§ 14B — Further deduction for expenses relating to approved trade fairs, exhibitions or trade missions, maintenance of overseas trade office, or electronic commerce

14B.—(1) Subject to this section, where the Comptroller is satisfied that the expenses specified in subsection (2) have been incurred by an approved firm or company resident in or having a permanent establishment in Singapore for the primary purpose of —(a)

promoting the trading of goods or the provision of services; or

(b)

the provision of services in connection with the use of any right under a master franchise or master intellectual property licence where the firm or company is the holder of the franchise or licence,

there is allowed a further deduction of the amount of such expenses in addition to the amount allowed under section 14.

(2) The expenses referred to in subsection (1) are —(a)

expenses in establishing, maintaining or otherwise participating in —(i)

a trade fair, trade exhibition, trade mission or trade promotion activity held or conducted outside Singapore; or

(ii)

an approved trade fair or trade exhibition held in Singapore;

(aa)

any of the following expenses incurred on or after 1 April 2020 that are approved for the firm or company:(i)

expenses to secure a spot to speak at a trade mission or trade promotion activity mentioned in paragraph (a)(i);

(ii)

expenses for the transportation of any sample for use at a trade mission or trade promotion activity mentioned in paragraph (a)(i);

(iii)

expenses to engage a consultant (not being a related party of the approved firm or company or an officer or employee of such related party) to organise a business networking event during a trade mission or trade promotion activity mentioned in paragraph (a)(i);

(ab)

expenses incurred on or after 17 February 2021 —(i)

in establishing, maintaining or otherwise participating in an approved trade fair or trade exhibition held or conducted (whether wholly or partly) by means of teleconference, videoconferencing or any other electronic means of communications; or

(ii)

for the transportation of any sample to any potential client outside of Singapore, following the potential client’s attendance at or participation in the approved trade fair or trade exhibition;

(ac)

any of the following expenses incurred on or after 15 February 2023 that are approved for the firm or company for the purposes of enabling the firm or company to trade goods, or provide services to persons, in a foreign country using an electronic marketplace:(i)

expenses incurred on the creation and maintenance of an account with the electronic marketplace;

(ii)

expenses incurred on the listing of the goods to be traded or services to be provided on the electronic marketplace;

(iii)

expenses incurred for any promotion campaign using the electronic marketplace, including the design and creation of the materials for the promotion campaign;

(iv)

expenses incurred to engage a person (not being an officer or employee or a related party of the approved firm or company, or an officer or employee of such related party) to provide advisory service to the firm or company in connection with the use of the electronic marketplace;[Act 30 of 2023 wef 15/02/2023]

(b)

expenses in maintaining an approved overseas trade office; or

(c)

market development expenditure for the carrying out of any approved marketing project.[41/2020; 27/2021]

(2A) For the purposes of subsection (1) and subject to subsection (2B), the firm or company need not be an approved firm or approved company to be allowed a deduction under subsection (1) in respect of expenses mentioned in subsection (2)(a) that are incurred at any time between 1 April 2012 and 16 February 2021 (both dates inclusive) for the primary purpose of promoting the trading of goods or the provision of services.[45/2018; 41/2020; 27/2021]

(2AA) For the purposes of subsection (1) and subject to subsection (2B), the firm or company need not be an approved firm or approved company to be allowed a deduction under subsection (1) in respect of any of the following expenses incurred during the period between 17 February 2021 and 31 December 2030 (both dates inclusive) for the primary purpose of promoting the trading of goods or the provision of services:(a)

such expenses in subsection (2)(a) as are prescribed by rules made under section 7;

(b)

such expenses in subsection (2)(ab) as are prescribed by rules made under section 7.[27/2021]

[Act 25 of 2025 wef 08/12/2025]

(2AB) Despite subsection (1) but subject to subsection (2B), where the Comptroller is satisfied that any expenses mentioned in subsection (2AC) have been incurred by a firm or company resident in or having a permanent establishment in Singapore during the period between 17 February 2021 and 31 December 2030 (both dates inclusive) for the primary purpose of promoting the trading of goods or the provision of services, there is to be allowed a further deduction of the amount of such expenses in addition to the amount allowed under section 14.[27/2021]

[Act 25 of 2025 wef 08/12/2025]

