Basic Tax Calculator (BTC)

(for Companies Filing Form C-S)

List of Contents
Introduction
Using the Basic Tax Calculator
Company's Particulars
Tax Computation
Supporting Schedules
Rental Income
Interest Adjustment
Medical Expense
Renovation & Refurbishment Works (R&R Costs)
Capital Allowance
- Capital Allowance for New Assets
- Capital Allowance for New Assets under Hire Purchase (HP)
- Capital Allowance (assets acquired under the PIC Scheme)
- Capital Allowance (CA)
- Capital Allowance Summary
Explanatory Notes
hase (HP)
Scheme)
 Basic Tax Calculator (BTC)
(for Companies Filing Form C-S)
Introduction

This Basic Tax Calculator (BTC) is for trading companies filing Form C-S for Year of Assessment (YA) 2
Companies will qualify to file Form C-S if they meet all of the following conditions:
1. The company is incorporated in Singapore;
2. The company has an annual revenue of $5 million or below;
3. The company only derives income taxable at the prevailing corporate tax rate of 17%; and
4. The company is not claiming any of the following in the YA:
a. Carry-back of Current Year Capital Allowances/ Losses
b. Group Relief
c. Investment Allowance
d. Foreign Tax Credit and Tax Deducted at Source

Companies that do not qualify to file Form C-S are required to file Form C.

Find out more from our website on

Filing of Form C-S

To further enhance the e-Filing experience of small companies, companies that qualify to file Form C-S
$200,000 or below have the option to file Form C-S (Lite).

Form C-S (Lite) is a simplified version of Form C-S that requires only six essential fields to be completed
with straight-forward tax matters.

Find out more from our website on

Filing of Form C-S (Lite)

The BTC is to help trading companies prepare their tax computations for YA 2021. It comes with a main
commonly used supporting schedules (rental income, interest adjustment, medical expense restriction, r
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 template of an investm
Basic Format of Tax Computation for An Investment Holding Company
b) you are claiming industrial building allowance (IBA) / land intensification allowance (LIA);
c) your accounts are prepared in a functional currency other than Singapore dollars.

Before you start, click the READ ME! button below for some quick tips.

READ ME!
Disclaimer:
The calculator is correct as of 30 Apr 2021. Please check the IRAS website at www.iras.gov.sg for the
provides only estimates based on the stated assumptions and your inputs. It may not provide for all pos
Assessment (YA) 2021.

%; and

y to file Form C-S and have an annual revenue of

ds to be completed and is suitable for companies

comes with a main tax computation and

pense restriction, renovation and refurbishment

plate of an investment holding company:

ras.gov.sg for the latest version. The calculator
provide for all possible scenarios.
 Using the Basic Tax Calculator (BTC)
(for Companies Filing Form C-S)
1. Get ready the company's financial statements and other necessary information (e.g.
detailed profit and loss statement, prior year's tax computation, supporting schedules and
the Notice of Assessment for the relevant YAs) before you start.
2. Enter the company's name and tax reference number in the "Company's Particulars" Tab.
(Click here to enter the company's name and tax reference number)
3. Enter data (where necessary) in the yellow boxes.
4. A red asterisk (*) means it is compulsory to enter data in these yellow boxes.
5. Cick on i to get more information on a particular item.
6. Using the navigation buttons:

Navigation button Description of button

GO TO xxx Click this button to go to a specified location.

TRIM,
TRIM, PREVIEW
PREVIEW &
&
PRINT CURRENT
Click this button to trim, preview & print the current page.
PAGE
PAGE Click this button to preview & print all schedules.

PREVIEW &
PRINT
PRINT ALL
ALL Note: (1) Tax computation and all other supporting schedules will be trimmed.
SCHEDULES (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 2021

i If the company is claiming tax exemption for new start-up companies, please select its
1st Year of Assessment upon incorporation
(If the company is not claiming tax exemption for start-ups, leave the yellow box empty.)

