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On September 12, 2014, the Inland Revenue Authority of Singapore (IRAS) issued an e-Tax Guide on the deduction allowed for qualifying statutory and regulatory expenses that businesses incur in complying with various laws and regulations in Singapore or elsewhere. The specific deduction is introduced to support businesses' efforts to comply with statutory and regulatory requirements and to provide certainty on the deduction of such expenses.
The proposed amendment codifies what were concessions granted previously. Accordingly, the amendment provides more certainty to taxpayers on the deductibility of these expenses.
Expenses qualifying for tax deduction. Although businesses are required to comply with various laws and regulations, some of the expenses incurred in doing so may not be tax deductible, as they are not regarded as incurred wholly and exclusively in generating income. However, some of the expenses are currently allowed as an administrative concession.
Effective from year of...