Business Service Dept
66531218 | info@asg.sg
Mon-Fri: 9am-6pm, Sat: 12pm-4pm

Accounting Dept
65216738 | ufr@asg.sg
Mon-Fri: 9am-6pm

Print & Design Dept
66531508 | print@asg.sg
Mon-Fri: 9am-6pm

VO Office Dept
65216752 | vo@asg.sg
Mon-Fri: 9am-6pm

Tax Deduction / Allowances

    14 May

    Tax Deduction / Allowances

    Tax deduction

    What is tax deduction / allowances?

    400% Tax Deduction/ Allowances is one of the option under Productivity and Innovation Credit (PIC) scheme where Inland Revenue Authority of Singapore (IRAS) will multiply 400% of the money that was spent on the total qualifying expenditure and then use that amount to deduct from the business’ payable tax.

    Activities must be approved and qualified by Inland Revenue Authority of Singapore (IRAS) before the business is entitled to enjoy the benefits laid down by the PIC scheme.

    Cash payout is another option in the PIC scheme. Business can opt for one of the choices if they feel that they can benefit from that particular scheme more than other.

     

    Who is eligible to claim 400% tax deduction / allowances?

    All businesses that are registered through Accounting and Corporate Regulatory Authority (ACRA) such as sole-proprietorships, partnerships and companies are eligible to claim 400% tax deduction / allowances.

    As of from YA 2015 to YA 2018, qualified businesses would be able to claim 400% tax deduction for up to $600,000 instead of $400,000 previously.

     

    How 400% tax deduction / allowances works?

    Year of Assessment (YA)Expenditure Cap per
    Qualifying Activity
    Tax Deduction per
    Qualifying Acitivity
    2011 and 2012

    (Combined)

    $800,000$3,200,000

    ($800,000 x 400%)

    2013 to 2015

    (Combined)

    $1,200,000$4,800,000

    ($1,200,000 x 400%)

    2016 to 2018

    (Combined)

    $1,200,000$4,800,000

    ($1,200,000 x 400%)

     

    Example:

    ABC Company bought $10,000 worth of computers, a qualifying expenditure during financial year 2014, YA 2015. ABC Company need to pay tax amounting to $50,000 for YA 2015. Thus, by using the 400% tax deduction / allowances, calculation as per follows:

    Qualifying expenditure eligible for tax deduction,

    $10,000 (Computers) x 400% = $40,000

    Total tax payable,

    $50,000 – $40,000 = $10,000

     

    Claiming Tax Deduction

    Businesses intending to claim tax deduction in their income tax return are required to do so by the filing due date for the respective YA.

    Sole Proprietorships and Partnerships have to do so by 15 April, or 18 April if they choose to use e-filing. Companies, on the other hand, are required to claim by 30 November, or 15 December if using e-filing.

    Our Clients

    Absolute
    aprikot
    Axcell
    IGC
    Care-Lyna
    CBRE
    Century-21
    Design-Drive
    Digital-Logic
    e-marketing
    ERC
    Gaining-Edge
    Huttons
    Orange-Tee
    Tetra-pak
    Singapore-Redcross
    GGA
    progress-media
    Zenprop
    Housing-Loan
    gohnson-gohnson
    KPMG
    NUS
    pokka
    propnex
    resort-world-sentosa
    singapore-post
    Singtel
    SP
    swisshotel-merchant-court

    Our Awards & Recognitions


    Declaration of Support for National Service

    GBiz Trading Partner

    DBS Bronze Award

    OCBC Platinum Partner Award 2011/2012

    OCBC Gold Partner Award 2012/2013

    OCBC Valued Partner Award 2015/2016

    ACRA Approved CSP

    Member of SCCCI

    Skillsfuture Course Provider

    MYOB Professional Partner

    Quickbooks Intuit Proadvisor

    XERO Certified Advisor

    LCCI Approved Center

    Featured On

    Corporate Social Responsibility (CSR)