GO
GO TO
TO TAX
TAX
COMPUTATION
TAX COMPUTATION FOR TRADING COMPANY

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

S$ S$
i Net Profit / (Loss) before Tax as per Financial Statements

Less: Separate Source Income (Click here to Expand / Collapse Separate Source Income)

Interest Income
Rental Income
Others (please specify):
(Click here first if Additional Row is required for 'Others')

-
-
Less: Non-Taxable Income (Click here to Expand / Collapse Non-Taxable Income)

i One-tier dividend
Gain on disposal of fixed assets
i Foreign exchange gain on non-trade or capital transactions
i Foreign-sourced income exemption (FSIE)
Others (please specify):
(Click
(Click here
here first
first if
if Additional
Additional Row
Row is
is required
required for
for 'Others')
'Others')

-
-
Add: Non-Tax Deductible Expenses (Click here to Expand / Collapse Non-Tax Deductible Expenses)
Depreciation
Loss on disposal of fixed assets
i Medical expenses
TAX COMPUTATION FOR TRADING COMPANY

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

(Click here to enter details and calculate any disallowable medical expense)
Motor vehicle expenses applicable to S-plate cars
Penalties and fines
Amortisation
Bad debts (non-trade)
Club membership - entrance fees
Donation
Expenses incurred in earning rental income
Fixed assets written off
i Foreign exchange loss on non-trade or capital transactions
Goodwill payment
Income tax
Installation of equipment or assets
i Interest adjustment
(Click here to enter details and calculate the interest adjustment)
Legal or professional fees relating to loan arrangement / increase in share capital
Motor vehicle expenses applicable to Q-plate cars with COE registered on or after 01.04.1998
i Impairment for credit-impaired financial instruments
Provision for obsolete stocks (general)
i Others (please specify):
(Click here first if Additional Row is required for 'Others')

-
Adjusted Profit / Loss before Other Deductions -

i Less: Deduction for Renovation or Refurbishment Works under Section 14Q -

(Click here to enter details of R&R claim) -

i Add: Deemed Income - Enhanced Allowances under PIC Granted Previously

-
i Less: Further Deductions

Adjusted Profit / (Loss) before Capital Allowances -

TAX COMPUTATION FOR TRADING COMPANY

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

i (Click here to enter details of capital allowance claim)

i Add: Balancing Charge (BC) -
i Less: Unutilised Capital Allowances brought forward
i Current Year Capital Allowances -
i Balancing Allowance (BA) - -

Adjusted Profit / (Loss) after Capital Allowances -

i Less: Unutilised Losses brought forward

Adjusted Profit / (Loss) after Capital Allowances and Unutilised Losses brought forward -

Add: Separate Source Income (Click

(Click here
here to
to Expand
Expand // Collapse
Collapse Separate
Separate Source
Source Income)
Income)
Interest income
Net rental income
(Click here to enter details and calculate the net rental income)
Other income (please specify):
(Click
(Click here
here first
first if
if Additional
Additional Row
Row is
is required
required for
for 'Others')
'Others')

-
Total Income / (Losses) before Donations -

i Less: Unutilised Donations brought forward (Click here to Expand / Collapse Donations)
i Donations to Approved Institutions of Public Character (Enter 2.5 times the
donations made)
-
-
Chargeable Income (before exempt amount) -
i Less: Exempt amount -
Chargeable Income (after exempt amount) -

Tax @ 17% -
Less: Tax Previously Assessed
Additional Tax Payable / (Tax Discharged) -
TAX COMPUTATION FOR TRADING COMPANY

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

Unutilised Capital Allowances c/f -

Unutilised Losses c/f -

Unutilised Donations c/f -

RENTAL INCOME SCHEDULE

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

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.
2 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 rental income/expenses of all the properties.

