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APPORTION
ACCORDING
T O
USAGE
PERIOD
If
driver
provided,
Taxable
benefit
=
Annual
cost
o f
driver
x
(private/total
mileage)
Royalties
Taxable
Amount
Taxable:
Royalty
Income
Deductible
Exp
or
(Whichever
is
lower)
10%
x
Royalty
Income
Allowable
Rental
Exp
Maintenance
of
p roperty
(except
renovation,
alteration)
Fire
insurance
premium
Interest
on
loan
borrowed
for
purchase
of
property
Property
tax,
cost
of
advertising,
conservancy
Commission
(excld
first
comm)
DEDUCTIONS
[s14
&
s15]
Blocked
Input
T ax
is
tax
deductible
except
for
motor
cars.
Non-deductible
expenses:
-
DADS,
Private
exp,
not
wholly&exclusively
for
acquiring
Y,
dividends
paid,
Improvements,
sum
recoverable
under
insurance
or
contract
of
indemnity,
rent
or
repair
of
p remises
not
used
to
produce
Y,
income
tax
p aid,
Interest
p aid
out
o f
Spore,
General
provisions,
motor
car
exp
-
OUTPUT
GST
borne
by
GST
registered
trader,
-
INPUT
GST(can
claim
but
never
claim),
if
it
is
a
blocked
input
tax,
then
input
gst
is
tax
d eductible,
except
for
S-plate.
Deductible
Expenses:
Employee
salaries,
Employee
CPF,
Medisave
($1500/employee/yr),
Medical
expenses,
Interest
expense,
borrowing
costs,
rent
expense,
repairs,
bad
debts
-
Medisave
is
counted
as
a
medical
exp,
personal
insurance
not
counted.
Deemed
commencement
date
First
day
of
accounting
year
in
the
immediate
preceding
year
of
first
$
earned
in
biz
FOR
MEDICAL
EXPENSE
DEDUCTION
(1%/2%
of
employees
remun.)
Add
b ack
disallowable
medical
exp
Allowances
Transport
Allowance
Excludes
SRS
contributions,
excess
CPF,
BIKs
Non
Qualifying
R&R
(Fixtures,
Fittings
&
Installations)
Structural
works
or
expansion
of
space
Designer
fees
Professional
fees
Purchase
of
antiques
Calligraphy
or
artistic
installations
that
are
considered
fine
art
Display
Cabinets
Qualifying
R&R
a)
general
electrical
installation
and
wiring
to
supply
electricity;
(b)
general
lighting;
(c)
h ot/cold
water
system
(pipes,
water
tanks
etc);
(d)
gas
system;
(e)
kitchen
fittings
(sinks,
pipes
etc.);
(f)
sanitary
fittings
(toilet
bowls,
urinals,
plumbing,
toilet
cubicles,
vanity
tops,
wash
basins
etc.);
(g)
doors,
gates
and
roller
shutters
(manual
or
automated)/awnings;
(h)
fixed
p artitions
(glass
o r
otherwise);
(i)
wall
coverings
(such
as
wall-paper
etc.);
(j)
floorings
(marble,
tiles,
laminated
wood,
parquet
etc.);
(k)
false
ceilings
and
cornices;
(l)
ornamental
features
or
decorations
that
are
not
fine
art
(mirrors,
drawings,
pictures,
decorative
columns
etc.);
(m)
canopies
o r
awnings
(retractable
or
non-retractable);
(n)
windows
(including
the
grilles
etc.);
(o)
fitting
rooms
in
retail
outlets.
R&R
claim
over
3
years
//
Cap
at
300k
of
R&R
incurred
for
3
yr
period
PIC
DEDUCTIONS
Ded
CA
Ded
CA
-
Leasing
of
IT
&
Automated
Equipment
includes
CLOUD
COMPUTING
***
Combined
cap
of
1.2m/1.4m
for
enhanced
deductions+CA
R&D
PIC
DEDUCTIONS
(Staff
costs
[excld
directors
f ees]
+
consumables
+
MOF
approved
payments)
Base
Deduction
(special
deduction)-
100%
S14DA(1)
50%
LOCAL
//
NO
CAP
S14DA(2)
250%
LOCAL
300%
OVERSEAS
CAP
AT
1.2m
FOR
LOCAL+O/S
If
R&D
outsourced,
only
60%
of
cost
will
b e
subjected
to
E NHANCED
deductions.
Base
deduction
still
100%.
QUALIFYING P&M
Motor
car
Cant
claim
CA
QUALIFYING
P&M
EXPD
Delivery
and
installation
costs/
Alterations
to
an
existing
building
incidental
to
installation/Removing
of
old
P&M
and
reinstalling
new
P&M/COE
&
registration
fees
of
commercial
vehicles
BALANCING
ADJUSTMENTS
When
Selling
P.