(2AC) The expenses mentioned in subsection (2AB) are the following types of expenses that fall within descriptions prescribed by rules made under section 7, to the extent that such expenses do not fall within subsection (1):(a)

expenses incurred in the design of packaging;

(b)

expenses incurred in obtaining any approved certification of goods and services;

(c)

expenses incurred in any advertisement placed in any media or on any promotion campaign carried out overseas.[27/2021]

(2AD) Rules made for the purposes of subsections (2AA) and (2AC) may be made to take effect from (and including) 17 February 2021.[27/2021]

(2B) The amount of the expenses for which the deduction may be allowed under subsections (2A), (2AA) and (2AB) (whichever is applicable), after adding the expenditure for which a deduction is allowed to the firm or company under section 14H(1A), must not exceed —(a)

for a year of assessment before the year of assessment 2019 — $100,000; or

(b)

for the year of assessment 2019 or a subsequent year of assessment — $150,000.[45/2018; 27/2021]

(3) The Minister or an authorised body may specify the maximum amount of expenditure (or any item thereof) to be allowed under subsection (1), other than expenses that are the subject of a claim for deduction under subsections (2A), (2AA) and (2AB) (whichever is applicable).[27/2021]

[Act 41 of 2020 wef 12/04/2024]

(4) No deduction is allowed under this section in respect of —(a)

any expenses which are not allowed as deductions under section 14;

(b)

travelling, accommodation and subsistence expenses or allowances for —(i)

more than 2 employees taking part in the trade fair, trade exhibition, trade mission or trade promotion activity, being one held or conducted overseas; or

(ii)

more than the approved number of employees taking part in the approved marketing project;

(c)

any expenses relating to an approved overseas trade office —(i)

which are incurred in the establishment of the approved overseas trade office;

(ii)

by way of remuneration, travelling, accommodation and subsistence expenses or allowances for more than the approved number of employees of the approved overseas trade office;

(iii)

which are specifically excluded as a condition for the approval of the overseas trade office under this section;

(iv)

which are incurred after the end of the approved number of years from the date of establishment of the approved overseas trade office; or

(v)

which are incurred by a firm or company having a permanent establishment subject to tax in the country in which the approved trade office is established;

(d)

any expenses incurred during the basis period for a year of assessment by a firm or company if —(i)

any part of its income for that year of assessment is exempt or partly exempt from tax under section 13A, 13E, 13P or 13S;

(ii)

any part of its income for that year of assessment is subject to tax at a concessionary rate of tax under section 43C, 43D, 43E, 43G, 43I, 43J, 43L, 43P, 43Q, 43R, 43U, 43V or 43X, or the regulations made under any of those sections; or

(iii)

it is given tax relief under Part 2, 3 or 4 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 for that year of assessment, or is given an investment allowance under Part 8 of that Act for that year of assessment; or

(e)

any expenses to the extent they are or are to be subsidised by a grant or subsidy from the Government or a statutory board.[2/2016; 45/2018]

(4A) Despite subsection (4), the Minister or an authorised body may, in any particular case, subject to such conditions precedent and conditions subsequent as the Minister or authorised body may impose, allow a deduction of any expenses referred to in subsection (4)(c)(v) provided that they are not also expenses referred to in subsection (4)(c)(i), (ii), (iii) or (iv).[2/2016]

[Act 41 of 2020 wef 12/04/2024]

(5) Despite subsection (4), the Minister or an authorised body may, in any particular case, and subject to such conditions precedent and conditions subsequent as the Minister or authorised body may impose, allow a deduction of any expenses referred to in subsection (4)(d).[2/2016]

[Act 41 of 2020 wef 12/04/2024]

(6) If the firm or company fails to comply with a condition subsequent imposed under subsection (4A) or (5), the deduction allowed to the firm or company under that subsection is treated as the firm’s or company’s income for the year of assessment in which the Comptroller discovers the non‑compliance.[2/2016]

(7) In relation to a deduction under this section, a condition is a condition subsequent if or to the extent that it can only be satisfied after the deduction is allowed, and a condition is a condition precedent if or to the extent that it is not a condition subsequent; and accordingly a condition may, depending on the circumstances, be either a condition precedent or a condition subsequent.[2/2016]

(8) [Deleted by Act 19 of 2013]

(9) [Deleted by Act 19 of 2013]

