Free Singapore business expense deduction calculator. Enter revenue and deductible expenses to see taxable profit and estimated corporate tax at 17 percent.
Taxable profit and corporate tax after business deductions.
Estimated corporate tax
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Total deductions
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Taxable profit
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Exempt amount
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Effective tax rate
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Your breakdown
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What makes an expense deductible in Singapore
The Singapore income tax deduction for business expenses follows a simple test: the expense must be incurred wholly and exclusively in the production of income, and it must be revenue rather than capital in nature. Revenue expenses are recurring costs of running the business: rent, salaries, supplies, marketing. Capital expenditure, buying a vehicle, fitting out a new office, purchasing software licences that last several years, is not immediately deductible but may attract capital allowances over the asset life under Section 19 and 19A of the Income Tax Act. The most commonly disallowed claims are personal expenses passed through the business, private car costs, and entertainment where the business purpose is unclear. The safest practice is to maintain receipts and a clear business rationale for every deduction claimed.
How training costs are treated
Training and skill development costs for employees are generally deductible, and under the SkillsFuture Enterprise Credit (SFEC) scheme eligible companies receive co-funding of up to 90 percent of out-of-pocket training costs, subject to caps. This means the actual cash cost to the business can be very low, and the net amount after subsidy is what you enter as a deductible expense. Training costs for directors who are also shareholders are deductible provided the training is genuinely business-related and not personal interest or hobby-driven. IRAS will scrutinise lavish overseas training attached to leisure itineraries, so documentation of the programme and its relevance to the business is important.
The corporate tax calculation and partial exemption
Singapore taxes corporate income at a flat 17 percent on chargeable income after deductions. For most companies the partial tax exemption reduces the effective rate well below 17 percent: 75 percent of the first $10,000 of chargeable income and 50 percent of the next $190,000 are exempt. On a taxable profit of $317,000 (using the default inputs in this calculator) the exemption removes $102,500, leaving $214,500 taxed at 17 percent for a bill of $36,465 and an effective rate of about 11.5 percent. The net-of-tax profit available for dividends, which are not taxed again in shareholders' hands under Singapore’s one-tier system, is $317,000 minus $36,465 or roughly $280,535.
Frequently asked questions
Which business expenses are deductible in Singapore?
Under Section 14 of the Singapore Income Tax Act, a deduction is allowed for expenses incurred wholly and exclusively in the production of income. Common deductible expenses include staff salaries and CPF employer contributions, office rent, utilities, professional fees (accounting, legal, consulting), IT equipment and software, advertising and marketing, travel directly related to business, and training costs. Capital expenditure is generally not deductible as an expense but may attract capital allowances over time. Personal expenses and entertainment without a clear business link are disallowed.
Can a company deduct its own directors fees?
Yes. Directors fees approved by shareholders are deductible as a staff cost for the company. However, the director receiving the fees must declare them as personal income and pay income tax at their marginal rate. CPF also applies on directors fees paid to Singapore citizen or PR directors who are employed under a contract of service, but not to non-executive directors or those under a contract for service. The company gets the deduction regardless of whether CPF applies.
What is the partial tax exemption that applies to the result shown?
Most Singapore companies receive a partial tax exemption: 75 percent of the first $10,000 of chargeable income is exempt and 50 percent of the next $190,000 is exempt. This calculator applies that exemption, so the tax shown is lower than a simple 17 percent of profit. Qualifying new start-ups in their first three years get a more generous exemption: 75 percent of the first $100,000 and 50 percent of the next $100,000.
Is GST paid on expenses a deductible cost?
If your company is GST-registered and claims input tax credits, the GST component of expenses is recovered via the GST filing and is not part of the net cost. In that case enter only the GST-exclusive amount of each expense. If your company is not GST-registered, you cannot recover the GST, so the full GST-inclusive amount is your actual cost and should be entered. This distinction is particularly relevant for legal fees, IT services, and consultancy where GST at 9 percent adds meaningfully to the bill.