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Basic Tax Calculator (BTC) Introduction

This Basic Tax Calculator (BTC) is to help trading companies calculate their tax contributions for the Year of Assessment 2010. The BTC comes with a main tax computation and commonly used supporting schedules (eg. rental income, interest adjustment, medical expense restriction, renovation and refurbishment expenses and capital allowances schedules). Do not use the BTC if a) you are an investment holding company. Please click the following link for the relevant template of an investment holding company:
Basic Format of Tax Computation for An Investment Holding Company

b) you are claiming group relief or investment allowance; c) you have income taxable at concessionary tax rates; or d) your accounts are prepared in functional currency other than Singapore dollars. Before you start, click the READ ME! button below for some quick tips. READ ME! Disclaimer: This BTC works out the tax contribution based on the information you have entered. It does not check the accuracy or completeness of the information entered.

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Using the Basic Tax Calculator (BTC)


1. 2. 3. 4. 5. Get ready the company's accounts and other necessary information before you start. Enter data (where necessary) in the yellow boxes. A red asterik (*) means it is compulsory to enter data in these yellow boxes. This icon i means you can click on it to get more information on a particular item. Using the navigation buttons: Description of button Click this button to go to a specified location.

Navigation button
GO TO xxx

TRIM, PREVIEW & PRINT CURRENT PAGE

Click this button to trim, preview & print the current page.

PREVIEW & PRINT ALL SCHEDULES

Click this button to preview & print all schedules.


Note: (1) Tax computation and Interest adjustment schedule will be trimmed. (2) Preview of each schedule will take a few seconds.

To start using the tax calculator, click the START button now.

START

COMPANY'S PARTICULARS
Name of Company* Tax Reference No.* Year of Assessment* i If the company is claiming tax exemption for new start-up companies, please state its 1st Year of Assessment upon incorporation (If the company is not claiming tax exemption for start-ups, leave the yellow box empty.)
GO TO TAX COMPUTATION

* Compulsory field to complete

TAX COMPUTATION FOR TRADING COMPANY


Name of Company: Tax Reference: Year of Assessment:
Items to be entered in Form C (relevant line no. in Form C)

S$

S$

Net profit / (loss) before taxation as per accounts Less: Income from separate source / Non-taxable income Dividend Interest Rental Profit on sale of fixed assets Foreign exchange gain on non-trade or capital transactions Foreign-sourced income exemption (FSIE) Others (please specify):

Add: Disallowable expenses Amortisation Bad debts (non-trade) Club membership - entrance fees Depreciation Donation Expenses incurred in earning rental income Fixed assets written off Foreign exchange loss on non-trade or capital transactions Goodwill payment Income tax Installation of equipment or assets Interest adjustment (Click here to enter details and calculate the interest adjustment) Legal or professional fees relating to loan arrangement / increase in share capital Loss on sale of fixed assets Medical expenses (Click here to enter details and calculate any disallowable medical expense) Motor vehicle expenses applicable to S-plate cars

Motor vehicle expenses applicable to Q-plate cars with COE registered on or after 01.04.1998 i Penalties and fines Provision for bad and doubtful debts (general) Provision for obsolete stocks (general) Others (please specify):

Adjusted profit / (loss) before capital allowance Less: Section 14Q for Expenditure on Renovation or Refurbishment Works (R&R costs) (click here to enter details of R&R claim) Less: Unutilised capital allowances brought forward Capital allowances for current YA (Click here to enter details of capital allowance claim) Adjusted profit / (loss) after capital allowance Less: Unutilised losses brought forward Adjusted profit / (loss) after capital allowance and unutilised loss b/f Add: Other income Dividend - Foreign countries (Gross) Interest Net rental income (Click here to enter details and calculate the net rental income) Others (please specify):

22b 24b 1a

2 1b 1d

1c, 1e, 1f or 2 -

Sub-total 1 Add: Current year tax adjusted loss converted to R&D Cash Grant

3 4

Less: Unutilised donations brought forward Donations to approved institutions of public character Sub-total 2 Less: Current year capital allowances carried back to preceding YA Sub-total 3 26b 5 6

