Can I Claim Professional Fees (Audit, Accounting, Legal) as a Business Expense in Singapore?
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.
What Inland Revenue Authority of Singapore (IRAS) says
Professional fees are deductible under section 14(1) of the Singapore Income Tax Act if they are wholly and exclusively incurred in the production of income and are revenue in nature. IRAS distinguishes between revenue legal/professional costs (deductible) and capital costs (not deductible, though some may attract capital allowances).
When you can claim
- Annual audit fees charged by a Singapore-registered public accountant for a company that is not audit-exempt.
- Bookkeeping and accountancy services, including fees for preparation of management accounts, GST returns, and tax computations.
- Company secretarial fees for routine ACRA filings, annual return preparation, and maintenance of statutory registers.
- Legal fees for drafting or reviewing commercial contracts (service agreements, supplier contracts, client agreements) in the ordinary course of business.
- Legal fees for employment matters, including drafting employment contracts and handling routine employment disputes.
When you cannot claim
- Legal fees for acquiring a business, purchasing property, or other capital transactions (these may be capitalised and potentially form part of the cost of the asset).
- Fees for incorporating the company or increasing share capital (capital in nature).
- Legal costs incurred in disputes that are capital in nature, such as defending ownership of a freehold property.
- Fees for matters unconnected to the company's income-producing activities.
Good to know
Pro tip: Many small Singapore Pte Ltds bundle audit, accounting, and secretarial services with a single corporate services provider. These bundle fees are typically fully deductible. Ensure the invoice breaks down the services provided so that any capital-nature components (e.g., one-off incorporation work) are identified and not confused with recurring deductible fees.
Stop guessing what you can claim in Singapore
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