Income Tax Act 1947 · 2020 Revised Edition · Part 5 · Deductions Against Income
14V. Deduction for expenditure incurred to comply with statutory and regulatory requirements
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For the purpose of ascertaining the income of any person for the basis period for the year of assessment 2014 or any subsequent year of assessment, the following expenditure, not being capital expenditure, incurred during the basis period by that person is allowed as a deduction for that year of assessment, if the Comptroller is satisfied that the expenditure is incurred for the purpose of the business that is carried on in the production of the income:
expenditure incurred for the purpose of compliance by that person with any written law of Singapore or another country;
expenditure incurred for the purpose of compliance by that person with any code, standard, rule, requirement or other document issued by the Government, a public authority established by or under any public Act, or by the government or a public authority of another country, or by a securities exchange;
expenditure incurred —
to study the impact of any proposed law referred to in paragraph (a) or proposed document referred to in paragraph (b);
to prevent or to detect any non‑compliance with any law referred to in paragraph (a) or document referred to in paragraph (b);
to voluntarily comply with a requirement of any law referred to in paragraph (a) or document referred to in paragraph (b), even though the person does not need to comply with the requirement.
No deduction is allowed under this section for —
any expenditure which is deductible under any other provision of this Act; or
any fine or penalty imposed or security deposit forfeited for a breach of a requirement of any law referred to in subsection (1)(a) or document referred to in subsection (1)(b), including any sum paid to compound any offence.[14X