8a

Less: Current year losses carried back to preceding YA Sub-total 4 Less: Capital allowances/ losses claimed under the carry-back system Sub-total 5 Chargeable Income (before exempt amount) Less: Exempt amount Chargeable Income (after exempt amount) Tax @ 17% Less: Double taxation relief Less: Tax deducted at source Net tax payable / (repayable) Less: Tax previously assessed Additional tax payable / (tax discharged) Summary of unutilised items carried forward (if any): Unutilised capital allowances c/f Unutilised losses c/f Unutilised donations c/f

16a 17a or 17b 18a & 18c 12 & 14

23b 25b 27b

RENTAL INCOME SCHEDULE


Name of Company: Tax Reference: Year of Assessment: Please read before using: 1 Enter the total amount of rental income and expenses from all properties in this schedule. The information entered will be used to calculate the taxable rental income in the "Tax Computation" template. If the company earns rental income from more than 1 property, please provide the details of each property by using copies of this schedule. When entering data into this schedule, please enter only the total income/expenses.

Address of property rented out: Period of rental in basis period: Vacant period, if any: S$ Gross rental income Less: expenses incurred Property tax Insurance Repairs and maintenance Interest expenses Agent's commission Others, please specify: S$

Net rental income / (loss)

INTEREST ADJUSTMENT SCHEDULE


Name of Company: Tax Reference: Year of Assessment: Non-Income Producing Assets Investment - subsidiaries Investment - associated companies Investment - others Amount owing by subsidiaries (non-trade) Amount owing by associated company (non-trade) Amount owing by related companies (non-trade) Other debtor(s) Others Total Total Assets Investment - subsidiaries Investment - associated companies Investment - others Fixed assets Current assets Provision for stock obsolescence Club membership Others Total Interest Expense Loan interest Overdraft interest Bank interest Others Total Interest on non-income producing assets x =

MEDICAL EXPENSE SCHEDULE


Name of Company: Tax Reference: Year of Assessment: Please complete the following by selecting Yes or No from the box: a. Is the company claiming medical expenses in excess of 1% of total employees' remuneration? b. If yes, has the company met the qualifying conditions ? i

Total remuneration Employees' salaries, allowance and bonuses Directors' remuneration (excluding directors' fees) CPF contributions Others, please specify:

Total Computation of disallowable medical expense: 1% of total remuneration Total medical expenses Amount disallowed

0 0

RENOVATION & REFURBISHMENT WORKS (R&R COSTS) SCHEDULE


Name of Company: Tax Reference: Year of Assessment:

Items qualifying as renovation & refurbishment costs


Date (dd/mm/yyyy) Description of Renovation & Refurbishment Works

Total R&R Costs


Qualifying R&R Costs for YA2010 R&R Claim for YA2010

DEDUCTION CLAIMED UNDER SECTION 14Q


Original qualifying R&R costs incurred S14Q deduction claim ($) -

YA 2010 2009

R&R costs b/f ($) -

R&R costs c/f ($) -

No. of years remaining

S14Q deduction

By completing this schedule, I confirm that the above items do not require the approval of the Commissioner of Building Control. Note: The deduction is subject to an expenditure cap of $150,000 for every 3-year period.

OSTS) SCHEDULE

Amount ($)

oval of the Commissioner of Building

CAPITAL ALLOWANCE SCHEDULE FOR NEW ASSETS


Name of Company: Tax Reference: Year of Assessment:
Please read before using:

1. This schedule is meant for entering details of new assets on which you wish to claim capital allowance. If the new asset is under hire purchase, please click the button below to enter details of the asset.
GO TO "CAPITAL ALLOWANCE NEW (HP)"

2. If you wish to defer the capital allowance claim on the new asset, please select "Deferred" from the dropdown list at No. 2 (i.e. number of years). 3. Please fill in the yellow boxes below for each new asset that you are claiming capital allowance or deferring the assets (e.g if you are claiming for 5 new assets, you need to key in the details 5 times). 4. After entering the details for each asset, please click on the "Enter" button before continuing to key in a new set of values for the next asset. 5. The information will be auto-populated over to the "Capital Allowance Summary".

