the terms of any settlement and during the life of the settlor any income, or assets representing it, will or may become payable or applicable to or for the benefit of any relative of the settlor and at the commencement of the year of assessment such relative is unmarried and has not attained 21 years of age, such income or assets are deemed to be income of the settlor and not income of any other person. (2) If and so long as the terms of any settlement are such that — ( a ) any person has or may have power, whether immediately or in the future, and whether with or without the consent of any other person, to revoke or otherwise determine the settlement or any provision thereof; and ( b ) in the event of the exercise of the power, the settlor or the wife or husband of the settlor will or may become beneficially entitled to the whole or any part of the property then comprised in the settlement, or of the income arising from the whole or any part of the property so comprised, all income arising under the settlement from the property comprised in the settlement is deemed to be income of the settlor and not income of any other person. (3) Subsection (2) does not apply by reason only that the settlor or the wife or husband of the settlor will or may become beneficially entitled to any income or property relating to the interest of any beneficiary under the settlement in the event that the beneficiary should die before him or her. (4) Where in any year of assessment the settlor or any relative of the settlor or any person under the direct or indirect control of the settlor or of any of the settlor’s relatives, whether by borrowing or otherwise, makes use of any income arising or of any accumulated income which has arisen under a settlement to which he or she is not entitled thereunder, then the amount of such income or accumulated income so made use of is deemed to be income of the settlor for that year of assessment and not income of any other person. (5) Where under the terms of any settlement to which this section applies, any tax is charged on and paid by the person by whom the settlement is made, that person is entitled to recover from any trustee or other person to whom income is paid under the settlement the amount of the tax so paid, and for that purpose to require the Comptroller to furnish a certificate specifying the amount of tax so paid; and any certificate so furnished is conclusive evidence of the facts appearing therein. (6) If any question arises as to the amount of any payment of income or as to any apportionment of income under this section that question must be decided by the Comptroller whose decision is final. (7) This section applies to every settlement wheresoever it was made or entered into and whether it was made or entered into before or after 1 January 1960 and (where there is more than one settlor or more than one person who made the settlement) has effect in relation to each settlor as if he or she were the only settlor. (8) In this section — “child” includes a stepchild, a child who has been de facto adopted by the settlor or by the husband or by the wife of the settlor, whether or not such adoption has been registered in accordance with the provisions of any written law, and a child of whom the settlor has the custody or whom the settlor maintains wholly or partly at his or her own expense; “relative” means any person who is a wife, grandchild, child, brother, sister, uncle, aunt, nephew, niece or cousin of the settlor; “settlement” includes any disposition, trust, covenant, agreement, whether reciprocal or collateral, arrangement or transfer of assets or income, but does not include — ( a ) a settlement which in the Comptroller’s opinion is made for valuable and adequate consideration; ( b ) a settlement resulting from an order of a court; or ( c ) any agreement made by an employer to pay to an employee or to the widow or any relative or dependant of such employee after the employee’s death such remuneration or pension or lump sum as in the Comptroller’s opinion is fair and reasonable; “settlor”, in relation to a settlement, includes any person by whom the settlement was made or entered into, directly or indirectly, and any person who has provided or undertaken to provide funds or credit, directly or indirectly, for the purpose of the settlement, or has made with any other person a reciprocal arrangement for that other person to make or enter into the settlement.


document_id: ita-1947
provision_ref: s32
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 32
title: Valuation of trading stock on discontinuance or transfer of trade or business
content:
32. —(1) In computing for any purpose of this Act the gains or profits of a trade or business which has been discontinued or transferred, any trading stock belonging to the trade or business at the discontinuance or transfer thereof is valued as follows: ( a ) in the case of any such trading stock — (i) which is sold or transferred for valuable consideration to a person who carries on or intends to carry on a trade or business in Singapore; and (ii) the cost whereof may be deducted by the purchaser as an expense in computing for any such purpose the gains or profits of that trade or business, the value thereof is taken to be the amount realised on the sale or the value of the consideration given for the transfer; and ( b ) in the case of any other such trading stock, the value thereof is taken to be the amount which it would have realised if it had been sold in the open market at the discontinuance or transfer of the trade or business. (2) In computing for any purpose of this Act the gains or profits of the purchaser of the trading stock of any trade or business which has been discontinued or transferred, such trading stock is valued as provided in subsection (1). (3) Any question arising under subsection (1) regarding the value attributable to the trading stock belonging to any trade or business which has been discontinued or transferred is to be determined by the Comptroller. (4) In this section, “trading stock”, in relation to any trade or business, means property of any description, whether movable or immovable, being either — ( a ) property such as is sold in the ordinary course of trade or business or would be so sold if it were mature or if its manufacture, preparation or construction were complete; or ( b ) materials such as are used in the manufacture, preparation or construction of any such property as is referred to in paragraph ( a ).


document_id: ita-1947
provision_ref: s32A
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 32A
title: Valuation of cost of trading stock converted from non‑trade or capital asset
content:
32A. —(1) Where, at any time on or after 16 November 2021, any property of a person that is not trading stock becomes wholly or in part trading stock of the person’s trade or business, then, in computing the gains or profits arising from the sale or disposal of such trading stock, the open market value of the property or part of the property as at the date it becomes trading stock is treated as the cost of the trading stock. [27/2021] (2) For the purpose of subsection (1), property is treated as having become trading stock if the property is held for sale or disposal in the ordinary course of a trade or business. [27/2021] (3) To avoid doubt, the reference to trading stock in subsection (1) does not include property the sale or disposal of which results in a gain or loss that is capital in nature. [27/2021] (4) Where property has become wholly or in part trading stock under subsection (1), then the person must, at the time of lodgment of the person’s return of income for the year of assessment relating to the basis period in which the property becomes trading stock, or such later time as the Comptroller may allow, give notice of the occurrence and specify the particulars of the occurrence in such form and manner as the Comptroller may specify. [27/2021] (5) The Minister may by rules made under section 7, exempt any person or class of persons from subsection (4), subject to such conditions as may be specified in the rules. [27/2021] (6) Rules made for the purposes of subsection (5) may be made to take effect from (and including) 16 November 2021. [27/2021] (7) In this section — “open market value”, in relation to any property, means — ( a ) the amount that would be realised if the property had been sold in the open market; or ( b ) where the Comptroller is satisfied by reason of the special nature of the property that it is not practicable to determine the amount mentioned in paragraph ( a ), such other value as appears to the Comptroller to be reasonable in the circumstances; “trading stock”, in relation to a trade or business — ( a ) means property of any description (whether movable or immovable) — (i) that is sold in the ordinary course of trade or business; or (ii) that would be so sold if it were mature or if its manufacture, preparation or construction were complete; but ( b ) does not include any material used in the manufacture, preparation or construction of any property mentioned in paragraph ( a ). [27/2021]


document_id: ita-1947
provision_ref: s33
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 33
title: Comptroller to disregard certain transactions and dispositions
content:
