IRAS has launched an online tool that lets companies check whether common business expenses are tax-deductible, alongside its guidance on the "wholly and exclusively incurred in the production of income" test.
Singapore’s Inland Revenue Authority (IRAS) added the business expense deductibility checker to its business expenses guidance page on 29 September 2026. Companies can search or browse by expense type to see whether common business expenses are tax-deductible.
Under the guidance, a business expense is generally deductible if it is “wholly and exclusively incurred in the production of income”. It must meet all four of the following conditions:
- The expense is incurred solely in the production of income.
- The expense is incurred, which means the legal liability to pay has arisen, whether or not payment has been made.
- The expense is revenue in nature and not capital. Revenue expenses cover day-to-day costs such as salaries, rent and utilities, while capital expenses are investments expected to provide long-term benefits, such as the acquisition of fixed assets.
- The expense is not prohibited from deduction under the Income Tax Act 1947.
Deductible expenses
Common deductible expenses include office upkeep, postage, stationery, printing, telephone bills, utilities, secretarial fees, and accounting or bookkeeping fees. Staff costs such as salaries, bonuses, training, contractual retrenchment pay and statutory Central Provident Fund contributions are also deductible. Medical expenses are deductible subject to statutory limits.
Other deductible items include advertising, exhibition expenses, commissions, and sponsorship fees incurred in the ordinary course of business. Rental of business premises, software and licence renewals, repairs and maintenance, bank charges, trade bad debts, specific provisions for bad debts, trade-related legal fees and revenue-related exchange losses also qualify.
Non-deductible expenses
Capital expenditure is not deductible. This covers the acquisition of fixed assets, fixed assets written off, company incorporation costs and software setup fees. Capital allowances may be claimed for qualifying fixed assets instead.
Private travel, reimbursements for home-to-office commuting and personal entertainment are also non-deductible. The same applies to expenses on private cars (S-plated, Q-plated or RU-plated) and Certificate of Entitlement fees, depreciation, amortisation, general provisions for bad debts or obsolete stock, statutory fines and penalties, Singapore income tax, and non-trade legal fees.
Enhanced and double deduction schemes
Singapore also offers schemes that provide enhanced or double tax deductions for specific activities:
- Enterprise Innovation Scheme: a 300% additional tax deduction on up to SGD 400,000 of qualifying training expenditure per Year of Assessment, from YA 2024 to YA 2028.
- Double Tax Deduction for Internationalisation Scheme: double deductions for eligible market expansion and export development activities.
- Corporate Volunteer Scheme: tax incentives for corporate volunteering.
- Research and development tax measures: deductions to encourage local research and development.
The checker gives companies a quick reference for routine expense claims. Businesses with less common expenses should refer to the full IRAS guidance on business expenses.
