Can I Claim Staff Training and Development as a Business Expense in Singapore?
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.
What Inland Revenue Authority of Singapore (IRAS) says
Staff training costs, including course fees, materials, and examination fees paid for employees, are deductible under section 14(1) of the Singapore Income Tax Act as staff costs. Additionally, qualifying training programmes may attract enhanced deductions or grant support under SSG-administered schemes.
When you can claim
- Course fees for employees attending SkillsFuture-funded or WSQ (Workforce Skills Qualifications) programmes.
- External training programmes, workshops, seminars, and conferences directly related to the employee's work function.
- Online learning platform subscriptions (e.g., LinkedIn Learning, Coursera for Teams) for employee skill development.
- In-house training programme development costs, including materials, facilitator fees, and venue hire.
- Professional certification examination fees (e.g., ACCA, CIMA, CPA) paid by the company for employees.
When you cannot claim
- Training costs for shareholders or directors that are not also employees of the company (must have an employment relationship).
- Personal development courses with no clear connection to the employee's job function.
- Course fees for individuals who leave the company immediately after training (IRAS may challenge deductibility if the benefit accrues to the individual rather than the business).
- Capital elements of training (e.g., cost of building a training facility, which would need to be capitalised).
Good to know
Pro tip: The SkillsFuture Enterprise Credit (SFEC) provides an additional 90% subsidy (up to S$10,000 per enterprise) on out-of-pocket training costs for eligible employers. Combined with the 100% tax deduction, the actual net cost of qualifying training to an SME can be very low. Register for SFEC eligibility via the MySkillsFuture for Enterprises portal before booking training programmes.
Stop guessing what you can claim in Singapore
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