For Singapore income tax purposes, all companies are required to file their income tax return for Year of Assessment (“YA“) 2017 by 30 November 2016 (or by 15 December 2016 in the case of e-filing) even if they did not carry on any business activities in the preceding financial year.
Recently, IRAS updated their website to remind the corporate taxpayers to pay attention to the following items when preparing and submitting their income tax returns and computations:
Research & Development (“R&D”)
Companies should note that routine modifications or changes to existing products and processes do not qualify as R&D projects. For example, for a business that makes and sells bread, changing the shape of a bun by modifying the machine, or improving bread texture by changing the composition of its existing ingredients would not qualify for R&D benefits. Businesses should also maintain proper documentation of their R&D projects to substantiate their claims.
Renovation & Refurbishment (“R&R”) Works
Companies are reminded that the total R&R claims should not exceed $300,000 expenditure cap for the 3-year period; and a tax deduction for such claims cannot be made on non-qualifying items (e.g. designer fees, fine arts and structural works).
Double Tax Deduction for Internationalisation (“DTDI”) Scheme
Double Tax Deduction for Internationalisation (DTDI) Scheme
Companies can claim a 200% tax deduction for qualifying expenses incurred on qualifying market expansion and investment development activities on up to $100,000 without prior approval. However, approval from ieSingapore/ Singapore Tourism Board is required for claims exceeding $100,000 or in respect of non-qualifying activities.
If you have any questions, please contact firstname.lastname@example.org.