33. —(1) Subsection (2) applies where the Comptroller is satisfied that the purpose or effect of any arrangement is directly or indirectly — ( a ) to alter the incidence of any tax that is payable by or that would otherwise have been payable by any person; ( b ) to relieve any person from any liability to pay tax or to make a return under this Act; or ( c ) to reduce or avoid any liability imposed or which would otherwise have been imposed on any person by this Act. [41/2020] (2) Without affecting any validity that the arrangement may have in any other respect or for any other purpose, the Comptroller must disregard or vary the arrangement and make any adjustment that the Comptroller considers appropriate, including (but not limited to) the computation or recomputation of gains or profits, or the imposition of liability to tax, so as to counteract any tax advantage obtained or obtainable by that person from or under that arrangement. [41/2020] (3) Subsection (1)( c ) includes increasing any qualifying deduction by a transferor company to be transferred to a claimant company under section 37B, in order to reduce or avoid any liability imposed or which would otherwise have been imposed on the claimant company by this Act. [41/2020] (4) Nothing in this section prevents the applicability of subsection (1) to a case, or any action of the Comptroller under subsection (2) in a case, from being questioned in an appeal against an assessment in accordance with Part 18. [41/2020] (5) In this section — “arrangement” means any scheme, trust, grant, covenant, agreement, disposition and transaction and includes all steps by which it is carried into effect; “claimant company” and “transferor company” have the meanings given by section 37B(19); “qualifying deduction” has the meaning given by section 37B(14). [41/2020] (6) This section applies to any arrangement made or entered into before, on or after 7 December 2020, but not one made or entered into before 29 January 1988. [41/2020] (7) This section does not apply to any arrangement carried out for bona fide commercial reasons and had not as one of its main purposes the avoidance or reduction of tax. [41/2020]


document_id: ita-1947
provision_ref: s33A
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 33A
title: Surcharge on adjustments under section 33
content:
33A. —(1) This section applies where, in the year of assessment 2023 or a subsequent year of assessment — ( a ) the Comptroller imposes a liability to tax or an additional amount of tax on a person for that year of assessment under section 33; ( b ) the Comptroller recomputes any gain, profit or loss of, any capital allowance allowed to, or any deduction for a donation made by, a person for that year of assessment under section 33 which results in the imposition of a liability to tax or an additional amount of tax on that person for any year of assessment; or ( c ) as a result of an adjustment under section 33, any qualifying deduction that has been transferred under section 37B by a transferor company to a claimant company is reduced or disregarded, and the Comptroller makes an assessment on the claimant company for an amount of tax or an additional amount of tax. [41/2020] (2) In a case mentioned in subsection (1)( a ) or ( b ), a surcharge equal to 50% of the amount of tax or the additional amount of tax is imposed on the person, and is recoverable by the Comptroller from the person as a debt due to the Government. [41/2020] (3) In a case mentioned in subsection (1)( c ), a surcharge equal to 50% of the amount of tax or the additional amount of tax assessed on the claimant company is imposed on the transferor company, and is recoverable by the Comptroller from the transferor company as a debt due to the Government. [41/2020] (4) Despite any objection under section 76 to or an appeal lodged under Part 18 against an adjustment made under section 33 or any assessment, the surcharge must be paid — ( a ) within one month after the date a written notice of the surcharge is served in accordance with section 8(1) on the person to whom the surcharge is imposed; and ( b ) in the manner stated in the notice. [41/2020] (5) The Comptroller may, in the Comptroller’s discretion, and subject to any term and condition (including the imposition of interest on the surcharge) as the Comptroller may impose, extend the time within which payment is to be made. [41/2020] (6) Sections 86(1) to (6), 87(1) and (2), 89, 90 and 91 apply to the collection and recovery of a surcharge and any interest imposed under subsection (5), as they apply to the collection and recovery of tax. [41/2020] (7) The Comptroller may, for good cause, remit wholly or in part any surcharge or interest payable under this section. [41/2020] (8) If, upon an objection under section 76 to or an appeal lodged under Part 18, an assessment made pursuant to any adjustment made under section 33 is varied or annulled, then the surcharge is correspondingly increased, reduced or annulled (as the case may be), and — ( a ) if the surcharge is increased, subsection (2) or (3) (as the case may be) and subsections (4), (5), (6) and (7) apply to the increased amount of the surcharge as they apply to the surcharge; or ( b ) if the surcharge is reduced or annulled and it has already been paid to the Comptroller, the amount of the reduction or the entire amount (including any interest paid on the amount) must be refunded. [41/2020] (9) In this section, “claimant company”, “qualifying deduction” and “transferor company” have the meanings given by section 33(5). [41/2020]


document_id: ita-1947
provision_ref: s34
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34
title: Decision of Comptroller no bar to appeal
content:
34. Nothing in section 32 prevents the decision of the Comptroller in the exercise of any discretion given to him or her by that section from being questioned in an appeal against an assessment in accordance with Part 18. [41/2020]


document_id: ita-1947
provision_ref: s34A
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34A
title:
Adjustment on change of basis of computing profits of financial instruments resulting from FRS 39 or SFRS for Small Entities

content:
34A. —(1) Despite the provisions of this Act, the amount of any profit or loss (as the case may be) or expense to be brought into account for the basis period for any year of assessment in respect of any financial instrument of a qualifying person for the purposes of sections 10, 14, 14G and 37 is that which, in accordance with FRS 39 or SFRS for Small Entities (as the case may be), is recognised in determining any profit or loss (as the case may be) or expense in respect of that financial instrument for that year of assessment. [39/2017] (2) Despite subsection (1), the profit or loss or expense in respect of the financial instrument referred to in the following paragraphs is, for the purposes of sections 10, 14, 14G and 37, to be computed as follows: ( a ) where a qualifying person to whom section 10(12)( b ) applies derives interest from a negotiable certificate of deposit or derives a gain or profit from the sale thereof, the qualifying person’s income therefrom is treated in the manner set out in section 10(12); ( b ) where a qualifying person derives interest from debt securities or loans, and the interest is chargeable to tax under section 10(1)( d ), such interest is to be computed based on the contractual interest rate and not the effective interest rate; [Act 33 of 2022 wef 04/11/2022] ( c ) any amount of profit or expense in respect of a loan for which no interest is payable is disregarded; ( d ) where the creditor and debtor of a loan agreement are not dealing with each other at arm’s length, only the interest income or the interest expense based on the contractual interest rate is chargeable to tax or allowed as a deduction, as the case may be; ( e ) in a case where section 14(1)( a ) applies, only the interest expense incurred based on the contractual interest rate is allowed as a deduction under section 14(1)( a ); ( f ) any amount of profit or loss in respect of a hedging instrument where the underlying asset or liability is employed or intended to be employed as capital is disregarded; ( g ) where a bank or qualifying finance company within the meaning of section 14G is unable to make provision for the amount of impairment losses in respect of a group of financial assets in accordance with FRS 39, but is required to make such provision by the Monetary Authority of Singapore, section 14G applies for a period of 5 years, or such further period as the Minister may allow, beginning from the year of assessment relating to the basis period in which the bank or qualifying finance company is first required to prepare financial accounts in respect of its trade or business in accordance with FRS 39; ( h ) a gain from discounts or premiums on debt securities, being a gain chargeable to tax under section 10(1)( d ), is deemed — (i) to accrue only on the maturity or redemption of the debt securities; and (ii) to be equal to the difference between the amount received on the maturity or redemption of the debt securities and the amount for which the debt securities were first issued; ( i ) in a case where a qualifying person issues debt securities at a discount or redeems issued debt securities at a premium, and section 14(1)( a ) applies in respect of the outgoing represented by such discount or premium, such outgoing is deemed to be incurred and deductible only when it is paid on the maturity or redemption of the debt securities and — (i) in the case of debt securities issued in the basis period relating to the year of assessment 2008 or subsequent years of assessment, to be equal to the difference between the amount paid on the maturity or redemption of the debt securities and the amount for which the debt securities were first issued; or (ii) in the case of debt securities issued before the basis period relating to the year of assessment 2008, to be equal to such part of the difference referred to in sub‑paragraph (i) that would be attributable to the year of assessment 2008 and subsequent years of assessment; ( j ) in a case where — (i) a qualifying person issues debt securities at a discount or redeems issued debt securities at a premium; (ii) the debt securities were issued with an embedded derivative to acquire