(10) Despite anything in this section, where it appears to the Comptroller that in any year of assessment any further deduction which has been allowed under this section or section 14E ought not to have been so allowed, the Comptroller may, within the year of assessment or within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the firm or company as may be necessary in order to make good any loss of tax.[41/2020]

(11) In this section —“approved” means approved by the Minister or an authorised body;[Act 41 of 2020 wef 12/04/2024]

“electronic marketplace” means a medium that —(a)

allows a person to trade goods or provide services to any other person by electronic means; and

(b)

is operated by electronic means,

but not any medium that is solely for processing any payment for any trading of goods or provision of services;

[Act 30 of 2023 wef 15/02/2023]

“foreign country” means any country outside Singapore;[Act 30 of 2023 wef 15/02/2023]

“market development expenditure” means —(a)

approved expenses directly attributable to the carrying out of market research or obtaining of market information, including any feasibility study;

(b)

expenses in respect of advertisements placed in approved media;

(c)

expenses incurred on approved promotion campaigns;

(d)

approved expenses incurred in the design of packaging, or in the certification of goods or services where such certification is carried out by an approved person; or

(e)

approved expenses incurred on or after 1 April 2020 for the engagement of a consultant (not being a related party of the approved firm or company or an officer or employee of such related party) —(i)

to identify a suitable person to promote the trading of any goods, or the provision of any services, in a country outside Singapore; or

(ii)

to build up a business network in a country outside Singapore;

“master franchise” means any agreement under which the franchisor authorises or permits the franchisee to use in Singapore or overseas a business system owned or controlled by the franchisor, including the sub‑franchising of the business system;

“master intellectual property licence” means any licence under which the licensor authorises or permits the licensee to use in Singapore or overseas the rights under a patent, copyright, trade mark, design or know‑how, including the sub‑licensing of the same.[Act 33 of 2022 wef 04/11/2022]

[41/2020]

[Deleted by Act 33 of 2022 wef 04/11/2022]

(12) No approval may be granted under this section after 31 December 2030.[34/2016; 41/2020]

[Act 30 of 2023 wef 15/02/2023]

[Act 25 of 2025 wef 08/12/2025]

—(1) Subject to this section, where the Comptroller is satisfied that the expenses specified in subsection (2) have been incurred by an approved firm or company resident in or having a permanent establishment in Singapore for the primary purpose of —(a)

promoting the trading of goods or the provision of services; or

(b)

the provision of services in connection with the use of any right under a master franchise or master intellectual property licence where the firm or company is the holder of the franchise or licence,

there is allowed a further deduction of the amount of such expenses in addition to the amount allowed under section 14.

(2) The expenses referred to in subsection (1) are —(a)

expenses in establishing, maintaining or otherwise participating in —(i)

a trade fair, trade exhibition, trade mission or trade promotion activity held or conducted outside Singapore; or

(ii)

an approved trade fair or trade exhibition held in Singapore;

(aa)

any of the following expenses incurred on or after 1 April 2020 that are approved for the firm or company:(i)

expenses to secure a spot to speak at a trade mission or trade promotion activity mentioned in paragraph (a)(i);

(ii)

expenses for the transportation of any sample for use at a trade mission or trade promotion activity mentioned in paragraph (a)(i);

(iii)

expenses to engage a consultant (not being a related party of the approved firm or company or an officer or employee of such related party) to organise a business networking event during a trade mission or trade promotion activity mentioned in paragraph (a)(i);

(ab)

expenses incurred on or after 17 February 2021 —(i)

in establishing, maintaining or otherwise participating in an approved trade fair or trade exhibition held or conducted (whether wholly or partly) by means of teleconference, videoconferencing or any other electronic means of communications; or

(ii)

for the transportation of any sample to any potential client outside of Singapore, following the potential client’s attendance at or participation in the approved trade fair or trade exhibition;

(ac)

any of the following expenses incurred on or after 15 February 2023 that are approved for the firm or company for the purposes of enabling the firm or company to trade goods, or provide services to persons, in a foreign country using an electronic marketplace:(i)

expenses incurred on the creation and maintenance of an account with the electronic marketplace;

(ii)

expenses incurred on the listing of the goods to be traded or services to be provided on the electronic marketplace;

