Employment expensesEmployment expenses can be deducted from employment income if they are wholly and exclusively incurred in the production of the income in Singapore. These expenses must have been incurred by the employee in carrying out one's official duties, and cannot have been reimbursed by the employer, of a capital/private nature, or incurred on public transport. Show Personal deductionsCharitable contributionsGenerally, a 250% deduction may be claimed for qualifying donations to approved charities, foundations, and grantmakers. Mortgage deductionInterest expense may be deductible, provided it is incurred wholly and exclusively in the production of taxable income. Mortgage interest is, therefore, deductible only where the property concerned yields income. Subscription feesAn individual can deduct annual subscriptions paid to professional institutes or societies in which membership is generally required as a condition of employment. Subscriptions paid to professional bodies or societies for professional updates, knowledge, and networking are generally allowed as a deduction as well if relevant to the individual’s employment duties. Medical expensesNo deductions are allowed for medical expenses or for any other personal or household expenditure. SpousesSpouses cannot transfer qualifying deductions (including excess capital allowances, trade losses, donations, and rental deficits) to each other. Any unabsorbed trade losses or capital allowances can be carried forward to future years to be offset against the future income of the taxpayer until the amount is fully utilised, subject to existing rules. Any unutilised donations can also be carried forward to future years to be offset against the future income of the taxpayer, up to a maximum of five years. Personal reliefsFor year of assessment 2022 (income year 2021), the following amounts are deductible from the assessable income of a resident individual to arrive at the income subject to tax:
Qualifying child relief and handicapped child relief may be apportioned and claimed as agreed between a husband and wife. The total relief claimed by husband and wife must not exceed the maximum claim available for each child.
Additional reliefs are granted for dependant great-grandparents and handicapped siblings. Personal income tax (PIT) reliefs are subject to a cap of SGD 80,000 per year of assessment. Business deductionsWhere an individual carries on a trade, business, profession, or vocation, deductions are allowed for all outgoings and expenses incurred wholly and exclusively in the production of the income being assessed (except expenses specifically prohibited under the Income Tax Act), including capital allowances (fiscal depreciation) on most fixed assets except for land and non-industrial buildings. LossesBusiness losses and unutilised capital allowances may be offset against other sources of income such as employment, interest, dividend, and rental income in the same year. Any remaining unabsorbed losses and capital allowances can be carried forward, subject to certain conditions. Current year unutilised business losses and capital allowances of up to SGD 100,000 can also be carried back to the year of assessment immediately preceding the year of assessment in which the loss and capital allowance arose. |