Non-Deductible Business Expenses

Non-deductible business expenses are activities you or your employees pay for that do not fulfil the conditions above. This includes personal expenses such as travel or entertainment not related to the running of the business, and capital expenses such as expenses incurred to incorporate a company and purchase of fixed assets.

Example:

• Amortisation

• Bad debts (non-trade debtors)

• Certificate of entitlement (COE) for motor vehicles*

• CPF-related -Voluntary contributions to CPF (refers to CPF contributions exceeding the statutory rate)

• Interest incurred on late CPF contributions

• Depreciation (you may instead claim capital allowances )

• Dividend payments made on preference shares

• Donations

• Entrance fee (country club or other clubs)

• Exchange loss (non-trade or capital in nature)

• Expenses incurred before commencement of business

• Fixed assets written off

• Fixed assets acquisition cost (you may instead claim capital allowances )

• Fines

• Goodwill payment

• Impairment loss on non-trade debts

• Singapore income tax and any tax on income in country outside Singapore

• Installation of fixed assets

• Interest expenses on non-income producing assets ( interest adjustment)

• Legal and professional fees (non-trade or capital transactions)

• Medical expenses (amount exceeding 1%/ 2% of total remuneration if company is under PMBS or TMIS)

• Motor vehicle expenses (S-plated and RU-plated cars)

• Penalties

• Prepaid expenses (not relating to the relevant basis period)

• Private and domestic expenses (expenses not incurred for business purpose)

• Private hire car

• Provision for bad and doubtful debts (general)(note impairment loss on trade debts)

• Provision for obsolete stocks (general)

• Renovation or refurbishment works (you may claim Section 14Q deduction for qualifying expenditure incurred from 16 Feb 2008)

• Retrenchment payments - Ex-gratia retrenchment payments and outplacement support costs, where there is a complete cessation of business.

• Transport (S-plated and RU-plated cars)

• Withholding tax on the interest payments borne by companies on-behalf of non-residents

Source: https://www.iras.gov.sg/irashome/Businesses/Companies/Working-out-Corporate-Income-Taxes/Business-Expenses/