(iii)

expenses incurred for any promotion campaign using the electronic marketplace, including the design and creation of the materials for the promotion campaign;

(iv)

expenses incurred to engage a person (not being an officer or employee or a related party of the approved firm or company, or an officer or employee of such related party) to provide advisory service to the firm or company in connection with the use of the electronic marketplace;[Act 30 of 2023 wef 15/02/2023]

(b)

expenses in maintaining an approved overseas trade office; or

(c)

market development expenditure for the carrying out of any approved marketing project.[41/2020; 27/2021]

(2A) For the purposes of subsection (1) and subject to subsection (2B), the firm or company need not be an approved firm or approved company to be allowed a deduction under subsection (1) in respect of expenses mentioned in subsection (2)(a) that are incurred at any time between 1 April 2012 and 16 February 2021 (both dates inclusive) for the primary purpose of promoting the trading of goods or the provision of services.[45/2018; 41/2020; 27/2021]

(2AA) For the purposes of subsection (1) and subject to subsection (2B), the firm or company need not be an approved firm or approved company to be allowed a deduction under subsection (1) in respect of any of the following expenses incurred during the period between 17 February 2021 and 31 December 2030 (both dates inclusive) for the primary purpose of promoting the trading of goods or the provision of services:(a)

such expenses in subsection (2)(a) as are prescribed by rules made under section 7;

(b)

such expenses in subsection (2)(ab) as are prescribed by rules made under section 7.[27/2021]

[Act 25 of 2025 wef 08/12/2025]

(2AB) Despite subsection (1) but subject to subsection (2B), where the Comptroller is satisfied that any expenses mentioned in subsection (2AC) have been incurred by a firm or company resident in or having a permanent establishment in Singapore during the period between 17 February 2021 and 31 December 2030 (both dates inclusive) for the primary purpose of promoting the trading of goods or the provision of services, there is to be allowed a further deduction of the amount of such expenses in addition to the amount allowed under section 14.[27/2021]

[Act 25 of 2025 wef 08/12/2025]

(2AC) The expenses mentioned in subsection (2AB) are the following types of expenses that fall within descriptions prescribed by rules made under section 7, to the extent that such expenses do not fall within subsection (1):(a)

expenses incurred in the design of packaging;

(b)

expenses incurred in obtaining any approved certification of goods and services;

(c)

expenses incurred in any advertisement placed in any media or on any promotion campaign carried out overseas.[27/2021]

(2AD) Rules made for the purposes of subsections (2AA) and (2AC) may be made to take effect from (and including) 17 February 2021.[27/2021]

(2B) The amount of the expenses for which the deduction may be allowed under subsections (2A), (2AA) and (2AB) (whichever is applicable), after adding the expenditure for which a deduction is allowed to the firm or company under section 14H(1A), must not exceed —(a)

for a year of assessment before the year of assessment 2019 — $100,000; or

(b)

for the year of assessment 2019 or a subsequent year of assessment — $150,000.[45/2018; 27/2021]

(3) The Minister or an authorised body may specify the maximum amount of expenditure (or any item thereof) to be allowed under subsection (1), other than expenses that are the subject of a claim for deduction under subsections (2A), (2AA) and (2AB) (whichever is applicable).[27/2021]

[Act 41 of 2020 wef 12/04/2024]

(4) No deduction is allowed under this section in respect of —(a)

any expenses which are not allowed as deductions under section 14;

(b)

travelling, accommodation and subsistence expenses or allowances for —(i)

more than 2 employees taking part in the trade fair, trade exhibition, trade mission or trade promotion activity, being one held or conducted overseas; or

(ii)

more than the approved number of employees taking part in the approved marketing project;

(c)

any expenses relating to an approved overseas trade office —(i)

which are incurred in the establishment of the approved overseas trade office;

(ii)

by way of remuneration, travelling, accommodation and subsistence expenses or allowances for more than the approved number of employees of the approved overseas trade office;

(iii)

which are specifically excluded as a condition for the approval of the overseas trade office under this section;

(iv)

which are incurred after the end of the approved number of years from the date of establishment of the approved overseas trade office; or

(v)

which are incurred by a firm or company having a permanent establishment subject to tax in the country in which the approved trade office is established;

