Deductions for Employees

You may be able to claim tax deductions on employment expenses 'wholly and exclusively' incurred in earning your income. This means you used your own money to pay for expenses necessary to your employment such as travel expense, entertainment expense, subscriptions, etc.

Please refer to Employment Expenses for more details.

Deductions for Sole-Proprietors, and Self-Employed Individuals or Partners in a Partnership

Deductions on Rental Expenses

You may be able to claim tax deduction on expenses related to rental income derived in Singapore when:

  1. The expense was incurrred solely for the purpose of producing the rental income; and
  2. The expense was incurred during the period of tenancy.

Please refer to Rent from Property for more details.

Deductions on Donations

You may be able to claim tax deduction on 2.5 / 3 times the amount of donations made from 2009 to 2018:

  1. Cash Donations
  2. Shares Donations
  3. Computer Donations
  4. Artefact Donations
  5. Public Art Tax Incentive Scheme
  6. Land and Building Donations

Please refer to Donations for more details.

Deductions under Angel Investors Tax Deduction Scheme (AITD)

You may claim tax deduction when:

  1. You have invested in qualifying start-up companies between 1 Mar 2010 to 31 Mar 2020;
  2. You invested  at least $100,000  of qualifying investment in a qualifying start-up company within 12 months from the date of your first investment in that company; and
  3. You hold such investment for a continuous period of 2 years from the date of last qualifying investment.

Please refer to Angel Investors Tax Deduction Scheme (AITD) for more details.

Reliefs and Rebates for Tax Residents

Personal Income Tax Relief Cap

New! From YA 2018, the total amount of personal income tax reliefs an individual taxpayer can claim is subject to an overall relief cap of $80,000 per YA. More details will be released by Jun 2016. 

Relief for Non-Residents (Section 40 Relief)

This is a special relief to reduce the overall taxes of certain categories of non-residents such as:

  • A non-resident Singapore Citizen; or
  • A non-resident deriving pension income from Singapore; or
  • A non-resident residing in the Netherlands (where reciprocal relief is provided under the Singapore-Netherlands Tax Treaty).

Indicate your claim for Section 40 Relief by crossing the box in your Form M. The Section 40 Relief will be computed automatically for you.

From Year of Assessment 2016

It was announced in Budget 2014 that, to simplify the individual income tax system, the Section 40 Relief will no longer be available with effect from Year of Assessment 2016. 

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