1) Choose the category of fixed asset for which you are claiming capital allowance

2) Choose the number of years over which you are claiming capital allowance

i
3) Fill in the cost of the fixed asset

4) Click this button after entering the information for each fixed asset

ENTER

GO TO TAX COMPUTATION

GO TO CAPITAL ALLOWANCE

SCHEDULE FOR NEW ASSETS UNDER HIRE-PURCHASE


Name of Company: Tax Reference: Year of Assessment: Assets Under Hire Purchase Terms (HP) Description of assets Number of years of working life

i Year of Assessment Amount Year of Assessment Amount Year of Assessment Amount Year of Assessment Amount Year of Assessment Amount

Cost of asset Total principal amount paid per financial year (including downpayment, if any, and excluding interest) First year Second year Third year Fourth year Fifth year
GO TO "CAPITAL ALLOWANCE NEW" GO TO CAPITAL ALLOWANCE

GO TO TAX COMPUTATION

GO TO NOTES

Year of Assessment

Amount

Year of Assessment

Amount

Year of Assessment

Amount

Year of Assessment

Amount

Year of Assessment

Amount

CAPITAL ALLOWANCE SUMMARY


Name of Company: Tax Reference: Year of Assessment: Principal paid during the Tax written year (excluding interest, down value including downpayment) b/f

Description of Asset

YA of purchase

No. of years of working life b/f

Cost

IA

AA

Tax written down value c/f

No. of years of working life c/f

Additions during the year (non-HP assets) [Details from Capital Allowance Schedule for New Assets]

Existing Assets (non-HP)

Additions during the year (HP assets) [Details from Schedule for New assets under Hire-purchase]

Existing Assets (HP)

Capital allowance claimed Disposals during the year YA of purchase No. of years of working life Tax written down value Sales Proceeds b/f

BA / (BC)

Description of Asset

Cost

Total BA/(BC)

Total Capital allowances

Explanatory Notes
AGENT'S COMMISSION

CAPITAL ALLOWANCES No. Of Years Over Which Capital Allowances May Be Claimed

For more information on capital allowances, please refer to the our website on:
"Capital Allowance (CA)"

* 100% write-off over 1 year for small assets that cost no more than $1,000 each

Accelerated Write-Down

CARRY-BACK OF CAPITAL ALLOWANCES / LOSSES

"Reference No. 2009/IT/1 ~ Date of Publication 23/01/09 : Enhanced Carry-Back Relief System"

Cessation Of Business

Unutilised Section 14Q Deduction

For examples on how to compute Section 14Q deduction, please refer to IRAS e-Tax Guide :

DIVIDEND - SINGAPORE

For more information on one-tier exempt dividends, please refer to our website on:
"One-tier corporate tax system vs imputation system"

DONATIONS

For more information on donations, please refer to our website on:


"Charities/IPCs"

DOUBLE TAXATION RELIEF (DTR)

For more information on DTR, please refer to our website on:


"Claiming Double Taxation Relief"

Back to Tax Computation

EXPENSES INCURRED IN EARNING RENTAL INCOME

FOREIGN EXCHANGE GAINS / LOSSES The following concession was granted to taxpayers with effect from YA 2004:

For more details, please refer to the IRAS e-Tax Guide:

FOREIGN-SOURCED INCOME EXEMPTION (FSIE)

For more details, please refer to IRAS e-Tax Guide:

"Declaration Form for Foreign-Sourced Income Received in Singapore From 22 Jan 2009 to 21 Jan 2010"

INTEREST RESTRICTION

Interest expenses relating to non-income producing assets are not deductible for income tax purposes.

For more information on interest adjustment, please refer to the our website on:
"Interest Adjustment"

MEDICAL EXPENSES

For more details on the schemes and the qualifying conditions, please refer to the MOM website:
http://www.mom.gov.sg/publish/momportal/en/home.html

NET PROFIT / (LOSS) BEFORE TAXATION AS PER ACCOUNTS For "Net Loss", please enter minus sign (-) in front of the loss figure. E.g. if net loss is $690, enter "-690".

