Income Tax Act 1947 · 2020 Revised Edition · Part 5 · Deductions Against Income
14R. Deduction for expenses incurred before first dollar of income from trade, business, profession or vocation
Feedback & supportLast amended by an amending law of 2016.
Subject to section 14X, a person who —
derives the first dollar of income from a trade, business, profession or vocation in an applicable basis period; and
incurs a previous expense for which the person would have been allowed a deduction or further deduction under a provision of this Part if the person had commenced the trade, business, profession or vocation by the time it is incurred,is allowed the deduction or further deduction for the previous expense under and in accordance with that provision.
For the purposes of subsection (1) —
a previous expense is any outgoing or expense incurred for the purpose of that trade, business, profession or vocation at any time before the date the person derives that first dollar of income, but no earlier than 12 months before the first day of the applicable basis period (called in this section the first day);
the person is deemed to have commenced the person’s trade, business, profession or vocation on the first day; and
any previous expense incurred by the person before the first day but no earlier than 12 months before that day is deemed to have been incurred by the person on that day.
To avoid doubt —
subsection (1) is subject to any other requirement to be satisfied under the relevant provision of this Part before the deduction or further deduction may be allowed; and
a deduction or further deduction that may be or has been allowed by virtue of subsection (1) is considered for the purposes of this Act as one that may be or has been allowed under the relevant provision of this Part.
Subsection (1) does not apply to the business of making investments carried out by a company or trustee of a property trust, to which section 10D applies.
company
“company” means any company incorporated or registered under any law in force in Singapore or elsewhere;
Subsection (1) is without prejudice to any provision of this Part allowing the deduction or further deduction of any expense or outgoing incurred at an earlier point in time.
In this section —
a reference to an applicable basis period is a reference to the basis period for the year of assessment 2012 or a subsequent year of assessment; and
a reference to a provision of this Part includes a reference to regulations made under a provision of this Part, but excludes this section.[14U