Income Tax Act 1947 · 2020 Revised Edition · Part 5 · Deductions Against Income
14ZG. Deduction for qualifying training expenditure for years of assessment 2024 to 2028
Feedback & supportLast amended by an amending law of 2026. 3 amendments in all.
Subject to this section, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction under section 14, a deduction for qualifying training expenditure incurred for the purposes of those trades and businesses computed in accordance with the formulawhere A is the lower of the following:
the qualifying training expenditure incurred during the basis period for that year of assessment; (b)$400,000.
No deduction is allowed to a person under this section in respect of any expenditure that is not allowed a deduction under section 14.
For the purposes of subsection (1), where an individual carrying on a trade or business through 2 or more firms (excluding partnerships) has, during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), incurred qualifying training expenditure in respect of such firms for the purposes of the individual’s trade or business, the deduction that may be allowed to the individual for that expenditure in respect of all of the individual’s trades and businesses must not exceed the amount computed in accordance with subsection (1) for that year of assessment.
year of assessment
“year of assessment” means the period of 12 months commencing on 1 January 1948, and each subsequent period of 12 months.
For the purposes of subsection (1), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the years of assessment 2024 and 2028 (both years inclusive), incurred qualifying training expenditure for the purposes of the partnership’s trade or business, the aggregate of the deductions that may be allowed to all the partners of the partnership for that expenditure in respect of all of the trades and businesses of the partnership must not exceed the amount computed in accordance with subsection (1) for that year of assessment.
In this section —
“central hirer”, in relation to a central hiring arrangement for a group of related parties, means the person that carries out the hiring functions for those parties under the arrangement;
“central hiring arrangement” means an arrangement for a group of related parties entered into for a bona fide commercial reason, where the hiring functions of the parties in the group are carried out by a single person;
“eligible course” means a course that is attended by an employee of a person carrying on a trade or business and that is —
eligible for funding by the SkillsFuture Singapore Agency or the Skills and Workforce Development Agency; and (b)specified on, or specified on an Internet website that is accessible from, a prescribed Internet website on the date of commencement of the course;
prescribed
“prescribed” means prescribed by rules or regulations made under this Act;
“employee”, in relation to a person carrying on a trade or business (called in this definition the first person), includes —
an individual —
who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the first person, and who is deployed to work solely for the first person; and
whose salary and other remuneration (including training expenditure incurred in respect of the individual) is borne, directly or indirectly, by the first person and not claimed by the central hirer as a deduction against the central hirer’s own income; and
an individual, being an employee of another person that is a related party of the first person —
who is seconded to a position of the first person under a bona fide commercial arrangement to work solely for the first person; and
whose salary and other remuneration (including training expenditure in respect of the individual) is borne, directly or indirectly, by the first person and not claimed by the other person as a deduction against the other person’s own income;
“qualifying training expenditure”, in relation to a person carrying on a trade or business, means any course fee, certification fee and assessment fee approved by the SkillsFuture Singapore Agency or the Skills and Workforce Development Agency for an eligible course for the purpose of this section, and that is paid (whether directly or in the form of a reimbursement of the employee for any payment made) by the person to a provider of the eligible course;
“Skills and Workforce Development Agency” means the Skills and Workforce Development Agency established by section 3 of the Skills and Workforce Development Agency Act 2026;
“SkillsFuture Singapore Agency” means the SkillsFuture Singapore Agency established by section 3 of the SkillsFuture Singapore Agency Act 2016 before the date of repeal of that Act.
A reference in this section to qualifying training expenditure excludes any expenditure to the extent that it is or is to be subsidised by any grant or subsidy from the Government, the SkillsFuture Singapore Agency, the Skills and Workforce Development Agency or any other statutory board.