NET RENTAL INCOME / LOSS

If there is a net rental deficit, this deficit will be disregarded.

NOT DEDUCTIBLE EXPENSES

For more information on what is deductible and what is not deductible, please refer to our website on:
"Business Expenses"

PARTIAL TAX EXEMPTION

The tax exemption for companies on chargeable income of up to $300,000 is as follows: First $10,000 @ 75% = $ 7,500 Next $290,000 @ 50% = $145,000 Total $300,000 $152,500

PROVISION FOR BAD AND DOUBTFUL DEBTS (GENERAL)

For more details, please refer to our website on:


Impairment loss on trade debts

and IRAS e-Tax Guide:

RESEARCH & DEVELOPMENT (R&D) EXPENDITURE The following R&D tax schemes were introduced in Budget 2008: a) Liberalised R&D tax deductions b) R&D tax allowance; and c) R&D incentive for start-up enterprises or R&D cash grant For more details, please refer to IRAS e-Tax Guide:
"Reference No. 2008/IT/9 ~ Date of Publication 12/12/08 : Research & Development Tax Measures"

TAX EXEMPTION FOR NEW START-UP COMPANIES

The tax exemption for new start-up companies on chargeable income of up to $300,000 is as follows: First $100,000 @ 100% = $100,000 Next $200,000 @ 50% = $100,000 Total $300,000 $200,000 What are the qualifying conditions? a) b) The company must be incorporated in Singapore; The company must not be a company limited by guarantee*;

c) d) (i)

The company must be a tax resident for that YA of claim; and The company must not have more than 20 shareholders throughout the basis period for that YA where: all of the shareholders are individual beneficially and directly holding the shares in their own names; or

To qualify for the exemption prior to YA 2009 (i.e. from YA 2005 to YA 2008), a company must: a) be incorporated in Singapore; b) not be a company limited by guarantee; c) be a tax resident for that YA of claim; and

What is the first YA of a qualifying company?

For more information on this tax exemption scheme, please refer to our website on:
Tax Exemption scheme for new start-up companies.

UNUTILISED CAPITAL ALLOWANCES

For more information on the shareholdings test, please refer to our website on:
"How to determine whether there is a substantial change in the shareholders?"

UNUTILISED DONATIONS

For more information on the shareholdings test, please refer to our website on:
"How to determine whether there is a substantial change in the shareholders?"

UNUTILISED LOSSES

For more information on the shareholdings test, please refer to our website on:
"How to determine whether there is a substantial change in the shareholders?"

Explanatory Notes
AGENT'S COMMISSION Agent's commission incurred to secure the first tenant for the company's first property rented out is not tax
GO TO RENTAL INCOME SCHEDULE

CAPITAL ALLOWANCES No. Of Years Over Which Capital Allowances May Be Claimed Description of Asset Computers Furniture & Fittings Plant & Machinery Motor Vehicles - Vans Motor Vehicles - Lorries/Trucks Number of Years 1 year 3 years* 3 years* 3 years or prescribed lifespan 6 years 3 years

For more information on capital allowances, please refer to the our website on:
"Capital Allowance (CA)"

* 100% write-off over 1 year for small assets that cost no more than $1,000 each With effect from Year of Assessment (YA) 2005, for assets qualifying for capital allowance claim over 3 years, the company may choose to claim capital allowance on the full cost of these assets over 1 year instead. This is provided that the cost of each asset is no more than $1,000 and the aggregate claim for 100% write-off of all such assets is capped at no more than $30,000 per YA. For more details, please refer to IRAS e-Tax Guide:
Reference No. 2004/IT/11 ~ Date of Publication 19/08/2004 : Simplification of Income Tax Rules and Procedures - 100% Capital Allowance For Items Of Machinery Or Plant Costing No More Than $1,000 Each