shares or units in the qualifying person; and (iii) the outgoing represented by such discount or premium is deductible under section 14(1), such part of the outgoing that is attributable to the embedded derivative is not deductible. (3) A person who is required to prepare or maintain financial accounts in accordance with FRS 39 may, subject to such conditions as the Comptroller may specify, elect in accordance with subsection (4) not to be subject to this section; and if the person so elects, the person is not treated as a qualifying person from the year of assessment relating to the basis period during which the person is first required to prepare financial accounts in accordance with FRS 39. (3A) A person who prepares or maintains financial accounts in accordance with SFRS for Small Entities may, subject to such conditions as the Comptroller may specify, elect in accordance with subsection (4A) not to be subject to this section; and if the person so elects, the person is not treated as a qualifying person from the year of assessment relating to the basis period during which the person first prepares financial accounts in accordance with SFRS for Small Entities. (3B) A person is not entitled to make an election under subsection (3) if the person is already subject to this section because the person did not make an election in accordance with subsection (4A), or the person had revoked under subsection (5) the person’s election made in accordance with subsection (4A). (3C) A person is not entitled to make an election under subsection (3A) if the person is already subject to this section because the person did not make an election in accordance with subsection (4), or the person had revoked under subsection (5) the person’s election made in accordance with subsection (4). (4) The election referred to in subsection (3) must be made by the person by written notice to the Comptroller — ( a ) at the time of lodgment of the return of income for the year of assessment referred to in subsection (3); or ( b ) within such further time as the Comptroller may allow. (4A) The election referred to in subsection (3A) must be made by the person by written notice to the Comptroller — ( a ) at the time of lodgment of the return of income for the year of assessment referred to in that subsection; or ( b ) within such further time as the Comptroller may allow. (5) A person who has made an election under subsection (3) or (3A) may at any time revoke the election by written notice to the Comptroller; and if the person so revokes, the person is treated as a qualifying person from the year of assessment relating to the basis period during which the revocation is made or such year of assessment as the Comptroller may approve. (6) The revocation under subsection (5) is irrevocable. (7) A person who is not required to prepare or maintain financial accounts in accordance with FRS 39 or SFRS for Small Entities may apply to the Comptroller in writing for approval to be subject to this section and, if the Comptroller approves the application, that person is treated as a qualifying person from the year of assessment relating to the basis period during which the approval is granted or such later year of assessment as the Comptroller may approve. (8) The provisions of this section pertaining to FRS 39 have effect for any basis period beginning on or after 1 January 2005; and the provisions of this section pertaining to SFRS for Small Entities have effect for any basis period beginning on or after 1 January 2011. (9) For the purposes of this section, the Minister may make regulations — ( a ) to provide for such transitional, supplementary and consequential matters as the Minister may consider necessary or expedient; and ( b ) generally to give effect to or for carrying out the purposes of this section. (10) In this section — “contractual interest rate”, in relation to any financial instrument, means the interest rate specified in the financial instrument; “debt securities” has the meaning given by section 43H(4); “FRS 39” means the financial reporting standard known as Financial Reporting Standard 39 (Financial Instruments: Recognition and Measurement) that is treated as made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time; [Act 36 of 2022 wef 01/04/2023] “Monetary Authority of Singapore” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act 1970; “qualifying person”, in relation to any year of assessment, means — ( a ) a person who is required to prepare or maintain financial accounts in accordance with FRS 39 and who has not made an election under subsection (3) for that year of assessment; ( b ) a person who prepares or maintains financial accounts in accordance with SFRS for Small Entities and who has not made an election under subsection (3A) for that year of assessment; or ( c ) a person who is treated as a qualifying person under subsection (5) or (7) for that year of assessment, as the case may be, but excludes a person who is treated under section 34AA(6) as a qualifying person for that year of assessment for the purposes of section 34AA; “SFRS for Small Entities” means the financial reporting standard known as Singapore Financial Reporting Standard for Small Entities made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time. [45/2018] [Act 36 of 2022 wef 01/04/2023] (11) Any term used in this section and not defined in this section but defined in FRS 39 or SFRS for Small Entities (as the case may be) has the same meaning as in FRS 39 or SFRS for Small Entities (as the case may be). (12) This section does not apply to any profit, loss or expense in respect of any financial instrument of an insurer as defined in section 34AAA(1), to be brought into account for the basis period for a year of assessment, being a basis period that begins on or after 1 January 2023, or such earlier basis period as may be approved by the Comptroller in a particular case. [Act 33 of 2022 wef 04/11/2022]


document_id: ita-1947
provision_ref: s34AA
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34AA
title:
Adjustment on change of basis of computing profits of financial instruments resulting from FRS 109 or SFRS(I) 9

content:
34AA. —(1) Despite the provisions of this Act but subject to section 34G(3), (4) and (5), the amount of any profit, loss or expense to be brought into account for the basis period for any year of assessment in respect of any financial instrument of a qualifying person for the purposes of sections 10, 14, 14G and 37, respectively, is that which, in accordance with FRS 109 or SFRS(I) 9 (as the case may be), is recognised in determining any profit, loss or expense in respect of that financial instrument for that year of assessment. [39/2017; 45/2018] (2) To avoid doubt, subsection (1) does not apply to anything recognised in accordance with FRS 109 or SFRS(I) 9 (as the case may be), that is capital in nature. [39/2017; 45/2018] (3) Despite subsection (1), for the purposes of sections 10, 14, 14G and 37, the profit, loss or expense in respect of a financial instrument mentioned in each of the following paragraphs must be dealt with in accordance with that paragraph: ( a ) where a qualifying person to whom section 10(12)( b ) applies derives interest from a negotiable certificate of deposit or derives a gain or profit from the sale of that certificate, the person’s income from that certificate or sale must be treated in the manner set out in section 10(12); ( b ) where a qualifying person derives interest from debt securities or loans, the interest that is chargeable to tax under section 10(1)( d ) is the amount computed at the contractual interest rate and not at the effective interest rate; [Act 33 of 2022 wef 04/11/2022] ( c ) any amount of profit or expense in respect of a loan for which no interest is payable must be disregarded; ( d ) where the creditor and debtor of a loan did not deal with each other at arm’s length, the interest income chargeable to tax, and the interest expense allowable as a deduction, are the amounts of such income and expense that are computed at the contractual interest rate and not at the effective interest rate; ( e ) in a case where section 14(1)( a ) applies, only interest expense incurred in respect of the money borrowed and computed at the contractual interest rate is allowed as a deduction under that provision; ( f ) any amount of profit or loss in respect of a hedging instrument acquired under a bona fide commercial arrangement for the sole purpose of hedging against any risk associated with the underlying asset or liability must be disregarded, if the underlying asset or liability is employed or intended to be employed as capital; ( g ) any amount of expected credit losses of a financial instrument that is not credit‑impaired, being losses that are recognised in accordance with FRS 109 or SFRS(I) 9 (as the case may be) in determining the profit or loss of such instrument, must be disregarded; ( h ) despite paragraph ( g ), section 14G applies in relation to a provision made by a qualifying person that is a bank or qualifying finance company for an expected credit loss arising from its loans or investments in securities, or both, where the loans or securities are not credit impaired; [Act 25 of 2025 wef 08/12/2025] ( i ) where an equity instrument on revenue account of a qualifying person that is measured at fair value through other comprehensive income is disposed of, an amount prescribed as the gain or loss to the qualifying person on such disposal, is chargeable to tax, or is to be allowed as a deduction; ( j ) a gain from discounts or premiums on debt securities, being a gain chargeable to tax under section 10(1)( d ) — (i) is treated as accruing only on the maturity or redemption of the debt securities; and (ii) is treated as equal to the difference between the amount received on