19 June 2013

On 6 June 2013, the Inland Revenue Authority of Singapore (IRAS) issued a e-Tax Guide, ‘Income Tax: Tax Deduction for Expenses Incurred on Renovation or Refurbishment Works Done to Your Business Premises’.

This e-Tax Guide explains the tax deduction granted under section 14Q of the Income Tax Act (ITA) for the capital expenses incurred for renovation or refurbishment works done to business premises.

Certain qualifying capital expenses, up to a cap, incurred on or after 16 February 2008 for renovation or refurbishment works done to business premises can be claimed as a tax deduction against the income earned from the business. The original expenditure cap of $150,000 is increased to $300,000 from YA 2013 onwards.

The deduction is given over a period of three consecutive years on a straight-line basis, starting from the year of assessment those expenses are incurred.

The previous e-tax guide published on 6 June 2012 is updated with the following changes:

• Paragraph 9 has been revised to remove the requirement to submit the following together with the tax return:

(a) An itemised list (including the related costs incurred) of the renovation and refurbishment works done to the business premises; and

(b) Confirmation in the tax return (on the itemised list) that the renovation or refurbishment works do not require the approval of the Commissioner of Building Control.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website. Visit http://www.iras.gov.sg/ for more information.