Accelerated Write-Down As announced in the 2009 Budget Statement, capital expenditure incurred on plant and machinery acquired in the basis periods for the YAs 2010 and 2011 can be allowed an accelerated write-down over two years instead of three years. With this change, companies can write-down the costs of these newly acquired plants and machinery within two years with 75% of the write-down taking place in the first year of capital allowance claim alone.
GO TO TAX COMPUTATION GO TO "CAPITAL ALLOWANCENEW" GO TO "CAPITAL ALLOWANCENEW (HP)"

CARRY-BACK OF CAPITAL ALLOWANCES / LOSSES For the YAs 2009 and 2010, a person carrying on a trade, business, profession or vocation may carry back qualifying deductions of up to $200,000 for a YA of loss to set-off against his assessable income for up to 3 YAs immediately preceding the YA of loss. For more details, please refer to IRAS e-Tax Guide:
"Reference No. 2009/IT/1 ~ Date of Publication 23/01/09 : Enhanced Carry-Back Relief System"

GO TO TAX COMPUTATION

DEDUCTION CLAIMED UNDER SECTION 14Q FOR EXPENDITURE ON RENOVATION OR REFURBISHMENT WORKS (R&R COSTS) A tax deduction is allowed on qualifying R&R costs incurred during the period 16 Feb 2008 to 15 Feb 2013 on renovating or refurbishing business premises. Generally, all R&R costs would qualify except those relating to structural changes that require approval from the Commissioner of Building Control. Under Section 14Q, the amount of R&R costs that will qualify for tax deduction is subject to an expenditure cap of $150,000 for every relevant three-year period, starting from the year in which the R&R costs were incurred and a deduction is claimed by the company. Section 14Q deduction must be claimed over three consecutive YAs, starting from the YA relating to the basis period in which the R&R costs were first incurred (i.e 1/3 of the R&R costs can be claimed each YA over the three consecutive YAs). However, companies that incur qualifying R&R expenses in the basis periods for YA 2010 can claim such expenses over one year instead of over three years. Any amount of qualifying R&R costs, which are not claimed in the YA relating to the basis period in which they were first incurred, will not qualify for deduction in Cessation Of Business If your company permanently ceases business in any of the three YAs, it will not be allowed a deduction on the balance of the R&R costs. Unutilised Section 14Q Deduction Any amount of Section 14Q deduction that could not be fully utilised will form part of the adjusted trade loss of the company. However, the unutilised Section 14Q deduction cannot be transferred under the group relief system. The adjusted trade loss (after deducting Section 14Q deduction) can be offset against other income of the company. The amount of unutilised trade losses, if any can be: - carried forward to offset against the companys assessable income for future YAs if there is no substantial change in the shareholders and their shareholdings; or - carried back to the immediate preceding YA to be offset against the assessable income under the loss carry-back For examples on how to compute Section 14Q deduction, please refer to IRAS e-Tax Guide :
Reference No. 2008/IT/3 ~ Date of Publication 18/06/08 : Deduction For Expenditure Incurred on Renovation or Refurbishment Works
GO TO TAX COMPUTATION GO TO R&R COST SCHEDULE

DIVIDEND - SINGAPORE You do not need to include one-tier exempt dividends as they are tax exempt. Note: All Singapore dividends paid on or after 1 Jan 2008 are exempt dividends. For more information on one-tier exempt dividends, please refer to our website on:
"One-tier corporate tax system vs imputation system"

GO TO TAX COMPUTATION

DONATIONS For donations made to approved Institutions of a Public Character (IPCs) and other approved recipients, donors are given double tax deduction for donations made to these organisations which benefit the local community. However, in the year 2009 (i.e. 1 Jan 2009 to 31 Dec 2009), tax deduction will be enhanced to 2.5 times of the amount or value of the approved donations. In your claim, enter 2.5 times the amount of donations made. Claims for donations must be supported with original receipts issued by the IPCs or other approved recipients bearing the words Tax-Deductible. This is unless the For more information on donations, please refer to our website on:
"Charities/IPCs"

