Your chargeable income is your total income minus any deductions
and reliefs. You can also utilise tax rebates to reduce your taxes.
Allowable Business Expenses
You can deduct any expenses that are incurred solely for the
purposes of generating income for your business. Items such as
rent, wages paid to employees and expenses on stationery and
supplies are all considered "allowable business expenses".
You can claim capital allowances on plant and machinery that
you have purchased for your business.
See: Claim Capital Allowances
Unutilised Losses And Capital Allowances
Losses and capital allowance can be used to offset your total
chargeable income. Any part of the losses or capital allowance
not fully used to offset income in the financial year is termed
- You can also carry forward unutilised losses and
capital allowances to offset income made in the next financial
- You can also carry back unutilised losses and capital
allowances of up to S$100,000 in the current year to offset the
income made in the preceding year.
Personal Donations, Reliefs & Rebates
- As your trade income forms part of your personal income, you
can also use personal reliefs and donations to reduce your
- You can claim deductions for donations made to certain
- You can claim tax reliefs. There are various types of tax
reliefs such as course fees, child, wife/handicapped spouse,
See: Tax reliefs
- You can claim tax rebates such as the Parenthood Tax Rebate.