21 August 2014
The Schedule to the Income Tax (Deductible Borrowing Costs) Regulations 2008 (GN No S 115/2008) is amended with the following:
- Item 10 deleted and substituted with “Conversion fees or amendment fees”:
“Any amount payable to the lender under the loan agreement for conversion of the interest rate specified in the loan agreement that is applicable at the point of the conversion, to a lower interest rate”
- Insertion of item 12 “Front‑end fees or back‑end fees”
“Any amount payable to the lender, either at the beginning or at the end of the term of borrowing, which is equivalent to the interest which the borrower would otherwise be required to pay to the lender under the loan agreement”.
Regulation 2 shall have effect for YA 2014 and subsequent years of assessment.
The above was published in the e-gazette on 5 August 2014.
Source: Government Gazette