the maturity or redemption of the debt securities and the amount for which the debt securities were first issued; ( k ) in a case where a qualifying person issues debt securities at a discount or redeems issued debt securities at a premium, and section 14(1)( a ) applies in respect of the outgoing represented by such discount or premium, such outgoing is treated to be incurred and deductible only when it is paid on the maturity or redemption of the debt securities and — (i) for debt securities issued in the basis period relating to the year of assessment 2008 or subsequent years of assessment, is treated as equal to the difference between the amount paid on the maturity or redemption of the debt securities and the amount for which the debt securities were first issued; or (ii) for debt securities issued before the basis period relating to the year of assessment 2008, is treated as equal to the part of the difference in sub‑paragraph (i) that would be attributable to the year of assessment 2008 and subsequent years of assessment; ( l ) in a case where — (i) a qualifying person issues debt securities at a discount or redeems issued debt securities at a premium; (ii) the debt securities were issued with an embedded derivative to acquire shares or units in the qualifying person; and (iii) the outgoing represented by such discount or premium is deductible under section 14(1), such part of the outgoing that is attributable to the embedded derivative is not deductible; ( m ) where a financial instrument on revenue account of a qualifying person (being a financial liability measured at fair value through profit or loss) matures or is sold, bought back or redeemed, any gain or loss to the qualifying person that is realised on such maturity or from such sale, buy back or redemption (being a gain or loss that is recognised in other comprehensive income in accordance with FRS 109 or SFRS(I) 9 (as the case may be)) is chargeable to tax, or is to be allowed as a deduction. [39/2017; 45/2018] (4) To avoid doubt, subsection (3)( d ) does not affect the operation of section 34D. [39/2017] (5) In a case where — ( a ) a loan on revenue account is transferred by a qualifying person (called in this subsection the transferor) to another person (called in this subsection the transferee); [Act 30 of 2023 wef 30/10/2023] ( b ) the transfer is not pursuant to a qualifying amalgamation within the meaning of section 34C(2) in relation to which an election is made under section 34C(4); ( c ) a provision for an expected credit loss arising from that loan that is credit‑impaired, being a loss that is recognised in accordance with FRS 109 or SFRS(I) 9 (as the case may be) in determining the profit or loss of such loan, is also transferred by the transferor to the transferee; and ( d ) a deduction of an amount in respect of the provision mentioned in paragraph ( c ) was previously allowed under section 14 (read with this section or section 34A) to the transferor, then, despite any provision in this Act — ( e ) in a case where both the transferor and the transferee are on the date of the transfer in the business of lending money, the deduction previously allowed to the transferor is treated, for the purposes of section 14, as having been allowed to the transferee under that section; and ( f ) in any other case, the provision for the expected credit loss mentioned in paragraph ( c ) that is transferred by the transferor and allowed a deduction under paragraph ( d ) is treated as a trading receipt of the transferor for the basis period in which the date of transfer falls. [39/2017; 45/2018] [Act 30 of 2023 wef 30/10/2023] (6) A person who is not a qualifying person under paragraph ( a ) or ( b ) of the definition of that term in subsection (15), may apply to the Comptroller for approval to be a qualifying person; and if the Comptroller approves the application, that person is a qualifying person starting from the year of assessment of the basis period in which the approval is granted or such later year of assessment as the Comptroller may approve. [39/2017] (7) If — ( a ) any gain, loss or expense in respect of a financial instrument of a qualifying person to which subsection (1) applies is recognised under FRS 109 or SFRS(I) 9 (as the case may be) on a certain date; ( b ) it is not possible to determine, on the date the Comptroller makes an assessment of the amount of chargeable income of that person for the year of assessment of the basis period in which the date mentioned in paragraph ( a ) falls, whether that gain, loss or expense is capital or revenue in nature; ( c ) because of this, the gain was not charged with tax or a deduction was allowed for that loss or expense, as the case may be; and ( d ) the Comptroller later discovers (called the discovery time) that the gain ought to have been charged with tax as it is revenue in nature, or a deduction ought not to have been allowed for the loss or expense as it is capital in nature, as the case may be, then, and despite anything in this Act but subject to subsection (9), the amount of the gain, loss or expense, together with the additional amount mentioned in subsection (8), is treated as the person’s income for the year of assessment within which the discovery time falls. [39/2017; 45/2018] (8) The additional amount in subsection (7) is the amount of any other gain, loss or expense in respect of the same financial instrument — ( a ) that was not charged with tax, or for which a deduction was allowed, for one or more past years of assessment, for the same reason as that in subsection (7)( b ); and ( b ) that is ascertained in accordance with the regulations made under subsection (13). [39/2017] (9) For any qualifying person, no assessment may be made in respect of the income mentioned in subsection (7) more than 4 years immediately after the end of the year of assessment of the basis period in which the financial instrument is disposed of by the qualifying person. [39/2017] (10) If — ( a ) any gain, loss or expense in respect of a financial instrument of a qualifying person to which subsection (1) applies is recognised under FRS 109 or SFRS(I) 9 (as the case may be) on a certain date; ( b ) it is not possible to determine, on the date the Comptroller makes an assessment of the amount of chargeable income of that person for the year of assessment of the basis period in which the date mentioned in paragraph ( a ) falls, whether that gain, loss or expense is capital or revenue in nature; ( c ) because of this, the gain was charged with tax or a deduction was not allowed for that loss or expense, as the case may be; and ( d ) the Comptroller later discovers (called the discovery time), with or without a claim made by the qualifying person, that the gain ought not to have been charged with tax as it is capital in nature, or a deduction ought to have been allowed for the loss or expense as it is revenue in nature, as the case may be, then, and despite anything in this Act but subject to subsection (12), the amount of the gain, loss or expense, together with the additional amount mentioned in subsection (11), is to be allowed as a deduction against the income of the person for the year of assessment within which the discovery time falls. [39/2017; 45/2018] (11) The additional amount in subsection (10) is the amount of any other gain, loss or expense in respect of the same financial instrument — ( a ) that was charged with tax, or for which a deduction was not made, for one or more past years of assessment, for the same reason as that in subsection (10)( b ); and ( b ) that is ascertained in accordance with the regulations made under subsection (13). [39/2017] (12) For any qualifying person, no claim mentioned in subsection (10)( d ) may be made more than 4 years immediately after the end of the year of assessment of the basis period in which the financial instrument is disposed of by the qualifying person. [39/2017] (13) For the purposes of this section, the Minister may make regulations to give effect to this section, including — ( a ) [ Deleted by Act 45 of 2018 ] ( b ) providing for the computation of the additional amounts mentioned in subsections (8) and (11); and ( c ) providing for any transitional, supplementary or consequential matter, 


document_id: ita-1947
provision_ref: s34AAA
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34AAA
title: Change of basis for computing profits from financial instruments for insurers
content:
