§ 14O — Deduction for qualifying training expenditure for years of assessment 2011 to 2018

14O.—(1) 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 the year of assessment 2011 or the year of assessment 2012, 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 formula

where A is —

(a)

for the year of assessment 2011, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

$800,000; and

(b)

for the year of assessment 2012, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

the balance after deducting from $800,000 the lower of the amounts specified in paragraph (a)(i) and (ii).

(2) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14, a deduction for qualifying training expenditure incurred for the purposes of those trades and businesses computed in accordance with the formula

where A is —

(a)

for the year of assessment 2013, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

$1,200,000;

(b)

for the year of assessment 2014, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and

(c)

for the year of assessment 2015, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii), and the lower of the amounts specified in paragraph (b)(i) and (ii).[37/2014]

(2A) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2016, 2017 or 2018, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14, a deduction for qualifying training expenditure incurred for the purposes of those trades and businesses computed in accordance with the formula

where A is —

(a)

for the year of assessment 2016, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

$1,200,000;

(b)

for the year of assessment 2017, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and

(c)

for the year of assessment 2018, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii), and the lower of the amounts specified in paragraph (b)(i) and (ii).[37/2014]

(3) No deduction is allowed to a person under this section in respect of any expenditure which is not allowed as a deduction under section 14.

(4) In subsection (1), the amount under paragraph (a)(ii) is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2012, and the balance under paragraph (b)(ii) is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2011.

(5) In subsection (2) —(a)

if the person does not carry on any trade or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”;

(b)

if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and

(c)

to avoid doubt, no deduction may be made from the substituted amount in subsection (2)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (2)(a)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2013, and no deduction may be made from the substituted amount in subsection (2)(c)(ii) of the lower of the amounts specified in subsection (2)(b)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2014.

(5AA) In subsection (2A) —(a)

if the person does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”;

(b)

if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the reference to “$1,200,000” in the paragraphs of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and

(c)

to avoid doubt, no deduction may be made from the substituted amount in subsection (2A)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (2A)(a)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2016, and no deduction may be made from the substituted amount in subsection (2A)(c)(ii) of the lower of the amounts specified in subsection (2A)(b)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2017.[37/2014]

(5A) For the purposes of subsections (1), (2) and (2A), 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 year of assessment 2011 and the year of assessment 2018 (both years inclusive), incurred qualifying training expenditure in respect of such firms for the purposes of his or her trade or business, the deduction that may be allowed to him or her for that expenditure in respect of all of his or her trades and businesses must not exceed the amount computed in accordance with subsection (1), (2) or (2A) (as the case may be) for that year of assessment.[37/2014]

(5B) For the purposes of subsections (1), (2) and (2A), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), incurred qualifying training expenditure for the purposes of its 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), (2) or (2A) (as the case may be) for that year of assessment.[37/2014]

(6) In this section —“accredited”, in relation to a course, means accredited —(a)

by the Singapore Workforce Development Agency before 4 October 2016; or

(b)

by the SkillsFuture Singapore Agency on or after that date;

“central hirer”, in relation to a central hiring arrangement for a group of related parties, means the person who carries out 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;

“employee”, for the purposes of the year of assessment 2012 and subsequent years of assessment, and in relation to a person carrying on a trade or business (called in this definition the first person), includes an individual within such class of individuals as may be prescribed —(a)

who is either —(i)

engaged by the first person (whether as agent, independent contractor or otherwise) to carry on that trade or business; or

(ii)

engaged by another person (whether as agent, independent contractor or otherwise) to carry on that trade or business, where that other person also engages the first person (whether as agent, independent contractor or otherwise) both to carry on that trade or business and to oversee the individual in carrying on that trade or business; or

(b)

to whom the first person leases property, in the course of such trade or business, to enable the individual to provide a service to any person;

“employee”, for the purposes of the year of assessment 2014 and subsequent years of assessment, and in relation to a person carrying on a trade or business (called in this definition the first person), includes —(a)

an individual —(i)

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

(ii)

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

(b)

an individual —(i)

being an employee of another person, who is seconded to the first person under a bona fide commercial arrangement to work solely for the first person; and

(ii)

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” means —(a)

any training expenditure incurred directly in providing for employees —(i)

a Workforce Skills Qualification (WSQ) training course which is accredited and conducted by a WSQ in‑house training provider;

(ii)

a course approved by the Institute of Technical Education (ITE) under the ITE Approved Training Centre scheme;

(iii)

on‑the‑job training by an on‑the‑job training centre which is certified by the ITE; or

