Can I Claim Home Office Expenses as a Business Expense in Singapore?
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.
What Inland Revenue Authority of Singapore (IRAS) says
IRAS allows deductions for expenses incurred wholly and exclusively in the production of income. Home office costs can be claimed on an actual-cost basis where there is a genuine, quantifiable business use. IRAS requires that any space claimed be genuinely used for business purposes and not personal use.
When you can claim
- Proportionate rent or mortgage interest attributable to a dedicated home office room used exclusively for business (calculated as the room's floor area divided by total home floor area).
- Actual utility costs (electricity, broadband) attributable to business use, supported by usage records or a reasonable apportionment methodology.
- A company formally reimbursing a director for verifiable home office expenses under a written arm's-length agreement.
- Equipment purchased for exclusive use in a home office (e.g., a second monitor, dedicated printer used solely for work) claimable as capital allowances.
When you cannot claim
- A portion of mortgage principal payments (capital repayments are not deductible expenses).
- Any home office claim where the space is also used for personal activities without clear demarcation.
- Estimates or flat-rate deductions without supporting documentation or an objective apportionment basis.
- Costs incurred before the company or business commenced operations.
Good to know
Pro tip: If you operate as a Pte Ltd, have the company pay you a formally documented monthly reimbursement for home office costs rather than claiming it personally. Use a written reimbursement policy, keep invoices for utility bills, and calculate the apportionment consistently year on year. IRAS expects the same methodology to be applied in each accounting period.
Stop guessing what you can claim in Singapore
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