34AAA. —(1) Despite the provisions of this Act but subject to section 34G(3), (4) and (5), the amount of any profit, loss or expense in respect of any financial instrument of a company licensed under the Insurance Act 1966 to carry on insurance business in Singapore (called in this section an insurer), to be brought into account for the basis period for a year of assessment (being a basis period beginning on or after 1 January 2023, or such earlier basis period as may be approved by the Comptroller in a particular case) for the purposes of sections 10, 14 and 37, is that which — ( a ) is recognised and valued in accordance with the Insurance Act regulations; and ( b ) is reflected in the statement of profit and loss that is part of the insurer’s MAS return for that basis period. (2) Subsection (1) does not apply to anything recognised and valued in accordance with the Insurance Act regulations that is capital in nature. (3) Without limiting subsection (1), that subsection applies to any financial instrument of — ( a ) the shareholders’ fund established in Singapore of an insurer; or ( b ) the surplus account of a participating fund of an insurer that is a life insurer. (4) Subsection (1) does not apply to any financial instrument of a participating fund (other than the surplus account of the participating fund) of an insurer that is a life insurer. (5) Despite subsection (1), for the purposes of sections 10, 14 and 37, the profit, loss or expense of an insurer in respect of a financial instrument mentioned in each of the following paragraphs must be dealt with or computed (as the case may be) in accordance with that paragraph: ( a ) where the insurer derives interest from debt securities or loans, the interest that is chargeable to tax under section 10(1)( d ) is the amount computed at the contractual interest rate and not at the effective interest rate; ( b ) any amount of profit or expense in respect of a loan for which no interest is payable must be disregarded; ( c ) where the creditor and debtor of a loan did not deal with each other at arm’s length, the interest income chargeable to tax, and the interest expense allowable as a deduction, are the amounts of such income and expense that are computed at the contractual interest rate and not at the effective interest rate; ( d ) where the insurer incurs interest expense on loans or debt securities to which section 14(1)( a ) would otherwise apply, only such part of the interest expense that is incurred in respect of the moneys borrowed and computed at the contractual interest rate is allowed as a deduction under that provision; ( e ) any amount of profit or loss in respect of a hedging instrument acquired under a bona fide commercial arrangement for the sole purpose of hedging against any risk associated with the underlying asset or liability must be disregarded, if the underlying asset or liability is employed or intended to be employed as capital; ( f ) where a loan (whether on revenue or capital account) is not reflected as a credit-impaired financial asset in the insurer’s audited financial statements for the accounting period the last day of which falls within the basis period concerned, any amount of impairment losses in respect of that loan, being losses that are recognised and valued in accordance with the Insurance Act regulations and reflected in the statement of profit and loss that is part of an MAS return, must be disregarded; ( g ) where a loan (being one on capital account) is reflected as a credit-impaired financial asset in the insurer’s audited financial statements for the accounting period the last day of which falls within the basis period concerned, any amount of impairment losses in respect of that loan, being losses that are recognised and valued in accordance with the Insurance Act regulations and reflected in the statement of profit and loss that is part of an MAS return, must be disregarded; ( h ) where a loan (whether on revenue or capital account) and interest receivable on that loan are not reflected as a credit‑impaired financial asset in the insurer’s audited financial statements for the accounting period the last day of which falls within the basis period concerned, any amount of impairment losses in respect of the interest receivable on that loan, being losses that are recognised and valued in accordance with the Insurance Act regulations and reflected in the statement of profit and loss that is part of an MAS return, must be disregarded; ( i ) where a receivable (other than interest receivable on a loan) is not reflected as a credit-impaired financial asset in the insurer’s audited financial statements for the accounting period the last day of which falls within the basis period concerned, any amount of impairment losses in respect of that receivable, being losses that are recognised and valued in accordance with the Insurance Act regulations and reflected in the statement of profit and loss that is part of an MAS return, must be disregarded; ( j ) a gain from discounts or premiums on debt securities, being a gain chargeable to tax under section 10(1)( d ) — (i) is treated as accruing only on the maturity or redemption of the debt securities; and (ii) is treated as equal to the difference between the amount received on the maturity or redemption of the debt securities and the amount for which the debt securities were first issued; ( k ) in a case where the insurer issues debt securities at a discount or redeems issued debt securities at a premium, and section 14(1)( a ) applies in respect of the outgoing represented by such discount or premium, such outgoing is treated — (i) to be incurred and deductible only when it is paid on the maturity or redemption of the debt securities; and (ii) as equal to the difference between the amount paid on the maturity or redemption of the debt securities and the amount for which the debt securities were first issued; ( l ) in a case where — (i) the insurer issues debt securities at a discount or redeems issued debt securities at a premium; (ii) the debt securities were issued with an embedded derivative to acquire shares or units in the insurer; and (iii) the outgoing represented by such discount or premium is deductible under section 14(1), such part of the outgoing that is attributable to the embedded derivative, must be disregarded. (6) To avoid doubt, subsection (5)( c ) does not affect the operation of section 34D. (6A) In a case where — ( a ) a loan on revenue account is transferred by an insurer (called in this subsection the transferor) to another person (called in this subsection the transferee); ( b ) the transfer is not pursuant to a transfer of businesses by the transferor to the transferee in relation to which section 34CA applies; ( c ) a provision for an impairment loss arising from that loan, being a loss that is recognised and valued in accordance with the Insurance Act regulations in determining the profit or loss of such loan and reflected in the transferor’s statement of profit and loss that is part of an MAS return, is also transferred by the transferor to the transferee; and ( d ) a deduction of an amount in respect of the provision mentioned in paragraph ( c ) was previously allowed under section 14 (read with this section) to the transferor, then, despite any provision of this Act — ( e ) in a case where both the transferor and transferee are on the date of the transfer in the business of lending money, the deduction previously allowed to the transferor is treated, for the purposes of section 14, as having been allowed to the transferee under that section; and ( f ) in any other case, the provision for the impairment loss mentioned in paragraph ( c ) that is transferred by the transferor and allowed a deduction under paragraph ( d ) is treated as a trading receipt of the transferor for the basis period in which the date of transfer falls. [Act 30 of 2023 wef 30/10/2023] (7) If — ( a ) any gain, loss or expense in respect of a financial instrument of an insurer was (by reason of subsection (1)) that which was recognised and valued in accordance with the Insurance Act regulations and reflected in the statement of profit and loss that was part of an MAS return on a certain date; ( b ) it was not possible to determine, on the date the Comptroller made an assessment of the amount of chargeable income of that insurer for the year of assessment of the basis period in which the date mentioned in paragraph ( a ) fell, whether that gain, loss or expense was capital or revenue in nature; ( c ) because of this, the gain was not charged with tax or a deduction was allowed for that loss or expense, as the case may be; and ( d ) the Comptroller later discovers (called in this subsection the discovery time) that the gain ought to have been charged with tax as it was revenue in nature, or a deduction ought not to have been allowed for the loss or expense as it was capital in nature, as the case may be, then, and despite anything in this Act but subject to subsection (9), the amount of the gain, loss or expense, together with the additional amount mentioned in subsection (8), is treated as the insurer’s income for the year of assessment within which the discovery time falls. (8) The additional amount in subsection (7) is the amount of any other gain, loss or expense in respect of the same financial instrument — ( a ) that was not charged with tax, or for which a deduction was allowed, for one or more past years of assessment, for the same reason as that in subsection (7)( b ); and ( b ) that is ascertained in accordance with the regulations made under subsection (13). (9) No assessment may be made in respect of the income mentioned in subsection (7) more than 4 years immediately after the end of the year of assessment of the basis period in which the financial instrument is disposed of by the insurer. (10) If — ( a ) any gain, loss or expense in respect of a financial instrument of an insurer was (by reason of subsection (1)) that which was recognised and valued in accordance with the Insurance Act regulations and reflected in the statement of profit and loss that was part of an MAS return on a certain date; ( b ) it was not possible to determine, on the date the Comptroller made an assessment of the amount of chargeable income of that insurer for the year of assessment of the basis period in which the date mentioned in paragraph ( a ) fell, whether that gain, loss or expense was capital or revenue in nature; ( c ) because of this, the gain was charged with tax or a deduction was not allowed for that loss or expense, as the case may be; and ( d ) the Comptroller later discovers (called in this subsection the discovery time), with or without a claim made by the insurer, that the gain ought not to have been charged with tax as it was capital in nature, or a deduction ought to have been allowed for the loss or expense as it was revenue in nature, as the case may be, then, and despite anything in this Act but subject to subsection (12), the amount of the gain, loss or expense, together with the additional amount mentioned in subsection (11), is to be allowed as a deduction against the insurer’s income for the year of assessment within which the discovery time falls. (11) The additional amount in subsection (10) is the amount of any other gain, loss or expense in respect of the same financial instrument — ( a ) that was charged with tax, or for which a deduction was not made, for one or more past years of assessment, for the same reason as that in subsection (10)( b ); and ( b ) that is ascertained in accordance with the regulations made under subsection (13). (12) No claim mentioned in subsection (10)( d ) may be made more than 4 years immediately after the end of the year of assessment of the basis period in which the financial instrument is disposed of by the insurer. (13) For the purposes of this section, the Minister may make regulations to giv


