There are many legitimate ways to lower a company's chargeable income in Singapore – the key is to use the deductions, allowances and incentives you are entitled to, rather than aggressive arrangements that risk challenge under anti-avoidance rules. Common levers include:
- Claiming all allowable business expenses that are wholly and exclusively incurred in producing income.
- Claiming capital allowances on qualifying plant, machinery and equipment, including accelerated write-offs where available.
- Applying the Start-Up Tax Exemption or Partial Tax Exemption, and any Corporate Income Tax Rebate granted for the year.
- Using the Enterprise Innovation Scheme (EIS) for enhanced deductions on qualifying R&D, innovation and training activities.
- Carrying forward (or, where eligible, carrying back) unutilised losses and capital allowances, and using group relief within a qualifying group.
- Claiming the 250% deduction for qualifying donations to approved Institutions of a Public Character (IPCs).
The right mix depends on your activities and profits. Apexia can review your position and build a compliant, well-supported plan to manage your tax liability.