If the donations or gifts are for a "foreign charitable purpose", they are not tax deductible even though they are made to an approved IPC.
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DOUBLE TAXATION RELIEF (DTR) The company must satisfy all of the following conditions in order to qualify for a claim for a DTR: a. The company is a tax resident in Singapore for the relevant basis year; b. Tax has been paid or is payable on the same income in the foreign country in accordance with the provisions of the Double Taxation Agreement; and c. The income is subject to taxation in Singapore. The amount of DTR that may be claimed is the lower of: (i) the amount of Singapore tax attributable to the foreign income (net of expenses); or (ii) the actual amount of foreign tax paid. For more information on DTR, please refer to our website on:
"Claiming Double Taxation Relief"
GO TO TAX COMPUTATION

Back to Tax Computation

EXPENSES INCURRED IN EARNING RENTAL INCOME Expenses relating to a vacant property are not tax deductible. If the property is only rented out for a portion of a year, the expenses relating to the vacant period should not be included in the yellow boxes under "Expenses incurred".
GO TO RENTAL INCOME SCHEDULE

FOREIGN EXCHANGE GAINS / LOSSES The following concession was granted to taxpayers with effect from YA 2004: Foreign exchange gains or losses recognised in the profit and loss account and identified to be revenue in nature will be taxable or tax deductible respectively notwithstanding that there is no physical conversion of foreign If the taxpayers have opted out of the above concessions in YA 2004, the established principle of taxation for foreign exchange gains or losses would apply i.e. foreign exchange gains or losses on revenue account are not taxable or allowable for income tax purposes until there is physical conversion of the foreign currencies into the functional For foreign exchange gains or losses of a capital nature and those arising from the translation of financial statements prepared in the businesses' non-S$ functional currencies into S$ merely for presentation purposes, they remain not taxable or allowable respectively for income tax purposes. For more details, please ~ Date the IRAS e-Tax Guide: "Reference No. 2003/IT/14 refer toof Publication 28/11/2003 : Income Tax Treatment of Foreign Exchange Gains or Losses for Businesses"
GO TO TAX COMPUTATION

FOREIGN-SOURCED INCOME EXEMPTION (FSIE) All foreign-sourced income accruing on or before 21 Jan 2009 and received in Singapore by companies resident in Singapore from 22 Jan 2009 to 21 Jan 2010 can qualify for income tax exemption under the FSIE Scheme. For more details, please refer to IRAS e-Tax Guide:
"Reference No. 2009/IT/3 ~ Date of Publication 20/2/2009 : Temporary Liberalisation of Income Tax Exemption for ForeignSourced Income Received in Singapore from 22 Jan 2009 to 21 Jan 2010"

Companies claiming for exemption under the temporarily liberalised FSIE Scheme are required to submit the declaration form for foreign-sourced income received in Singapore from 22 Jan 2009 to 21 Jan 2010 together with Form C. Please click on the link below to download the declaration form:
"Declaration Form for Foreign-Sourced Income Received in Singapore From 22 Jan 2009 to 21 Jan 2010"
GO TO TAX COMPUTATION

INTEREST RESTRICTION

Interest expenses relating to non-income producing assets are not deductible for income tax purposes. As such, you have to make interest adjustments in your tax computation if there are any interest expenses applicable to non-income producing assets. For more information on interest adjustment, please refer to the our website on:
"Interest Adjustment"
GO TO TAX COMPUTATION

MEDICAL EXPENSES With effect from YA 2008, in recognition that employers' provision of portable medical shield plans or ad-hoc contributions to the Medisave accounts of employees achieve the same objective as the Portable Medical Benefits Scheme (PMBS) and Transferable Medical Insurance Scheme (TMIS), your company will be granted a tax deduction of up to 2% of the total employees' remuneration if your company: 1. has provided your employees with inpatient medical insurance benefits in the form of portable medical shield plans (but the deduction will exclude premiums for riders that cover deductibles and co-payments); or 2. has made ad-hoc contributions to your employees' Medisave accounts (subject to a cap of $1,500 per employee per year) during the relevant basis period. Tax deduction will remain capped at 1% of total remuneration if your company is not on PMBS/TMIS or does not provide medical shield plans or make ad-hoc medisave contributions for your employees. For more details on the schemes and the qualifying conditions, please refer to the MOM website:
http://www.mom.gov.sg/publish/momportal/en/home.html Select Workplace Relations and Standards->Good Employment Practices->Guidelines on Employment Issues->Implement Portable Medical Benefits and Enjoy Higher Tax Deduction For Medical Expenses."

