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SPECIFICS DEDUCTIONS: SECTION 14(2) SECTION 14(5) to (8) (SPECIFIC…
SPECIFICS DEDUCTIONS
: SECTION 14(2) SECTION 14(5) to (8)
SECTION 14(2): Any reasonable salary, wages paid to employer's spouse or child
FOR EXAMPLE: Liu Pei engaged his son as an office assistant at a monthly salary of $8,000. The commercial rate of pay for a similar job is $2,000 per month
SECTIONS 14(5) to 14(8) MEDICAL EXPENSES
Expenses incurred by employers in providing medical benefits for employees are deductible. However, it is limited to 1% of total employees'remuneration.
2% deduction applies if employers implement the Portable Medical Benefits Scheme
SECTION 14(3): Foreign Cars All expenses incurred in running and maintaining a foreign car owned by the taxpayer which is registered outside Singapore and used exclusively outside Singapore are deductible.
Other Common Deductions
Legal and professional Fees
E.g Audit and Accounting Fees
Subscription to trade associations and professional bodies
Renewal Fees
E.g Those relating to renewal of license, trademarks and lease agreements
Misappropriations
E.g Misappropriation of NON CAPITAL items by employees are deductible
cannot be committed by management(director/employer)
Business Gifts
E.g Hampers to customers and supplier
Exchange Differences :
Exchange losses on revenue account that arises in the course of a taxpayer's business operations are deductible
SPECIFIC PROHIBITIONS OF THE ITA---SECTION 15
DOMESTIC EXPENSES AND PRIVATE EXPENSES
E.g wages of maid of the sole proprietor to look after the house
Expenses not incurred for purpose of producing E.g Donations
Withdrawal of capital and expenditure
E.g salary or drawings of sole proprietor
GST INPUT TAX(when taxpayer forget to register)
INCOME TAX PAID IN SINGAPORE OR OUTSIDE SINGAPORE
MOTOR CAR EXPENSES
EXAMPLES
Depreciation
salary to partners
Lump sum payment to prevent competition
Fines and penalties
Donations
Expenses related to shares,incorporation expenses