Can I Claim Entertainment and Business Meals as a Business Expense in Singapore?
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.
What Inland Revenue Authority of Singapore (IRAS) says
Section 14(2A) of the Singapore Income Tax Act limits the deduction for entertainment expenses to 50% of the qualifying amount. Entertainment is defined broadly to include hospitality of any kind, including food, drink, accommodation, and entertainment for clients, customers, or business associates.
When you can claim
- 50% of the cost of business meals with clients, prospects, or suppliers where a genuine business discussion takes place.
- 50% of drinks, gifts, or hospitality provided to clients at company events.
- 100% of expenses for staff-only events, such as annual dinner and dance, team-building activities, or internal company celebrations (not involving clients).
- 50% of corporate hospitality at sporting or cultural events for clients.
- 50% of the cost of promotional gifts to customers that are branded or have a clear business purpose.
When you cannot claim
- The disallowed 50% portion of qualifying entertainment expenses (this is a permanent partial disallowance, not a timing difference).
- Personal meals consumed alone (not entertainment in the business sense).
- Extravagant or excessive entertainment where IRAS would question whether the expense is genuinely for business income production.
- Entertainment for family members of directors or employees without genuine business involvement.
Good to know
Pro tip: Keep a contemporaneous record for every entertainment expense: date, venue, names and companies of those entertained, and the business topic discussed. IRAS auditors will ask for this during an audit. Many accounting apps (including AccountsOS) let you attach a photo of the receipt and add a note about the business purpose at the time of the meal, building your evidence file automatically.
Stop guessing what you can claim in Singapore
AccountsOS automatically categorises expenses with Inland Revenue Authority of Singapore (IRAS)-aware rules and tells you exactly what is claimable.
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