Address of property rented out:

Period of rental in basis period:

i Vacant period, if any:

S$ S$

Gross rental income

Less: expenses incurred (excluding expenses incurred during the vacant period, if any)
Property tax
Insurance
Repairs and maintenance
Interest expenses
i Agent's commission
Others, please specify:
(Click here first if Additional Row is required for 'Others')

0
i Net rental income 0
 INTEREST ADJUSTMENT SCHEDULE
Name of Company:
Tax Reference No.:
Year of Assessment: 2021

i 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 0

Total Assets
Investment - subsidiaries
Investment - associated companies
Investment - others
Fixed assets
Current assets
Provision for stock obsolescence
Club membership
Others
Total 0

Common Interest Expense

Loan interest
Overdraft interest
Bank interest
Others
Total 0

Interest on non-income producing assets

0 x 0 = -
0
MEDICAL EXPENSE SCHEDULE

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

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:
(Click here first if Additional Row is required for 'Others')

Total 0

Computation of disallowable medical expense:

1% of total remuneration 0
Total medical expenses i
Amount disallowed 0
RENOVATION & REFURBISHMENT WORKS (R&R COSTS) SCHEDULE

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

New items qualifying as renovation & refurbishment costs

(incurred during financial year ending 2020)
(Click
(Click here
here first
first if
if Additional
Additional Row
Row is
is required)
required)
Date (dd/mm/yyyy) Description of Renovation & Refurbishment Works Amount ($)

Total Qualifying R&R Costs 0

No. of YAs of Claim

Note: For qualifying R&R costs incurred during the basis period for YA 2021, companies have the option to claim the
deduction in one YA instead of over three YAs. All other conditions remain the same.

DEDUCTION CLAIMED UNDER SECTION 14Q

Original S14Q deduction claim

qualifying R&R costs ($)
R&R costs b/f R&R costs c/f No. of years
YA incurred ($) ($) Over 3 years Over 1 year ($) remaining
2021 0 0 0 0
2020 0 0 N.A. 0
2019 0 0 N.A. 0

S14Q deduction - 0 0

By completing this schedule, I confirm that the above items do not require the approval of the Commissioner of Building
Control.
End
CAPITAL ALLOWANCE SCHEDULE FOR NEW ASSETS

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

Please read before using:

1. This schedule is 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 -
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 (CA)" tab.

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

0 0

1b) Key in the description of the fixed asset for which you are claiming capital allowance (max 35 characters)

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

3) Fill in the cost of the fixed asset

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

ENTER
CAPITAL ALLOWANCE SCHEDULE FOR NEW ASSETS UNDER HIRE PURCHASE

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

Assets Under Hire Purchase Terms (HP)

Description of assets
Number of years of working life

Cost of asset
Total principal amount paid per financial year Year of Amount Year of Amount Year of Amount Year of Amount Year of Amount
(including downpayment, if any, and Assessment Assessment Assessment Assessment Assessment
excluding interest)
First year
Second year
Third year
Fourth year
Fifth year
CAPITAL ALLOWANCE SCHEDULE
UNDER
FORHIRE-PURCHASE
NEW ASSETS UNDER HIRE PURCHASE

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

Assets Under Hire Purchase Terms (HP)

Description of assets
Number of years of working life

Cost of asset
Total principal amount paid per financial year Year of Amount Year of Amount Year of Amount Year of Amount Year of Amount
(including downpayment, if any, and Assessment Assessment Assessment Assessment Assessment
excluding interest)
First year
Second year
Third year
Fourth year
Fifth year
PRODUCTIVITY AND INNOVATION CREDIT (PIC)
CAPITAL ALLOWANCE (CA)
This schedule is applicable for assets acquired on or before YA 2018 under the PIC scheme.

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

Initial
Allowance
No. of years Tax written (IA) + Annual Tax written No. of years
Date of purchase YA of of working down value Allowance down value of working
Description of Asset (dd/mm/yyyy) purchase life b/f Cost b/f (AA) c/f life c/f

Existing Assets (non-HP) (Click

(Click here
here first
first if
if Additional
Additional Row
Row is
is required)
required)

Existing Assets (HP) (Click here first if Additional Row is required)

Total 0

Disposals during the year (for assets which the company had previously claimed enhanced capital allowances under PIC) (Click
(Click here
here first
first if
if Additional
Additional Row
Row is
is required)
required)

No. of years Tax written Balancing Balancing

Date of purchase YA of of working down value Sales Allowance Charge
Description of Asset (dd/mm/yyyy) purchase life Cost b/f Proceeds (BA) i (BC) i