The amount of total remuneration includes employees salaries, allowances, bonuses, directors remuneration, CPF contributions deductible under the Act etc. It however excludes directors fees, medical expenses, cash allowances in lieu of medical expenses and benefits-in-kind.
GO TO TAX COMPUTATION GO TO MEDICAL EXPENSE SCHEDULE

NET PROFIT / (LOSS) BEFORE TAXATION AS PER ACCOUNTS For "Net Loss", please enter minus sign (-) in front of the loss figure. E.g. if net loss is $690, enter "-690".
GO TO TAX COMPUTATION

NET RENTAL INCOME / LOSS

If there is a net rental deficit, this deficit will be disregarded.


GO TO RENTAL INCOME SCHEDULE

NOT DEDUCTIBLE EXPENSES Generally, an expense will not be deductible if it is: a) prohibited under the Income Tax Act; b) capital in nature; or c) a contingent liability. For more information on what is deductible and what is not deductible, please refer to our website on:
"Business Expenses"
GO TO TAX COMPUTATION

PARTIAL TAX EXEMPTION Companies that do not qualify for the Tax Exemption Scheme for New Start-up Companies will enjoy a partial tax exemption on the first $300,000 of their normal chargeable income. The tax exemption for companies on chargeable income of up to $300,000 is as follows: First $10,000 @ 75% = $ 7,500 Next $290,000 @ 50% = $145,000 Total $300,000 $152,500
GO TO COMPANY'S PARTICULARS GO TO TAX COMPUTATION

PROVISION FOR BAD AND DOUBTFUL DEBTS (GENERAL) With effect from 1st January 2005, companies with annual periods beginning on or after 1st January 2005 have to comply with Financial Reporting Standard 39 (FRS 39) - Financial Instruments: Recognition and Measurement for With the adoption of the FRS 39 for accounting purposes, companies will now have to reflect their financial assets and liabilities at market value in their financial statements. Any impairment losses incurred to reflect the assets at market value will be transferred to the profit and loss account. With the adoption of the FRS 39 for accounting purposes, the income tax treatment of financial assets and liabilities has been changed and is referred to as the "FRS 39 tax treatment". Specifically for accounts receivables on revenue account, impairment losses incurred under FRS 39 will be allowed as a tax deduction under the FRS 39 tax treatment.

The FRS 39 tax treatment will be the default tax treatment for all taxpayers that adopt FRS 39 for accounting purposes. However, a taxpayer can elect in writing to remain on the current tax treatment (pre-FRS 39 tax For taxpayers that do not need to comply with FRS 39 for accounting purposes or companies that are temporarily exempt by ACRA from complying with FRS 39 for accounting purposes, the pre-FRS 39 tax treatment continues to apply. Therefore, for taxpayers who elect to remain on pre-FRS 39 tax treatment or who do not need to comply with FRS 39 for accounting purposes, the pre-FRS 39 tax treatment will continue to apply and general provisions for bad and doubtful debts will not be tax deductible. For more details, please refer to our website on:
Impairment loss on trade debts

and IRAS e-Tax Guide:


"Reference No. 2005/IT/6 ~ Date of Publication 30/12/05 : Income Tax Implications Arising From the Adoption of FRS 39 Financial Instruments: Recognition & Measurement"
GO TO TAX COMPUTATION

RESEARCH & DEVELOPMENT (R&D) EXPENDITURE The following R&D tax schemes were introduced in Budget 2008: a) Liberalised R&D tax deductions b) R&D tax allowance; and c) R&D incentive for start-up enterprises or R&D cash grant For more details, please refer to IRAS e-Tax Guide:
"Reference No. 2008/IT/9 ~ Date of Publication 12/12/08 : Research & Development Tax Measures"
GO TO TAX COMPUTATION

