What can Singapore businesses claim as expenses?
10 common business expenses with Inland Revenue Authority of Singapore (IRAS)-compliant rules for limited companies, sole traders and contractors in Singapore.
Advertising and Marketing
Fully deductible as revenue expenses. Digital advertising, content creation, agency fees, trade show costs, and branded promotional materials are all deductible. If GST-registered, input GST on marketing spend is reclaimable.
Entertainment and Business Meals
50% deductible for qualifying entertainment expenses under section 14(2A). Staff entertainment (e.g., annual dinner and dance) is fully deductible. Receipts and a log of who was entertained and the business purpose are essential.
Equipment and Computer Hardware
Yes, via capital allowances. Standard 3-year write-off (one-third per year) or accelerated 1-year write-off for qualifying assets (S$30,000 combined cap per YA). Assets costing S$500 or less are fully expensed in the year of purchase.
Home Office Expenses
Partially deductible. There is no flat-rate home office deduction in Singapore. A company can reimburse directors or employees for actual, documented home office costs at arm's length, and those reimbursements are deductible as business expenses.
Motor Vehicle Expenses
Running costs (fuel, maintenance, road tax, insurance) for S-plate business vehicles are deductible. Capital allowances are not available for Singapore-registered private cars. The COE (Certificate of Entitlement) cost is capital and not deductible.
Office Rent and Co-working Fees
Fully deductible. Office rent, co-working memberships, virtual office registered address fees, and related costs (utilities, service charges) are all deductible operating expenses under section 14(1).
Professional Fees (Audit, Accounting, Legal)
Fully deductible where incurred for revenue purposes. Accountancy fees, audit fees, company secretarial fees, and legal fees for ongoing trading operations are all deductible. Legal fees relating to capital transactions (acquisitions, share issues) are not.
Staff Salaries and CPF
Fully deductible. Salaries, wages, bonuses, and employer CPF contributions (17%, capped at S$1,258/month on ordinary wages) are all deductible as business expenses. The Skills Development Levy (SDL) is also deductible.
Staff Training and Development
Fully deductible at 100%. Staff training costs qualify for SkillsFuture Enterprise Credit (SFEC) and Enhanced Training Support grants, which can substantially reduce net cost beyond the tax deduction.
Travel and Transport Expenses
Business travel is fully deductible. Personal travel embedded in a business trip is not deductible. There is no standard per-km mileage rate in Singapore; actual cost or car rental costs are used.