(iv)

for the purposes of the year of assessment 2012 and subsequent years of assessment, any other in‑house training course,

and includes any salary and other remuneration paid to in‑house trainers for conducting such courses and training (based on the hours spent in conducting the courses and training), but excludes salaries and other remuneration or payments of any employee attending or providing administrative support for the courses and imputed overheads like rental and the cost of utilities;

(b)

course fees for employees paid (whether directly or in the form of reimbursement) to an external training provider, including —(i)

registration or enrolment fees;

(ii)

examination fees;

(iii)

tuition fees; and

(iv)

aptitude test fees; and

(c)

rental of training facilities for any course or training referred to in paragraph (a) or (b), expenditure for meals and refreshments provided during any such course or training, and expenditure for training materials and stationery used for any such course or training,

but excludes any accommodation, travelling or transportation expenditure incurred in respect of employees attending or conducting the course or training, or, for the purposes of the year of assessment 2012 and subsequent years of assessment, any expenditure to the extent that it is recovered or recoverable from the employee.

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

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

[37/2014; 24/2016]

(7) Any expenditure incurred during any basis period for a training course referred to in paragraph (a)(iv) of the definition of “qualifying training expenditure” in subsection (6), including the rental of training facilities for the course, expenditure for meals and refreshments provided during the course, and expenditure for training materials and stationery used for the course, that is in excess of $10,000 must be disregarded for the purposes of the computation of a deduction under subsection (1), (2) or (2A).[37/2014]

(8) For the purposes of the year of assessment 2011 and subsequent years of assessment, a reference in this section to qualifying training expenditure excludes any expenditure to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board.[14R

[Act 30 of 2023 wef 30/10/2023]

—(1) 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 the year of assessment 2011 or the year of assessment 2012, 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 formula

where A is —

(a)

for the year of assessment 2011, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

$800,000; and

(b)

for the year of assessment 2012, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

the balance after deducting from $800,000 the lower of the amounts specified in paragraph (a)(i) and (ii).

(2) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2013, the year of assessment 2014 or the year of assessment 2015, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14, a deduction for qualifying training expenditure incurred for the purposes of those trades and businesses computed in accordance with the formula

where A is —

(a)

for the year of assessment 2013, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

$1,200,000;

(b)

for the year of assessment 2014, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and

(c)

for the year of assessment 2015, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii), and the lower of the amounts specified in paragraph (b)(i) and (ii).[37/2014]

(2A) Subject to this section and section 37J, for the purpose of ascertaining the income of a person carrying on a trade or business during the basis period for the year of assessment 2016, 2017 or 2018, there is allowed in respect of all of the person’s trades and businesses, in addition to the deduction allowed under section 14, a deduction for qualifying training expenditure incurred for the purposes of those trades and businesses computed in accordance with the formula

where A is —

(a)

for the year of assessment 2016, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

$1,200,000;

(b)

for the year of assessment 2017, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii); and

(c)

for the year of assessment 2018, the lower of the following:(i)

such expenditure incurred during the basis period for that year of assessment;

(ii)

the balance after deducting from $1,200,000 the lower of the amounts specified in paragraph (a)(i) and (ii), and the lower of the amounts specified in paragraph (b)(i) and (ii).[37/2014]

(3) No deduction is allowed to a person under this section in respect of any expenditure which is not allowed as a deduction under section 14.

(4) In subsection (1), the amount under paragraph (a)(ii) is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2012, and the balance under paragraph (b)(ii) is substituted with “$400,000” if the person does not carry on any trade or business during the basis period for the year of assessment 2011.

(5) In subsection (2) —(a)

if the person does not carry on any trade or business during the basis period for any one year of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”;

(b)

if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the year of assessment 2013 and the year of assessment 2015 (both years inclusive), the reference to “$1,200,000” in the paragraph of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and

(c)

to avoid doubt, no deduction may be made from the substituted amount in subsection (2)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (2)(a)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2013, and no deduction may be made from the substituted amount in subsection (2)(c)(ii) of the lower of the amounts specified in subsection (2)(b)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2014.