document_id: ita-1947
provision_ref: s34AB
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34AB
title: Chargeability of profit or loss from foreign exchange differences
content:
34AB. —(1) This section applies where a person is a party to a transaction that is or is to be settled in a currency that is different from the functional currency in which the person’s financial statements are kept. [45/2018] (2) Despite the provisions of this Act, for the purpose of sections 10 and 14, any change in the value of any receivable or payable from the transaction that is reflected in the person’s financial statements, being a change arising from movements in the rates of the 2 currencies, is treated as — ( a ) a gain accruing to the person; or ( b ) a deductible expense, as the case may be, in the basis period in which the change is recognised as a gain or loss (as the case may be) in the profit and loss account that is part of those financial statements. [45/2018] (3) To avoid doubt, subsection (2) — ( a ) applies whether or not the gain or loss is realised; and ( b ) does not apply to a transaction the gain or loss from which is capital in nature. [45/2018] (4) Subsection (2) does not apply to a transaction relating to a financial instrument to which section 34A, 34AA or 34AAA applies. [45/2018] [Act 33 of 2022 wef 04/11/2022] (5) This section does not apply to a person who made an election to the Comptroller, at the time of lodgment of the person’s return of income for the year of assessment 2004, for any of the person’s recognised gains or losses mentioned in subsection (2) that were unrealised, not to be treated as the person’s gain or loss for that year of assessment and every subsequent year of assessment, for the purposes of this Act. [45/2018] (6) However, the person mentioned in subsection (5) may in the person’s return of income for any year of assessment, make an irrevocable election to the Comptroller to be subject to this section, and, if the election is approved by the Comptroller, this section applies to that person for that year of assessment and every subsequent year of assessment. [45/2018]


document_id: ita-1947
provision_ref: s34B
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34B
title: Islamic financing arrangements
content:
34B. —(1) This section applies to any prescribed Islamic financing arrangement entered into on or after 17 February 2006 between any person and a financial institution. (2) Subject to such exceptions, adaptations and modifications as may be prescribed, sections 10, 12, 13, 14, 15 and 45 and regulations made under section 43J apply in relation to any prescribed Islamic financing arrangement as if a reference in any of those provisions to interest accrued, derived, received or incurred in relation to any loan, deposit or mortgage were a reference to the effective return of the arrangement. (3) Where under a prescribed Islamic financing arrangement, an asset is sold by one party to the arrangement to the other party, the effective return of the arrangement must be excluded in determining for the purposes of this Act the consideration for the sale and purchase of the asset. (4) Subsection (3) does not affect the operation of any provision of this Act which provides that the consideration for a sale or purchase is to be taken for any purpose to be an amount other than the actual consideration. (5) For the purposes of this section, the Minister may make regulations — ( a ) to prescribe anything that is required or authorised to be prescribed under this section; ( b ) to provide for such transitional, supplementary and consequential matters as the Minister may consider necessary or expedient; and ( c ) generally to give effect to or for carrying out the purposes of this section. (6) In this section — “effective return”, in relation to a prescribed Islamic financing arrangement, means the prescribed return in lieu of interest that has or is accrued, derived, received or incurred under the arrangement; “financial institution” means — ( a ) any institution in Singapore that is licensed or approved by the Monetary Authority of Singapore, or exempted from such licensing or approval, under any written law administered by the Monetary Authority of Singapore; or ( b ) any institution outside Singapore that is licensed or approved, or exempted from such licensing or approval, under any written law administered by its financial supervisory authority for the carrying on of financial activities; “Islamic financing arrangement” means a financing arrangement which is — ( a ) endorsed by any Shari’ah council or body, or by any committee formed for the purpose of providing guidance on compliance with Shari’ah law; and ( b ) permitted under any written law in Singapore or elsewhere.


document_id: ita-1947
provision_ref: s34C
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34C
title: Amalgamation of companies
content:
34C. —(1) This section only applies to a qualifying amalgamation. Interpretation (2) In this section — “first 2 years of assessment”, in relation to an amalgamating company, means the year of assessment relating to the basis period during which the company is incorporated and the year of assessment immediately following that year of assessment; “FRS 38”, “FRS 103”, “SFRS(I) 1‑38” and “SFRS(I) 3” mean the financial reporting standards known respectively as — ( a ) Financial Reporting Standard 38 (Intangible Assets); ( b ) Financial Reporting Standard 103 (Business Combinations); ( c ) Singapore Financial Reporting Standard (International) 1‑38 (Intangible Assets); and ( d ) Singapore Financial Reporting Standard (International) 3 (Business Combinations), that are made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time; [Act 36 of 2022 wef 01/04/2023] “qualifying amalgamation” means — ( a ) any amalgamation of companies where the notice of amalgamation under section 215F of the Companies Act 1967 or a certificate of approval under section 14A of the Banking Act 1970 is issued on or after 22 January 2009; and ( b ) such other amalgamation of companies as the Minister, or such person as the Minister may appoint, may approve. [32/2019] (3) For the purpose of this section, the date of amalgamation of companies is — ( a ) the date shown on the notice of amalgamation under section 215F of the Companies Act 1967; ( b ) the date of lodgment mentioned in section 14A(4) of the Banking Act 1970; or ( c ) such date as specified in the letter of approval issued under paragraph ( b ) of the definition of “qualifying amalgamation” in subsection (2), as the case may be. Election for section to apply (4) An amalgamated company in a qualifying amalgamation must, within 90 days from the date of amalgamation or such further period as the Comptroller may allow, elect for this section to apply to it and all the amalgamating companies in the qualifying amalgamation. (5) An election under subsection (4) must be made by an amalgamated company by written notice to the Comptroller and is irrevocable. (6) Upon such election, the trades and businesses carried on in Singapore of all the amalgamating companies are treated as carried on in Singapore by the amalgamated company beginning from the date of amalgamation and — ( a ) any property on revenue account of each amalgamating company is, subject to subsection (14), treated as property on revenue account of the amalgamated company; and ( b ) any property on capital account of each amalgamating company is, subject to subsection (16), treated as property on capital account of the amalgamated company, and the amalgamated company is treated as having acquired the property on the date on which the amalgamating company acquired it for an amount that was incurred by the amalgamating company in respect of that property. Effect of cancellation of shares (7) Where an amalgamating company (called the firstmentioned company) holds shares in another amalgamating company (called the second‑mentioned company), and the shares of the second‑mentioned company are cancelled on the amalgamation, the following provisions apply: ( a ) the firstmentioned company is treated as having disposed of the shares in the second‑mentioned company immediately before the amalgamation for an amount equal to the cost of the shares to the firstmentioned company; ( b ) if — (i) the firstmentioned company has borrowed money to acquire shares in the second‑mentioned company; and (ii) the liability arising from the money borrowed referred to in sub‑paragraph (i) is transferred to and becomes the liability of the amalgamated company, no deduction may be given for any interest or other borrowing costs incurred by the amalgamated company on or after the date of amalgamation on such liability. Transfer of property (8) Where there is a transfer of property from any amalgamating company to the amalgamated company on the date of amalgamation in respect of which allowances or writing‑down allowances have been made to the amalgamating company under sections 16 to 21, the amalgamating company and the amalgamated company are, subject to section 24(4), deemed to have made an election under section 24(3), and section 