>
I nitial
Sales
Proceeds-TWDV
<
0
(BA)
Include
as
CA
cost,
BC
=
CA
claimed
Sales
Proceeds-TWDV
>
0
(BC)
Adds
to
taxable
n on-trade
income
***BC
capped
at
CA
already
claimed
(granted)
Sales
proceeds:
SALE,
INSURANCE,
SALVAGE
VALUE,
COMPENSATION
RECEIVED,
OPEN
MKT
VALUE
REPLACEMENT
OF
P&M
Election
of
s21
-
Set-off
BC
of
old
P&M
from
disposal
against,
cost
of
new
P&M
SALES
BETWEEN
ASSOCIATED
PERSONS
Election
of
s24
-
Buyer
takes
o ver
asset
at
TWDV
-
No
BA/BC
for
seller
-
Buyers
CA
is
the
same
as
Sellers
i.e.
Seller
CA
=
50k/yr,
Buyer
CA
=
50k/yr
PIC
IT
&
AUTOMATED
EQUIPMENT
(CA)
enhanced
C A
-
Image
or
graphics
processing
equipment,
including
facsimile,
optical
character
reader,
laser
printer,
plotter,
image
setter,
digital
p rinting
and
direct
imaging
equipment
-
Automated
machine,
etc
-
Computer
e.g.
Computer
controlled
machine
etc
[1
year
under
s19A(2)]
-
Website
development
wef
YA2014
[1
year
u nder
s19A(10)]
-
Robot,
including
assembly
robots,
robotic
systems
and
auto-packing
lines.
-
Software
Must
have
one
year
ownership
period
to
claim
ENHANCED
CA
(can
still
claim
base)
Bad
Debt
-
Are
deductible
if:
-
Debt
arising
from
trade
-
Included
in
trading
receipts
(related
to
credit
sales
taken
up
in
i/s
Acct
rec)
-
Doubtful
debts
taken
to
be
irrevocable
-
Sums
recovered
are
taxable
(only
if
arise
from
trade
^)
1.
Advance
payment
to
supplier
(prepayment),
not
included
in
trading
receipts
Not
deductible
ADD
BACK
2.
Cash
received
from
an
ex-employee
who
defaulted
on
a
loan
earlier
Not
taxable
MINUS
OFF
(not
from
trade)
3.
Trade
debt
taken
o ver
from
another
b iz
Not
ded.
PERSONAL
RELIEFS
Loss
transferred
from
spouse
deducted
after
earned
income.
EARNED
INCOME
=
Trade
Y
+
Employment
Y
+
Pension/Royalty
Y
CA
-
TL
STATUTORY
INCOME
=
Trade
Y
+
Employment
Y
+
Others(Rental
Y/SRS)
-
CA
TL
Full
&
Salaried
partner
salary
Trade
Y
Reliefs
Earned
Y
(EI)
CPF
Relief
Spouse
Relief
QCR/HCR
WMCR
(EI)
GCR
(EI)
Dependants
Handicap
Sib
NS
Man
FML
Relief
(EI)
Course
Fee
R.
Life
Insurance
Relief
MSTU
Relief
(CPF)
SRS Relief
Compulsory
Medisave
Voluntary
CPF
&
Medisave
Relief
Conditions
Relief
capped
at
amt
of
EI
Amt
o f
relief:
Actual
CPF
contribution;
Max
C PF
Relief
=
17k
Spouse
Y
4k
p.a.
(includes
exempt
Y
i.e.
Interest
Y )
Child
Y
4k
p.a/
Child
need
not
b e
SGrean
Child
Y
4k
p.a/
Child:
SGrean;
only
for
women
Only
for
women/
Child:
SGrean,
12yrs;
Claim
for
only
one
Gp
No
income
limit
Dependants
Y
4k;
Dependants:
55yrs;
Claim
for
up
to
2
Dep.
Handicap
no
Y
limit
of
4k
Live
in
sg
+
Living
under
same
Household
or
incur
2k
Parents
can
o nly
claim
for
ONE
son
(in
total)//Wife
or
parent
must
be
SGrean
rd
2x
FML
on
one
maid;
Concession
for
max
2
maids
i.e.
3
maid
$265
per
month;
o nly
for
women
w/o
concession
Relief
=
6360/year
(265
x
2
x
12mths)
with
concession
Relief
=
2880/year
(120
x
2
x
12mths)
Relief
apportioned
to
the
no.
of
months
Cap
@
$5500/year
CPF
Relief
must
be
<
5k
p.a.