Total 0 0

Gain / (Loss) on disposal of asset(s) during the year Net (CA PIC and No PIC) 0
CAPITAL ALLOWANCE (CA)

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

Principal paid during the

No. of years Tax written year (excluding interest, Initial Annual Tax written
YA of of working down value including downpayment) Allowance Allowance down value
Description of Asset purchase life b/f Cost b/f (IA) (AA) c/f

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

Existing Assets (non-HP) (Click

(Click here
here first
first if
if Additional
Additional Row
Row is
is required)
required)

Additions during the year (HP assets) [Details from Schedule for New assets under Hire-purchase]
2021

Existing Assets (HP) (Click

(Click here
here first
first if
if Additional
Additional Row
Row is
is required)
required)

Capital allowance claimed 0 0

CAPITAL ALLOWANCE (CA)

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

Disposals during the year (Click

(Click here
here first
first if
if Additional
Additional Row
Row is
is required)
required)

No. of years Tax written Balancing

YA of of working down value Allowance Balancing
Description of Asset purchase life Cost b/f Sales Proceeds (BA) i Charge (BC)
i

Total 0 0

Gain / (Loss) on disposal of asset(s) during the year

No. of years
of working
life c/f
CAPITAL ALLOWANCE (CA) SUMMARY

Name of Company:
Tax Reference No.:
Year of Assessment: 2021

Total IA and AA per the "CA (assets acquired under PIC)" Worksheet 0
Total IA and AA per the "Capital Allowance (CA)" Worksheet 0
Total Capital Allowances for current YA 0

Total BA per the "CA (assets acquired under PIC)" Worksheet 0

Total BA per the "Capital Allowance (CA)" Worksheet 0
Total BA 0

Total BC per the "CA (assets acquired under PIC)" Worksheet 0

Total BC per the "Capital Allowance (CA)" Worksheet 0
Total BC 0
Explanatory Notes
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
deductible.

GO
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TO RENTAL
RENTAL
INCOME
INCOME SCHEDULE
SCHEDULE

BALANCING ALLOWANCE / BALANCING CHARGE

When a fixed asset is sold or written off, a balancing allowance or balancing charge must be calculated if
capital allowance had been claimed on the asset previously.

a) Balancing Allowance (BA)

A BA, which is tax deductible, arises if the sales proceeds are lower than the tax written down value.

b) Balancing Charge (BC)

A BC, which is taxable, arises if the sales proceeds are higher than the tax written down value. A taxable BC
is restricted to the capital allowance allowed on the asset previously.

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TAX GO
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CA (assets
(assets GO
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CAPITAL
COMPUTATION
COMPUTATION acquired under
acquired under PIC)
PIC) ALLOWANCE (CA)
ALLOWANCE (CA)

CAPITAL ALLOWANCES

No. Of Years Over Which Capital Allowances May Be Claimed

Description of Asset Number of Years

Computers 1 year
Furniture & Fittings 3 years*
Plant & Machinery 3 years*
Motor Vehicles - Vans, Lorries and Trucks 3 years or prescribed lifespan of 6 years

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

*One-Year Write-Off for Low-Value Assets

Companies may choose to claim a one-year write-off on assets costing not more than $5,000 each. The total
claim for a one-year write-off of all such assets should not exceed $30,000 per YA. For more details, please
refer to our website on :
"100% Write-Off in One Year (Section 19A)"

Accelerated Two-Year Write-Off for YA 2021

For qualifying fixed assets acquired in the basis period for YA 2021, companies are given an option to
accelerate the write-off on the cost incurred over 2 years, instead of 3 years or the prescribed working life of
the asset.

The rates of accelerated capital allowance allowed are as follows:

- 75% of the cost incurred to be written off in the first year (i.e. YA 2021); and
- 25% of the cost incurred to be written off in the second year (i.e. YA 2022).
No deferment of capital allowance claim is allowed under this option.

For more details, please refer to our website on:

"Write-Off Over Two Years"

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TAX GO
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TO CAPITAL
CAPITAL GO
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CAPITAL
COMPUTATION
COMPUTATION ALLOWANCE-NEW
ALLOWANCE-NEW ALLOWANCE
ALLOWANCE -- HP
HP
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 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 $300,000 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 in each YA
over the three consecutive YAs). 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 subsequent YAs.