24(3)( a ) to ( e ) applies, with the necessary modifications, whether or not the amalgamated company is a company over which the amalgamating company has control, or the amalgamating company is a company over which the amalgamated company has control, or both the amalgamating company and amalgamated company are companies under the control of a common person. (8A) Where there is a transfer of a building or structure from any amalgamating company to the amalgamated company on the date of amalgamation for which an allowance has been made to the amalgamating company under section 18C, the annual allowances provided under that section continue to be available to the amalgamated company as if it had incurred the qualifying capital expenditure that was incurred in carrying out the approved construction or approved renovation (as the case may be) referred to in that section. (8B) Subsection (8A) does not apply unless the building or structure is used before the transfer by the amalgamating company and after the transfer by the amalgamated company, in the production of income chargeable under the provisions of this Act. (9) In the application of section 24(3)( a ) to ( e ) under subsection (8) — ( a ) a reference in that provision to a buyer is a reference to the amalgamated company; and ( b ) a reference in that provision to a seller is a reference to the amalgamating company. (10) Where — ( a ) there is a transfer of property, being intellectual property rights in respect of which writing‑down allowances have been made to an amalgamating company under section 19B, from that amalgamating company to the amalgamated company on the date of amalgamation; and ( b ) before the transfer in the case of that amalgamating company and from any time on or after the transfer in the case of that amalgamated company, the property is used in the production of income chargeable under the provisions of this Act, the following provisions, subject to subsection (18), apply: ( c ) section 19B(4) and (5) does not apply to the amalgamating company; ( d ) the writing‑down allowances under section 19B continue to be available to the amalgamated company as if no transfer had taken place; ( e ) the charge under section 19B(4) and (5) is to be made on the amalgamated company on any event occurring on or after the date of amalgamation as would have fallen to be made on the amalgamating company if the amalgamating company had continued to own the intellectual property rights and had done all such things and been allowed all such allowances as were done by or allowed to the amalgamated company. (11) Despite section 32 but subject to subsection (18), where there is a transfer of property, being trading stock to both an amalgamating company and the amalgamated company, from that amalgamating company to the amalgamated company on the date of amalgamation — ( a ) the net book value of the trading stock of the amalgamating company is deemed to be the value of the consideration given by the amalgamated company to the amalgamating company for such transfer on the date of amalgamation for the purpose of deducting the cost of trading stock to the amalgamated company as an expense in computing the gains or profits of the trade or business of the amalgamated company; and ( b ) only the amount of provision of diminution in value computed by reference to the net book value referred to in paragraph ( a ) of the trading stock (if any) may be allowed as a deduction to the amalgamated company. (12) Despite subsection (11), the value as reflected in the financial accounts of the amalgamated company on the date of amalgamation is taken as the value of the consideration given by the amalgamated company to the amalgamating company for the transfer of the trading stock on the date of amalgamation for the purpose of — ( a ) computing the gains or profits of the trade or business of that amalgamating company; and ( b ) deducting the cost of trading stock to the amalgamated company as an expense in computing the gains or profits of the trade or business of the amalgamated company, if the amalgamated company has made an irrevocable election to that effect. (13) Any gains or profits of the trade or business of the amalgamating company referred to in subsection (12) are chargeable to tax for the year of assessment which relates to the basis period in which the date of amalgamation falls. (14) Where there is a transfer of property from an amalgamating company to the amalgamated company, being property on revenue account of the amalgamating company but not on revenue account of the amalgamated company, the consideration for the transfer by the amalgamating company is taken as the amount which it would have realised if the property had been sold in the open market on the date of amalgamation. (15) The amount of consideration referred to in subsection (14) is to be used to compute the gains or profits of the trade or business of the amalgamating company and such gains or profits are chargeable to tax for the year of assessment which relates to the basis period in which the date of amalgamation falls. (16) Where there is a transfer of property from an amalgamating company to the amalgamated company, being property not on revenue account of the amalgamating company but on revenue account of the amalgamated company, the consideration for the acquisition by the amalgamated company is taken as the amount which it would have incurred if the property had been purchased in the open market on the date of amalgamation or the actual amount paid, whichever is the lower. (17) The amount of consideration referred to in subsection (16) is to be deducted as an expense in computing the gains or profits of the trade or business of the amalgamated company. (18) Where the amalgamated company ceases to carry on the trade and business in Singapore after the date of amalgamation but instead carries on that trade and business outside Singapore — ( a ) in the case of trading stock which has been transferred at net book value under subsection (11)( a ), section 32(1)( b ) applies as if that trade and business has been discontinued or transferred on the date of cessation of the trade and business in Singapore, and any gain is chargeable to tax for the year of assessment relating to the basis period in which the amalgamated company ceases to carry on that trade and business in Singapore; ( b ) in the case of property, being intellectual property rights in respect of which subsection (10) applies, the charge under section 19B(4) or (5) (as the case may be) is to be made on the amalgamated company as if the property has been sold on the date of cessation of the trade and business in Singapore; and for the purpose of computing the charge under section 19B(5), the value thereof is the amount which it would have realised if the property had been sold in the open market on the date of cessation of such trade and business in Singapore. (19) Any question arising under subsections (14), (16) and (18) regarding the open market value attributable to property or trading stock (as the case may be) is to be determined by the Comptroller. Deductions for intellectual property rights (20) No deduction under section 19B is allowed to the amalgamated company for any intellectual property rights recognised in accordance with FRS 38 and FRS 103, or with SFRS(I) 1‑38 and SFRS(I) 3, as a result of the amalgamation but which were not in existence prior to the amalgamation. [32/2019] Deductions for bad debts, expenditure, losses, etc. (21) Where — ( a ) an amalgamating company ceases to exist on the date of amalgamation; and ( b ) the amalgamated 


document_id: ita-1947
provision_ref: s34CA
chapter: PART 7 - ASCERTAINMENT OF CERTAIN INCOME
section: 34CA
title: Transfer of businesses by insurer
content:
34CA. —(1) This section applies to a case where — ( a ) a licensed insurer that is a company incorporated in Singapore (called in this section the transferor) transfers the whole of its insurance business along with all businesses ancillary to it if any (collectively called in this section the insurance business), to another company incorporated in Singapore (called in this section the transferee) under Division 1 of Part 3AA of the Insurance Act 1966, and the scheme for the transfer under section 117 of that Act takes effect on a single date (called in this section date A) that is on or after 1 November 2021; ( b ) the conditions for the application of this section to the transfer in paragraph ( a ) as set out in subsection (3) are satisfied; ( c ) the transferor also transfers all of its other trades and businesses (each called in this section a non‑insurance business), if any, to the transferee, and the transfer of every non‑insurance business takes effect on a single date (called in this section date B) that is no earlier than 12 months before date A (or such other period as may be allowed under subsection (1A)) and no later than 12 months after date A; [Act 25 of 2025 wef 08/12/2025] ( d ) the transferee has obtained approval under subsection (4) to the application of this section to the transfer of every non‑insurance business in paragraph ( c ); ( e ) the conditions of the approval in subsection (5) are satisfied; and ( f ) the transferee makes an election under subsection (6) for the application of this section to the transfer of those businesses. (1A) The Minister or Comptroller may, in a particular case, extend the period of 12 months before or after date A that date B must fall. [Act 25 of 2025 wef 08/12/2025] Interpretation (2) In this section — “effective date”, in relation to a transferred business, means — ( a ) where the transferred business is the insurance business — date A; and ( b ) where the transferred business is any non-insurance business — date B; “first 2 years of assessment”, in relation to a transferor, means