Can I Claim Office Rent and Co-working Fees as a Business Expense in Singapore?
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).
What Inland Revenue Authority of Singapore (IRAS) says
Rent and associated costs for premises used wholly and exclusively in the production of business income are deductible under section 14(1) of the Singapore Income Tax Act. IRAS requires that the space be genuinely used for business purposes and that the rental is at arm's length.
When you can claim
- Monthly rent for a dedicated office space leased under a formal tenancy agreement.
- Co-working space memberships (hot desk, dedicated desk, or private office) where the space is used for business operations.
- Virtual office registered address fees: Singapore requires a registered address for ACRA purposes, and this cost is a legitimate business expense.
- Utilities (electricity, water, aircon), service charges, and maintenance fees contractually payable by the tenant.
- Costs of fitting out leased office space (revenue in nature, or capital allowances if capital).
When you cannot claim
- Rent for residential properties used by directors or employees as their homes (personal benefit).
- Capital portion of a lease premium paid upfront (may need to be amortised or treated as capital).
- Rent paid to a connected person at above market rates (IRAS will only allow the arm's-length portion).
- Costs of purchasing a property (capital expenditure; note that industrial and commercial buildings do not qualify for industrial building allowances in most cases).
Good to know
Pro tip: If your company is at an early stage and you are working from home, consider using a co-working registered address (even just for ACRA purposes) rather than your residential address. The co-working fee is fully deductible, keeps your home address off public ACRA records, and establishes a clear separation between personal and business addresses that simplifies expense claims.
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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