Cessation Of Business
If your company permanently ceases business in any of the three YAs, a deduction will not be allowed on the
balance of the R&R costs.

* Accelerated S14Q Deduction for YA 2021

For qualifying R&R costs incurred during the basis period for YA 2021, companies have the option to claim
the deduction in one YA instead of over three YAs. All other conditions remain the same.

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.

The adjusted trade loss (after deducting Section 14Q deduction) can be set-off against other income of the
company. The amount of unutilised trade losses, if any, can be:
- carried forward to set-off against the company’s assessable income for future YAs, subject to the
shareholding test
- carried back to the immediate preceding YA to set-off against the assessable income under the loss carry-
back relief system, subject to the shareholding test
- transferred under the group relief system from YA 2013, subject to qualifying conditions

For more details, please refer to our website on

"Renovation or Refurbishment Works Expenditure (Section 14Q)"

GO TO TAX GO TO R&R COST

COMPUTATION
COMPUTATION SCHEDULE
SCHEDULE

DEEMED INCOME – ENHANCED ALLOWANCES UNDER PIC GRANTED PREVIOUSLY

Businesses are required to own the Intellectual Property Rights for at least 5 years from the date of
acquisition.

Claw-back provisions will apply to the enhanced allowances if the minimum ownership requirement is not
met. In such cases, the enhanced allowances previously claimed have to be added back to the tax
computation as deemed income.

For more information on the minimum ownership requirement, please refer to our website on:
“Minimum Ownership Period for PIC IT and Automation Equipment and Intellectual Property Rights (IPRs)”

GO TO TAX
COMPUTATION
COMPUTATION
DIVIDEND - SINGAPORE

All Singapore dividends paid are exempt dividends.

GO TO TAX
COMPUTATION
COMPUTATION
DONATIONS

You can claim deduction of 2.5 times the amount of donations made from 1 January 2016 to 31 December
2023, to an approved Institution of a Public Character (IPC) or the Singapore Government which benefits the
local community.

The tax deduction for donations made will be automatically reflected in your YA 2021 assessment based on
information from the IPC. There is no need to enter the donation amount in your Income Tax Return.

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

"Donations and Tax Deductions"

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.

GO TO TAX
COMPUTATION
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".

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TO RENTAL
RENTAL
INCOME
INCOME SCHEDULE
SCHEDULE

FOREIGN EXCHANGE GAINS / LOSSES

Under Section 34AB of the Income Tax Act, businesses no longer need to distinguish between realised and
unrealised revenue foreign exchange differences. All revenue foreign exchange gains or losses will be
taxable or deductible in the year that they are charged to the profit and loss account.

This tax treatment applies automatically to businesses since YA 2004, unless such businesses had opted out
of the tax treatment when submitting the income tax return for YA 2004. Businesses that had previously
opted out of the tax treatment in YA 2004 can now make an irrevocable election to the Comptroller of Income
Tax (CIT) to adopt the tax treatment. The election should be made when the business files its income tax
return. Upon approval by the CIT, such businesses will be allowed to adopt the tax treatment from the YA in
which the election was made, and every subsequent YA.

Foreign exchange differences arising from the translation of financial statements prepared in the functional
currency (e.g. US$) of the business to another currency (e.g. S$) for presentation purpose ("translation
foreign exchange differences") are not taxable or deductible for tax purposes as these are merely notional
gains or losses.

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

"Income Tax Treatment of Foreign Exchange Gains or Losses for Businesses"

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TAX
COMPUTATION
FOREIGN-SOURCED INCOME EXEMPTION (FSIE)

Tax exemption will be granted to a Singapore tax resident company on its specified foreign income* that is
remitted into Singapore, if the qualifying conditions are met.