the year of assessment relating to the basis period during which the transferor is incorporated and the year of assessment immediately following that year of assessment; “FRS 38”, “FRS 103”, “SFRS(I) 1-38” and “SFRS(I) 3” mean the financial reporting standards known respectively as — ( a ) Financial Reporting Standard 38 (Intangible Assets); ( b ) Financial Reporting Standard 103 (Business Combinations); ( c ) Singapore Financial Reporting Standard (International) 1-38 (Intangible Assets); and ( d ) Singapore Financial Reporting Standard (International) 3 (Business Combinations), that are made by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007, as amended from time to time; [Act 36 of 2022 wef 01/04/2023] “licensed insurer” has the meaning given by section 2 of the Insurance Act 1966; “transferred business” means the insurance business or any of the non‑insurance businesses, as the case may be. Conditions for transfer of insurance business (3) In subsection (1)( b ), the conditions are — ( a ) all the properties, rights and privileges of the insurance business are transferred to and vest in the transferee on date A; ( b ) all the liabilities and obligations of the insurance business are transferred to and become the liabilities and obligations of the transferee on date A; ( c ) the transferor permanently ceases to carry on the insurance business on date A; ( d ) the transferor is wound up or dissolved before the prescribed date or such later date as the Minister or Comptroller may allow in a particular case; and [Act 25 of 2025 wef 08/12/2025] ( e ) such other conditions as may be prescribed by regulations under subsection (31). Approval for transfer of non-insurance business (4) The transferee must, within 90 days from date A or date B (whichever is earlier) or such further period as the Minister or such person as the Minister may appoint may allow, apply to the Minister or person for approval for this section to apply to the transfer of the non‑insurance business or businesses in subsection (1)( c ). (5) The Minister or appointed person may give his or her approval subject to such conditions (including conditions subsequent) as he or she considers appropriate. Election (6) The transferee must, within 90 days from date A or date B (whichever is later) or such further period as the Comptroller may allow, elect for this section to apply to the transfers of businesses in subsection (1). (7) An election under subsection (6) must be made by the transferee by written notice to the Comptroller and is irrevocable. (8) From (and including) the effective date, the transferred business is treated as carried on in Singapore by the transferee and — ( a ) subject to subsection (14), any property on revenue account of the transferor relating to the transferred business is treated as property on revenue account of the transferee; and ( b ) subject to subsection (16), any property on capital account of the transferor relating to the transferred business is treated as property on capital account of the transferee, and the transferee is treated as having acquired the property on the date on which the transferor acquired it for the amount that was incurred by the transferor in respect of that property. Transfer of property (9) Where there is a transfer of property in respect of the transferred business from the transferor to the transferee on the effective date in respect of which allowances or writing-down allowances have been made to the transferor under sections 18C to 21 (other than section 19D), the transferor and the transferee are, subject to section 24(4), considered as having made an election under section 24(3), and section 24(3)( a ) to ( e ) applies with the necessary modifications, whether or not — ( a ) the transferee is a company over which the transferor has control; ( b ) the transferor is a company over which the transferee has control; or ( c ) both the transferor and transferee are companies under the control of a common person. (10) In the application of section 24(3)( a ) to ( e ) under subsection (9) — ( a ) a reference in that provision to a buyer is to the transferee; and ( b ) a reference in that provision to a seller is to the transferor. (11) Where there is a transfer of a building or structure in respect of the transferred business from the transferor to the transferee on the effective date for which an allowance has been made to the transferor under section 18C, the annual allowances provided under that section continue to be available to the transferee as if the transferee had incurred the qualifying capital expenditure that was incurred in carrying out the approved construction or approved renovation (as the case may be) mentioned in that section. (12) Subsection (11) does not apply unless the building or structure is used before the transfer by the transferor and after the transfer by the transferee, in the production of income chargeable under the provisions of this Act. (13) Where — ( a ) there is a transfer of property in respect of the transferred business (being intellectual property rights in respect of which writing-down allowances have been made to the transferor under section 19B) from that transferor to the transferee on the effective date; and ( b ) before the transfer in the case of that transferor and from any time on or after the transfer in the case of that transferee, the property is used in the production of income chargeable under the provisions of this Act, the following provisions apply but subject to subsection (18): ( c ) section 19B(4) and (5) does not apply to the transferor; ( d ) the writing-down allowances under section 19B continue to be available to the transferee as if no transfer had taken place; ( e ) the charge under section 19B(4) and (5) is to be made on the transferee on any event occurring on or after the effective date as would have fallen to be made on the transferor if the transferor had continued to own the intellectual property rights and had done all such things and been allowed all such allowances as were done by or allowed to the transferee. (14) Where there is a transfer of property in respect of the transferred business from the transferor to the transferee, being property on revenue account of the transferor but not on revenue account of the transferee, the consideration for the transfer of the property by the transferor is taken as the amount which it would have realised if the property had been sold in the open market on the effective date. (15) The amount of consideration mentioned in subsection (14) is to be used to compute the gains or profits of the transferred business of the transferor and such gains or profits are chargeable to tax for the year of assessment which relates to the basis period in which the effective date falls. (16) Where there is a transfer of property in respect of the transferred business from the transferor to the transferee, being property not on revenue account of the transferor but on revenue account of the transferee, the consideration for the acquisition of the property by the transferee is taken as the amount which it would have incurred if the property had been purchased in the open market on the effective date or the actual amount paid, whichever is lower. (17) The amount of consideration mentioned in subsection (16) is to be deducted as an expense in computing the gains or profits of the transferred business of the transferee. (18) Where the transferee ceases to carry on the transferred business in Singapore after the effective date but instead carries on that business outside Singapore, then in the case of intellectual property rights transferred pursuant to the transfer of that business and in respect of which subsection (13) applies, the charge under section 19B(4) or (5) (as the case may be) is to be made on the transferee as if the property has been sold on the date of cessation of the transferred business in Singapore; and for the purpose of computing the charge under section 19B(5), the value thereof is the amount which it would have realised if the property had been sold in the open market on the date of cessation of the transferred business in Singapore. (19) Any question arising under subsections (14), (16) and (18) regarding the open market value attributable to property is to be determined by the Comptroller. (20) No deduction under section 19B is allowed to the transferee for any intellectual property rights in respect of the transferred business that are recognised in accordance with FRS 38 and FRS 103, or with SFRS(I) 1‑38 and SFRS(I) 3, as a result of the transfer of the business but which were not in existence prior to the transfer of the business. (21) Where the transferee continues to carry on the transferred business and at any time — ( a ) writes off as bad the amount of a debt in respect of the transferred business, or provides impairment loss in respect of such debt, that the transferee acquires from the transferor on the effective date; ( b ) incurs an expenditure in respect of the transferred business, other than the expenditure to which prescribed sections of this Act apply; or ( c ) incurs a loss in respect of the transferred business, the transferee — ( d ) is allowed a deduction for the amount of the debt, expenditure or loss (as the case may be) if — (i) the transferor would have been allowed the deduction but for the transfer of the business; and (ii) the transferee is not otherwise allowed the deduction; and ( e ) is chargeable to tax on the amount of the debt recovered or impairment loss that is reversed if — (i) the transferor would have been chargeable to tax on such amount but for the transfer of the business; and (ii) the transferee is not otherwise chargeable to tax on such amount. (22) Where — ( a ) the transferor has been allowed a deduction in respect of any debt 