TAX EXEMPTION FOR NEW START-UP COMPANIES Since Year of Assessment (YA) 2005, a company that meets the qualifying conditions would be granted full tax exemption on its normal chargeable income of up to $100,000 for any of the companys first 3 consecutive YAs. Starting from YA 2008, a further 50% exemption is given on the next $200,000 on a qualifying company's normal chargeable income (excluding Singapore franked dividends). The tax exemption for new start-up companies on chargeable income of up to $300,000 is as follows: First $100,000 @ 100% = $100,000 Next $200,000 @ 50% = $100,000 Total $300,000 $200,000 What are the qualifying conditions? for the Tax Exemption Scheme for New Start-up Companies have been From YA 2009, the qualifying conditions revised as follows: a) The company must be incorporated in Singapore; b) The company must not be a company limited by guarantee*;

c) The company must be a tax resident for that YA of claim; and d) The company must not have more than 20 shareholders throughout the basis period for that YA where: (i) all of the shareholders are individual beneficially and directly holding the shares in their own names; or (ii) at least one of the shareholder is an individual beneficially and directly holding at least 10% of the issued ordinary shares of the company. * With effect from YA 2010, the scheme will be extended to companies limited by guarantee, subject to the same conditions imposed on companies limited by shares. To qualify for the exemption prior to YA 2009 (i.e. from YA 2005 to YA 2008), a company must: a) be incorporated in Singapore; b) not be a company limited by guarantee; c) be a tax resident for that YA of claim; and d) have its total share capital beneficially held, directly or indirectly, by no more than 20 individuals throughout the basis period relating to that YA. As an administrative concession, a company that had enjoyed the scheme prior to YA 2009 will continue to qualify for the exemption for the remaining tenure of the scheme if the previous set of conditions for YA 2005 to 2008 is still met. This is a transitional measure to ensure a smooth transition to the new conditions from YA 2009 onwards. For more information and example on the administrative concession, please visit our website under For companies > Guide for new companies > Tax exemption scheme for new start-up companies. What is the first YA of a qualifying company? The first YA of a qualifying company refers to the YA relating to the basis period during which the company is incorporated. For example, a company was incorporated on 15 Apr 2007 and its first set of accounts closed on 30 Jun 2008. Hence, the companys first YA would be YA 2008 (basis period is 15 Apr 2007 to 30 Jun 2007). The company should fill in 2008 in the box under The companys first YA upon incorporation For more information on this tax exemption scheme, please refer to our website on:
Tax Exemption scheme for new start-up companies.
GO TO COMPANY'S PARTICULARS

UNUTILISED CAPITAL ALLOWANCES A company can use the unutilised capital allowances brought forward from previous years of assessment if they satisfy the following 2 conditions: (i) There is no substantial change in its ultimate shareholders and their shareholdings as at the relevant dates (known as the shareholding test); (ii) There is no change in the company's principal activities. For more information on the shareholdings test, please refer to our website on:
"How to determine whether there is a substantial change in the shareholders?"
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COMPUTATION

UNUTILISED DONATIONS With effect from YA 2003, any unutilised donations can be carried forward to be set-off against the income of the company for subsequent years, up to a maximum of 5 years. Any unutilised donations brought forward from YA 2004 and before will be disregarded in YA 2010. A company can use the unutilised donations brought forward from previous years of assessment provided there is no substantial change in its shareholders and their shareholdings as at the relevant dates (known as the For more information on the shareholdings test, please refer to our website on:
"How to determine whether there is a substantial change in the shareholders?"
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UNUTILISED LOSSES A company can use the unutilised losses brought forward from previous years of assessment provided there is no substantial change in its shareholders and their shareholdings as at the relevant dates (known as the shareholding For more information on the shareholdings test, please refer to our website on:
"How to determine whether there is a substantial change in the shareholders?"
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