*The specified foreign income are:

1) Foreign-sourced dividend
2) Foreign branch profits
3) Foreign-sourced service income

For more details and the qualifying conditions, please refer to our website on:
"Tax Exemption of Foreign-Sourced Income"

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TAX
COMPUTATION

FURTHER DEDUCTIONS

Examples of expenditure qualifying for further deductions are:

- expenses relating to approved trade fairs and exhibitions (Section 14B) and expenses relating to overseas investment development (Sect

- research and development expenditure (R&D) (Section 14DA (1) and 14E).

GO TO TAX
COMPUTATION
COMPUTATION

IMPAIRMENT FOR CREDIT-IMPAIRED FINANCIAL INSTRUMENTS

FRS 109 replaces existing FRS 39 and it applies to entities that adopt FRS 109 for annual periods beginning
on or after 1 Jan 2018.

Under the FRS 109, impairment losses recognised in the profit and loss (P&L) in respect of credit-impaired
financial instruments that are on revenue account are allowable as a deduction. Any reversal amount
subsequently recognised in the P&L is taxable.

No tax deduction will be allowed for impairment losses in respect of the following:
a) Credit-impaired financial instruments that are on capital account;
b) Non-credit-impaired financial instruments, regardless whether they are on revenue or capital account.

For more details, please refer to our website on:

"Impairment Loss on Trade Debts"
"Adopting Financial Reporting Standard (FRS) 39 and 109 and its Tax Implications"

GO TO TAX
COMPUTATION
COMPUTATION

INTEREST ADJUSTMENT

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 our website on:
"Interest Adjustment"

GO TO TAX GO TO INTEREST
COMPUTATION ADJUSTMENT
ADJUSTMENT
COMPUTATION SCHEDULE
 GO GO
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INTEREST
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TAX ADJUSTMENT
COMPUTATION ADJUSTMENT
SCHEDULE
SCHEDULE
MEDICAL EXPENSES

Medical expenses of employees are tax-deductible as long as these are capped at 1% of total employee
remuneration accrued for the year.

However, the cap increases to 2% if the company implements any of the following:

- Portable Medical Benefits Scheme (PMBS);

- Transferable Medical Insurance Scheme (TMIS); or
- Provision of inpatient medical insurance benefits in the form of portable medical shield plans (additional
deduction will exclude premiums for riders that cover deductibles and co-payments^).
^ If the medical expenses (including rider premiums) do not exceed 1% of the total remuneration of the employees for the relevant
basis period, the full amount of medical expenses will be deductible. If the medical expenses (including rider premiums) exceed 1%
of the total remuneration of the employees for the relevant basis period, any excess amount which does not relate to rider
premiums, will be deductible up to another 1% of the total remuneration of the employees for the relevant basis period.

For more information on the above schemes and the qualifying conditions, please refer to MOM's website:
http://www.mom.gov.sg/employment-practices/schemes-for-employers-and-employees/portable-medical-benefits

In addition, if the company makes ad-hoc contributions to its employees' Medisave accounts (subject to a cap
of $2,730 per employee per year), it will also enjoy the additional tax deduction beyond the 1% limit on the
amount of ad-hoc Medisave contributions made, even if the company did not adopt any of the portable
medical benefits arrangements, up to the overall medical expenses tax deduction limit of 2%.

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, benefits-in-kind, skills development levy (SDL) and
foreign worker levy (FWL).

Medical expenses include maternity health care, natal care, preventive and therapeutic treatment expenses,
provision of a medical clinic by the employer, cash allowance in lieu of medical expenses, dental expenses,
premium incurred on medical and dental insurance and contributions made by a company to the employees'
CPF medisave accounts [subject to a maximum deduction of $2,730 for that year for each employee (does
not include employees who are holding a professional visit pass, an employment pass or a work permit)].

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EXPENSE
EXPENSE
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COMPUTATION SCHEDULE

NET PROFIT / (LOSS) BEFORE TAX AS PER FINANCIAL STATEMENTS

For "Net Loss", please enter minus sign (-) in front of the loss figure. E.g. if net loss is $690, enter "-690".

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NET RENTAL INCOME

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

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NOT DEDUCTIBLE EXPENSES

Generally, an expense will not be deductible if it is:

a) prohibited under the Income Tax Act;
b) capital in nature;
c) a contingent liability; or
d) not solely incurred in the production of income.