(i.e.
max
income
25k)
Retirees/Expats
can
claim
no
Amt
o f
Relief
is
LOWEST
OF:
CPF
contr.
a)
Actual
premium
paid
b)
7%
of
capital
sum
payable
on
death
c)
diff
between
5k
and
CPF
relief
1)
Employer
top-up
E mployees
CPF
Employee:
Not
tax
deductible,
but
given
personal
relief(7k
Cap
pa)
2)
Top
up
C PF
of
spouse/sibling
(Y
4k
p.a.)
/parents/grandparents
(no
Y
limit)
Tax
relief
cap
@
7k
pa
or
actual
paymt
(can
be
apportioned)
Employers
SRS
contribution
to
your
acct
Taxable,
but
given
relief
Amount
of
relief:
Actual
contribution
made
Max
SRS
Contribution
(p.a.)
Sgrean/PR:
$12,750
-
Foreigner:
$29,750
For
Self-employed
persons.
Relief
capped
at
lowest
of:
a)
Compulsory
contribution
(According
to
table)
b)
Actual
Contribution
c)
Max
Contribution
(according
to
table)
Total
relief
capped
at
30.6k
(refer
to
tables
below)
COMPULSORY
MEDISAVE
CONTRIBUTION
(rates)
RELIEFS
GIVEN
VOLUNTARY
CPF
Contribution
LOWEST
OF:
a)
Actual
contribution
b)
36%
of
NET
TRADE
INCOME
c)
$30,600
Mandatory
CPF/Medisave
contributions
PARTNERSHIPS
CA/Donations
allocated
according
to
profit
sharing
ratio
CA/Donations
claimed
on
indiv
tax
computation
-
Interest
exp
on
loan
from
partner
DEDUCTIBLE
(do
nth)
-
Medical
benefit
from
partnership
TAXABLE
on
partner
NON-RESIDENTS
Interest
payments/other
related
exp
to
NON
RESIDENTS,
not
tax
deductible
(add
b ack)
S12(6)
DEEMED
SOURCED
IN
SG
Interest,
commission,
fees
and
any
other
payment
in
connection
with
loan
or
indebtedness
UNLESS:
-
Payment
for
loan
for
biz
carried
on
outside
SG
through
PE
outside
SG
-
Payment
for
loan
for
immovable
property
outside
SG
S12(6A)
Exclusion
Not
Deemed
Source
i n
SG
1.
Payment
for
arrangement/management/service
relating
to
loan
or
indebtedness
that
is
performed
outside
SG
2)
Payment
for
any
guarantee
to
any
loan
or
indebtedness,
where
guarantee
provided
for
or
on
behalf
o f
person
resident
in
SG
or
PE
in
SG
by
specified
NR
person.
SPECIFIED
NR
PERSON
1.
Must
be
a
COMPANY
NOT
incorporated
in
SG
2.
Does
not
carry
o n
a
biz
in
SG
by
himself
or
in
associated
w
others
3.
If
he
carries
on
biz
in
SG
or
has
PE
in
SG,
specified
services
must
NOT
be
performed
through
that
biz/PE
S12(7)
DEEMED
SOURCED
IN
SG
1.
Payment
for
a/b/c/d
borne
directly
or
indirectly
by
person
resident
in
SG
or
PE
in
SG
2.
Payment
that
is
deductible
against
income
derived
from
SG
S12(7)
Rate
Nature
o f
Income
(a)
10%
Royalty
(b)
10%
Know
How
use
of/right
to
use
scientific,
technical
industrial
or
commercial
knowledge/info
17%
Show
How
(Incld
Cloud
Computing)
(c)
17%
Management
Fees
(admin,
financial
services,
marketing)
(d)
15%
Rental
of
movable
properties
Technical
service/
Installation
/
Training
Service
Show
How
Only
NR
Coy
w
N ON
FINAL
tax
(17%)
entitled
to
PTE
(i.e.
know
how,
royalty)
ROYALTY
Payer
granted
the
right
to
commercially
exploit
the
copyright
or
licensing
for
copyright
exploitation
NOT
ROYALTY
if
1.
Transfer
of
o wnership
of
distinct
and
specified
property
e.g.
Acquisition
of
technology
Capital
item
2.
Right
to
use
the
software/digitalized
goods
for
personal
use
or
for
use
within
business
operations
i.e.
n o
right
to
exploit
S12(7A)
EXCLUSIONS
NOT
DEEMED
SOURCED
IN
SG
1.
Payment
for
rendering
assistance/service
[12(7)b]
or
management/assistance
in
management
p erformed
outside
SG
for
or
on
behalf
o f
person
resident
in
SG
or
PE
in
SG
by
specified
NR
person.
2.
