§ 14H — Further or double deduction for overseas investment development expenditure

14H.—(1) Where the Comptroller is satisfied that any investment development expenditure for the carrying out of an approved investment project overseas has been incurred by an approved firm or company resident in Singapore and carrying on business in Singapore, there is to be allowed —(a)

where such expenditure is allowable as a deduction under section 14, a further deduction of the amount of such expenditure in addition to the deduction allowed under that section; or

(b)

where such expenditure is not allowable as a deduction under section 14, a deduction equal to twice the amount of such expenditure.

(1A) For the purposes of subsection (1) and subject to subsection (1B), the firm or company —(a)

need not be an approved firm or approved company to be allowed a deduction under subsection (1) in respect of the following expenditure that is directly attributable to the carrying out of any study to identify investment overseas:(i)

where the expenditure is incurred during the period between 1 April 2012 and 16 February 2021 (both dates inclusive) — any investment development expenditure;

(ii)

where the expenditure is incurred during the period between 17 February 2021 and 31 December 2030 (both dates inclusive) — such investment development expenditure as is prescribed by rules made under section 7; and[Act 25 of 2025 wef 08/12/2025]

(b)

need not seek approval for the investment project to which the expenditure relates.[45/2018; 41/2020; 27/2021]

(1AA) Rules made for the purposes of subsection (1A)(a)(ii) may be made to take effect from (and including) 17 February 2021.[27/2021]

(1B) The amount of the expenditure for which the deduction may be allowed under subsection (1A), after adding the expenditure for which a deduction is allowed to the firm or company under section 14B(2A), 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]

(2) The Minister or an authorised body may —(a)

specify the maximum amount of investment development expenditure for the carrying out of an approved investment project overseas (or any item thereof) to be allowed under subsection (1), other than expenditure that is the subject of a claim for deduction under subsection (1A); and

(b)

impose such conditions as the Minister or authorised body thinks fit when approving the investment project for which the deduction is to be allowed under this section.[Act 41 of 2020 wef 12/04/2024]

(2A) The sum of —(a)

the amount of expenditure allowed as a deduction or a further deduction to a firm or company under subsection (1); and

(b)

any amount of expenditure allowed as a deduction or a further deduction to the firm or company under section 14I(1),

must not exceed $1 million for each year of assessment.

[2/2016]

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

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

more than 2 employees taking part in any study to identify investment overseas; or

(ii)

more than the approved number of employees taking part in any feasibility or due diligence study on any approved investment overseas;

(b)

any expenditure 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

(c)

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

(4) Despite subsection (3), 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 expenditure referred to in subsection (3)(b).[2/2016]

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

(5) If the firm or company fails to comply with a condition subsequent imposed under subsection (4), 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]

(5A) 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]

(6) Section 14B(10) applies, with the necessary modifications, to any firm or company to which a deduction is allowed under subsection (1).

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

“investment development expenditure” means —(a)

expenses directly attributable to the carrying out of —(i)

any study to identify investment overseas; and

(ii)

any feasibility or due diligence study on any approved investment overseas; and

(b)

expenses incurred on or after 17 February 2021 for the transportation of any sample for use in any study carried out overseas to identify investment overseas.[27/2021]

(8) No approval may be granted under this section after 31 December 2030.[14K

[34/2016; 41/2020]

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

—(1) Where the Comptroller is satisfied that any investment development expenditure for the carrying out of an approved investment project overseas has been incurred by an approved firm or company resident in Singapore and carrying on business in Singapore, there is to be allowed —(a)

where such expenditure is allowable as a deduction under section 14, a further deduction of the amount of such expenditure in addition to the deduction allowed under that section; or

(b)

where such expenditure is not allowable as a deduction under section 14, a deduction equal to twice the amount of such expenditure.

(1A) For the purposes of subsection (1) and subject to subsection (1B), the firm or company —(a)

need not be an approved firm or approved company to be allowed a deduction under subsection (1) in respect of the following expenditure that is directly attributable to the carrying out of any study to identify investment overseas:(i)

where the expenditure is incurred during the period between 1 April 2012 and 16 February 2021 (both dates inclusive) — any investment development expenditure;

(ii)

where the expenditure is incurred during the period between 17 February 2021 and 31 December 2030 (both dates inclusive) — such investment development expenditure as is prescribed by rules made under section 7; and[Act 25 of 2025 wef 08/12/2025]

(b)

need not seek approval for the investment project to which the expenditure relates.[45/2018; 41/2020; 27/2021]

(1AA) Rules made for the purposes of subsection (1A)(a)(ii) may be made to take effect from (and including) 17 February 2021.[27/2021]

(1B) The amount of the expenditure for which the deduction may be allowed under subsection (1A), after adding the expenditure for which a deduction is allowed to the firm or company under section 14B(2A), 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]

(2) The Minister or an authorised body may —(a)

specify the maximum amount of investment development expenditure for the carrying out of an approved investment project overseas (or any item thereof) to be allowed under subsection (1), other than expenditure that is the subject of a claim for deduction under subsection (1A); and

(b)

impose such conditions as the Minister or authorised body thinks fit when approving the investment project for which the deduction is to be allowed under this section.[Act 41 of 2020 wef 12/04/2024]

(2A) The sum of —(a)

the amount of expenditure allowed as a deduction or a further deduction to a firm or company under subsection (1); and

(b)

any amount of expenditure allowed as a deduction or a further deduction to the firm or company under section 14I(1),

must not exceed $1 million for each year of assessment.

[2/2016]

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

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

more than 2 employees taking part in any study to identify investment overseas; or

(ii)

more than the approved number of employees taking part in any feasibility or due diligence study on any approved investment overseas;

(b)

any expenditure 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

(c)

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

(4) Despite subsection (3), 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 expenditure referred to in subsection (3)(b).[2/2016]

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

(5) If the firm or company fails to comply with a condition subsequent imposed under subsection (4), 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]

(5A) 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]

(6) Section 14B(10) applies, with the necessary modifications, to any firm or company to which a deduction is allowed under subsection (1).

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

“investment development expenditure” means —(a)

expenses directly attributable to the carrying out of —(i)

any study to identify investment overseas; and

(ii)

any feasibility or due diligence study on any approved investment overseas; and

(b)

expenses incurred on or after 17 February 2021 for the transportation of any sample for use in any study carried out overseas to identify investment overseas.[27/2021]

(8) No approval may be granted under this section after 31 December 2030.[14K

[34/2016; 41/2020]

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