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

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TAX EXEMPTION

a) Tax Exemption Scheme for New Start-up Companies

The qualifying conditions for the Tax Exemption Scheme for New Start-up Companies, including companies
limited by guarantee*, are as follows:

- The company must be incorporated in Singapore;

- The company must be a tax resident in Singapore for that YA;
- The company's total share capital is beneficially held directly by no more than 20 shareholders throughout
the basis period for that YA where:
¤ all of the shareholders are individuals; or
¤ at least one shareholder is an individual holding at least 10% of the issued ordinary shares of the
company.

* Companies limited by guarantee must have members where:

- all of whom are individuals throughout the basis period for that YA; or
- at least one of whom is an individual throughout the basis period for that YA, and the contribution of that
individual under the memorandum of association of the company to the assets of the company in the event of
it being wound up, amounts to at least 10% of the total contributions of the members of the company
throughout the basis period for that YA.

The following new start-up companies are not eligible for the Tax Exemption Scheme for New Start-Up
Companies:
- A company which undertakes property development for sale, for investment, or for both investment and sale;
and
- A company whose principal activity is that of investment holding.

From YA 2020, tax exemption is granted on the first $200,000 of a qualifying company's normal chargeable
income, where any of the first 3 YAs falls in or after YA 2020. The exempt amount is computed as follows:

First $100,000 @ 75% = $ 75,000

Next $100,000 @ 50% = $ 50,000
Total $200,000 = $125,000

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 2019 and its first set of accounts closed
on 30 Jun 2020 (more than 12 months). Assuming this company has met the qualifying conditions for filing
Form C-S in its first year of filing:

Items to be submitted by Income Tax Return Filing Due

YA Basis Period
Date

2020 (1st YA) 15 Apr 2019 to 30 Jun 2019 - YA 2021 Form C-S*

2021 (2nd YA) 1 Jul 2019 to 30 Jun 2020

2022 (3rd YA) 1 Jul 2020 to 30 Jun 2021 If the company files Form C-S
YA 2022 Form C-S

If the company files Form C

- YA 2022 Form C and other relevant Forms
- Audited / unaudited financial statements for the year ended
30 Jun 2021
- Tax computation and supporting schedules for YA 2022

*The company will be able to complete the line items for two YAs (i.e. YA 2020 and YA 2021) in the YA 2021 Form C-S and the
assessments will be raised based on the YA 2021 Form C-S submitted.
For more information on this tax exemption scheme, please refer to our website on:
“Tax Exemption Scheme for New Start-Up Companies”

b) 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 $200,000 of their normal chargeable income for YA 2021.

The tax exemption for companies on chargeable income of up to $200,000 is as follows:

First $ 10,000 @ 75% = $ 7,500
Next $190,000 @ 50% = $ 95,000
Total $200,000 = $102,500

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UNUTILISED CAPITAL ALLOWANCES

A company can use the unutilised capital allowances brought forward from previous YAs 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 shareholding test, please refer to our website on:
"Determining 'Substantial Change' in Shareholders"

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UNUTILISED DONATIONS

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 2015 and before will be
disregarded in YA 2021.

A company can use the unutilised donations brought forward from previous YAs provided there is no
substantial change in its ultimate shareholders and their shareholdings as at the relevant dates (known as the
shareholding test).

For more information on the shareholding test, please refer to our website on:
"Determining 'Substantial Change' in Shareholders"

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UNUTILISED LOSSES

A company can use the unutilised losses brought forward from previous YAs provided there is no substantial
change in its ultimate shareholders and their shareholdings as at the relevant dates (known as the
shareholding test).

For more information on the shareholding test, please refer to our website on:
"Determining 'Substantial Change' in Shareholders"

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Back to Tax Computation
 Items to be submitted by Income Tax Return Filing Due
Date

- YA 2021 Form C-S*

If the company files Form C-S

YA 2022 Form C-S

If the company files Form C

- YA 2022 Form C and other relevant Forms
- Audited / unaudited financial statements for the year ended
30 Jun 2021
- Tax computation and supporting schedules for YA 2022