(d)

any expenses incurred during the basis period for a year of assessment by a firm or company if —(i)

any part of its income for that year of assessment is exempt or partly exempt from tax under section 13A, 13E, 13P or 13S;

(ii)

any part of its income for that year of assessment is subject to tax at a concessionary rate of tax under section 43C, 43D, 43E, 43G, 43I, 43J, 43L, 43P, 43Q, 43R, 43U, 43V or 43X, or the regulations made under any of those sections; or

(iii)

it is given tax relief under Part 2, 3 or 4 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 for that year of assessment, or is given an investment allowance under Part 8 of that Act for that year of assessment; or

(e)

any expenses to the extent they are or are to be subsidised by a grant or subsidy from the Government or a statutory board.[2/2016; 45/2018]

(4A) Despite subsection (4), the Minister or an authorised body may, in any particular case, subject to such conditions precedent and conditions subsequent as the Minister or authorised body may impose, allow a deduction of any expenses referred to in subsection (4)(c)(v) provided that they are not also expenses referred to in subsection (4)(c)(i), (ii), (iii) or (iv).[2/2016]

[Act 41 of 2020 wef 12/04/2024]

(5) Despite subsection (4), the Minister or an authorised body may, in any particular case, and subject to such conditions precedent and conditions subsequent as the Minister or authorised body may impose, allow a deduction of any expenses referred to in subsection (4)(d).[2/2016]

[Act 41 of 2020 wef 12/04/2024]

(6) If the firm or company fails to comply with a condition subsequent imposed under subsection (4A) or (5), the deduction allowed to the firm or company under that subsection is treated as the firm’s or company’s income for the year of assessment in which the Comptroller discovers the non‑compliance.[2/2016]

(7) In relation to a deduction under this section, a condition is a condition subsequent if or to the extent that it can only be satisfied after the deduction is allowed, and a condition is a condition precedent if or to the extent that it is not a condition subsequent; and accordingly a condition may, depending on the circumstances, be either a condition precedent or a condition subsequent.[2/2016]

(8) [Deleted by Act 19 of 2013]

(9) [Deleted by Act 19 of 2013]

(10) Despite anything in this section, where it appears to the Comptroller that in any year of assessment any further deduction which has been allowed under this section or section 14E ought not to have been so allowed, the Comptroller may, within the year of assessment or within 4 years after the expiry of that year of assessment, make such assessment or additional assessment upon the firm or company as may be necessary in order to make good any loss of tax.[41/2020]

(11) In this section —“approved” means approved by the Minister or an authorised body;[Act 41 of 2020 wef 12/04/2024]

“electronic marketplace” means a medium that —(a)

allows a person to trade goods or provide services to any other person by electronic means; and

(b)

is operated by electronic means,

but not any medium that is solely for processing any payment for any trading of goods or provision of services;

[Act 30 of 2023 wef 15/02/2023]

“foreign country” means any country outside Singapore;[Act 30 of 2023 wef 15/02/2023]

“market development expenditure” means —(a)

approved expenses directly attributable to the carrying out of market research or obtaining of market information, including any feasibility study;

(b)

expenses in respect of advertisements placed in approved media;

(c)

expenses incurred on approved promotion campaigns;

(d)

approved expenses incurred in the design of packaging, or in the certification of goods or services where such certification is carried out by an approved person; or

(e)

approved expenses incurred on or after 1 April 2020 for the engagement of a consultant (not being a related party of the approved firm or company or an officer or employee of such related party) —(i)

to identify a suitable person to promote the trading of any goods, or the provision of any services, in a country outside Singapore; or

(ii)

to build up a business network in a country outside Singapore;

“master franchise” means any agreement under which the franchisor authorises or permits the franchisee to use in Singapore or overseas a business system owned or controlled by the franchisor, including the sub‑franchising of the business system;

“master intellectual property licence” means any licence under which the licensor authorises or permits the licensee to use in Singapore or overseas the rights under a patent, copyright, trade mark, design or know‑how, including the sub‑licensing of the same.[Act 33 of 2022 wef 04/11/2022]

[41/2020]

[Deleted by Act 33 of 2022 wef 04/11/2022]

(12) No approval may be granted under this section after 31 December 2030.[34/2016; 41/2020]

[Act 30 of 2023 wef 15/02/2023]

[Act 25 of 2025 wef 08/12/2025]