The
use
of
or
the
right
to
u se
software,
information
or
digitised
goods,
not
being
a
right
to
commercially
exploit
in
one
form
or
another
the
copyright
in
such
software/
information/digitised
goods
such
as
the
right
to
(i)
reproduce,
modify
or
adapt,
and
d istribute
the
software,
information
o r
digitised
goods;
or
(ii)
prepare
a
derivative
work
b ased
on
the
software,
information
o r
digitised
goods
for
distribution.
NO
W ITHHOLDING
TAX
on
PEs
that
are
SG
branches
of
NR
coy
40C Relief
Tax
Rates
of
NON-RESIDENT
EMPLOYEES
*For
calc
of
tax
using
resident
rate,
treat
income
as
from
resident.
i.e.
W hat
is
the
tax
p ayable
aft
Personal
Reliefs
given?
NON-RESIDENT
PROFESSIONALS
(WTH
15%
gross/
20%
net)
Gross
Y
-
Accommodation,
airfare,
allowances,
per
diem,
transport
and
meals
*Private
expenses
incurred
(transport,
food,
airport
transfer)
ND
/
if
private
exp
are
provided,
they
are
taxable
NON-RESIDENT
PUBLIC
ENTERTAINERS
(WHT
10%)
(40A
relief)
Gross
Y
-
Fees,
Allowances,
Food,
Airfare,
Accommodation
*Expenses
incurred
by
entertainer
for
p dtn
of
Y
is
deductible
-
60
day
rule
dont
apply.
A LWAYS
have
to
pay
tax
Deadlines for Submissions:
Estimate Chargeable Income submitted 3 mths aft acct
Y/E.
Form C has to be submitted by 31/Jul or latest 30/Nov
regardless of year end
Form B, M, P, P1, T has to be submitted by 15/4 of YA, but
can ask for extension.
Notice of assessment (NOA) issued when tax is due. Pay
within 1 mth of the NOA, else late penalties will apply. NOA
becomes final and conclusive if no objection is received by
the Comptroller within the 30 days
NOA p. 398 of ITA 4 types 1. Original 2. Additional (more
tax to pay) 3. Amended (Less tax to pay) 4. Advance (given
to expats leaving the country)
S93(3) Final & conclusive NOA can be amended if there is
claim for error or mistake. S93(A) However, the claim must
be made before the end of 6 years (before YA 08) or within
4 years from end of the year in which assessment was made.
Comptroller may accept a late objection if there are
reasonable grounds for it.
Instalment Payments of Tax can be done if you start paying
tax less than 2 months after y/e. If right after y/e, 10
instalments. If 1 month later, 8 instalments. If 2 months later,
6 instalments. To do so, you need to submit ECI 2 months
before due date.
s87 Late payment penalties apply if you do not pay tax 1
month after NOA, 5% penalty will be imposed immediately
on tax that is not paid. You still do not pay within 60 days of
the penalty, an additional 1%(2% for GST) penalty each
complete month will be imposed, up to 15 months (15%).
Max 17% total
For employees leaving Singapore, employer required to
W/H all money due. Only payable on the earlier of 1)
expiration of IR21 or 2) tax clearance.
If you have any objections, should pay first and argue later,
to avoid penalty. The objection must be filed within 30 days
from the date of issue of the assignment. The objection must
be in writing and his grounds of objection must be stated.
It is also possible to apply for a stand over to pay an amt
lower thn total amt. However, if the final tax liability agreed
is higher than the stand over amount, late penalties will apply
frm due date of paymnt of the amt.
If a taxpayer is unable to agree with the Comptroller on
the amount of tax payable, A Notice of Refusal to Amend
should be obtained from the Comptroller. A notice of appeal
should be lodged with the Board of Review within 7 days frm
the date of issue of the Notice of Refusal to Amend. A
petition of appeal, stating the grounds of appeal, should then
be lodged within 30 days from the notice of appeal. Onus is
on the taxpayer to show that the assessment is excessive. The
decision of the Board of Review is final where no question of
law is involved.
The taxpayer may proceed with his appeal to the High Court
only if the issue concerns a question of law or a question of
mixed law and fact and the disputed tax exceeds $200.
Summary of offences with penalties are
1) Non-compliance(S94) or Obstruction(S98) - $1000 fine/6
months jail (if default fine) 2) Incorrect return w reasonable
excuse (S95(2)) just pay up the tax
3) Incorrect return due to negligence or no reasonable excuse
(S95(2)) - $5000 fine, 3 years jail & 200% penalty. If
disclose everything, can negotiate 200%. 4) Evasion (S96(1))
- $10,000 fine, 3 years jail & 300% penalty. 5) Serious
evasion (S96A) - $50,000 fine , 5 years jail and 400%
penalty. 6) Tax officers & purported tax officers (S97) $10,000 fine & 3 years jail