(5AA) In subsection (2A) —(a)

if the person does not carry on any trade or business during the basis period for any one year of assessment between the years of assessment 2016 and 2018 (both years inclusive), the references to “$1,200,000” in the paragraphs of that subsection applicable to the other 2 years of assessment are each substituted with “$800,000”;

(b)

if the person does not carry on any trade or business during the basis periods for any 2 years of assessment between the years of assessment 2016 and 2018 (both years inclusive), the reference to “$1,200,000” in the paragraphs of that subsection applicable to the remaining year of assessment is substituted with “$400,000”; and

(c)

to avoid doubt, no deduction may be made from the substituted amount in subsection (2A)(b)(ii) or (c)(ii) of the lower of the amounts specified in subsection (2A)(a)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2016, and no deduction may be made from the substituted amount in subsection (2A)(c)(ii) of the lower of the amounts specified in subsection (2A)(b)(i) and (ii) if the person does not carry on any trade or business during the basis period for the year of assessment 2017.[37/2014]

(5A) For the purposes of subsections (1), (2) and (2A), 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 year of assessment 2011 and the year of assessment 2018 (both years inclusive), incurred qualifying training expenditure in respect of such firms for the purposes of his or her trade or business, the deduction that may be allowed to him or her for that expenditure in respect of all of his or her trades and businesses must not exceed the amount computed in accordance with subsection (1), (2) or (2A) (as the case may be) for that year of assessment.[37/2014]

(5B) For the purposes of subsections (1), (2) and (2A), where a partnership carrying on a trade or business has, during the basis period for any year of assessment between the year of assessment 2011 and the year of assessment 2018 (both years inclusive), incurred qualifying training expenditure for the purposes of its 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), (2) or (2A) (as the case may be) for that year of assessment.[37/2014]

(6) In this section —“accredited”, in relation to a course, means accredited —(a)

by the Singapore Workforce Development Agency before 4 October 2016; or

(b)

by the SkillsFuture Singapore Agency on or after that date;

“central hirer”, in relation to a central hiring arrangement for a group of related parties, means the person who carries out 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;

“employee”, for the purposes of the year of assessment 2012 and subsequent years of assessment, and in relation to a person carrying on a trade or business (called in this definition the first person), includes an individual within such class of individuals as may be prescribed —(a)

who is either —(i)

engaged by the first person (whether as agent, independent contractor or otherwise) to carry on that trade or business; or

(ii)

engaged by another person (whether as agent, independent contractor or otherwise) to carry on that trade or business, where that other person also engages the first person (whether as agent, independent contractor or otherwise) both to carry on that trade or business and to oversee the individual in carrying on that trade or business; or

(b)

to whom the first person leases property, in the course of such trade or business, to enable the individual to provide a service to any person;

“employee”, for the purposes of the year of assessment 2014 and subsequent years of assessment, and in relation to a person carrying on a trade or business (called in this definition the first person), includes —(a)

an individual —(i)

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

(ii)

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

(b)

an individual —(i)

being an employee of another person, who is seconded to the first person under a bona fide commercial arrangement to work solely for the first person; and

(ii)

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” means —(a)

any training expenditure incurred directly in providing for employees —(i)

a Workforce Skills Qualification (WSQ) training course which is accredited and conducted by a WSQ in‑house training provider;

(ii)

a course approved by the Institute of Technical Education (ITE) under the ITE Approved Training Centre scheme;

(iii)

on‑the‑job training by an on‑the‑job training centre which is certified by the ITE; or

(iv)

for the purposes of the year of assessment 2012 and subsequent years of assessment, any other in‑house training course,

and includes any salary and other remuneration paid to in‑house trainers for conducting such courses and training (based on the hours spent in conducting the courses and training), but excludes salaries and other remuneration or payments of any employee attending or providing administrative support for the courses and imputed overheads like rental and the cost of utilities;

(b)

course fees for employees paid (whether directly or in the form of reimbursement) to an external training provider, including —(i)

registration or enrolment fees;

(ii)

examination fees;

(iii)

tuition fees; and

(iv)

aptitude test fees; and

(c)

rental of training facilities for any course or training referred to in paragraph (a) or (b), expenditure for meals and refreshments provided during any such course or training, and expenditure for training materials and stationery used for any such course or training,

but excludes any accommodation, travelling or transportation expenditure incurred in respect of employees attending or conducting the course or training, or, for the purposes of the year of assessment 2012 and subsequent years of assessment, any expenditure to the extent that it is recovered or recoverable from the employee.

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

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

[37/2014; 24/2016]

(7) Any expenditure incurred during any basis period for a training course referred to in paragraph (a)(iv) of the definition of “qualifying training expenditure” in subsection (6), including the rental of training facilities for the course, expenditure for meals and refreshments provided during the course, and expenditure for training materials and stationery used for the course, that is in excess of $10,000 must be disregarded for the purposes of the computation of a deduction under subsection (1), (2) or (2A).[37/2014]

(8) For the purposes of the year of assessment 2011 and subsequent years of assessment, a reference in this section to qualifying training expenditure excludes any expenditure to the extent that it is or is to be subsidised by grants or subsidies from the Government or a statutory board.[14R

[Act 30 of 2023 wef 30/10/2023]