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§ 14Z — Deduction for expenditure for services or secondment to institutions of a public character
14Z.—(1) Subject to this section, where the Comptroller is satisfied that a qualifying person has incurred, during the period between 1 July 2016 and 31 December 2026 (both dates inclusive), qualifying expenditure in respect of —(a)
the provision during that period by a qualifying employee of the qualifying person, of services for the purpose of meeting needs in Singapore and that satisfy subsection (2) to an IPC; or[Act 30 of 2023 wef 30/10/2023]
(b)
the secondment during that period of a qualifying employee of the qualifying person to an IPC to provide services for the purpose of meeting needs in Singapore,
then there is to be allowed to the qualifying person a deduction in accordance with subsection (1A) or (1B), as the case may be.
[32/2019; 27/2021]
[Act 30 of 2023 wef 30/10/2023]
(1A) Where the qualifying expenditure is salary expenditure, the deduction that the qualifying person is to be allowed is as follows:(a)
where —(i)
the expenditure is allowable as a deduction under section 14; and
(ii)
the qualifying person did not opt in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate,
a further deduction equal to 150% of the endorsed amount of the expenditure in addition to the deduction allowed under section 14;
(b)
where —(i)
the expenditure is allowable as a deduction under section 14; and
(ii)
the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate,
a further deduction equal to 150% of the computed salary amount in addition to the deduction allowed under section 14;
(c)
where —(i)
the expenditure is not allowable as a deduction under section 14; and
(ii)
the qualifying person did not opt in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate,
a deduction equal to 250% of the endorsed amount of the expenditure;
(d)
where —(i)
the expenditure is not allowable as a deduction under section 14; and
(ii)
the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate,
a deduction equal to 250% of the computed salary amount.
[32/2019]
(1B) Where the qualifying expenditure is not salary expenditure, the deduction that the qualifying person is to be allowed is as follows:(a)
where the expenditure is allowable as a deduction under section 14 — a further deduction equal to 150% of the endorsed amount of the expenditure in addition to the deduction allowed under that section;
(b)
where the expenditure is not allowable as a deduction under section 14 — a deduction equal to 250% of the endorsed amount of the expenditure.[32/2019]
(2) The services mentioned in subsection (1)(a) must be —(a)
the subject of an arrangement between the qualifying person and the IPC; and
(b)
provided on the instruction or request of the qualifying person.[34/2016]
(3) The maximum amount of qualifying expenditure for which a qualifying person may be allowed the deduction under subsection (1) is $250,000 for each year of assessment.[34/2016]
(4) The maximum amount of qualifying expenditure for which deductions may be allowed under subsection (1) in relation to each IPC is —(a)
$25,000 for the period between 1 July 2016 and 31 December 2016 (both dates inclusive);
(b)
$50,000 for each of the calendar years between 2017 and 2023 (both years inclusive); and
(c)
$100,000 for each of the calendar years between 2024 and 2026 (both years inclusive),
and this is irrespective of the number of qualifying persons claiming the deduction.
[Act 30 of 2023 wef 30/10/2023]
(5) Where 2 or more qualifying persons —(a)
incur qualifying expenditure in relation to one IPC in a period or calendar year which in total exceeds the maximum amount for that period or calendar year under subsection (4); and
(b)
claim a deduction under subsection (1) for such expenditure,
the deduction is to be allowed for such part or parts of the expenditure incurred by such person or persons that the IPC specifies to the Comptroller.
[34/2016]
(5A) Where a qualifying person opted in a declaration under subsection (6) to compute any salary expenditure at the prescribed hourly rate, then the computed salary amount —(a)
is treated as the amount of that expenditure incurred by the qualifying person for the purposes of subsections (3) and (5); and
(b)
is to be used in computing the maximum amount of qualifying expenditure for which deductions may be allowed in relation to the IPC in question for the purposes of subsection (4).[32/2019]
(6) A deduction under subsection (1) may only be allowed for any qualifying expenditure if —(a)
before the date the services are first provided to the IPC in the basis period or the date of commencement of the secondment (as the case may be), the qualifying person makes a declaration, duly endorsed by the IPC and in a form determined by the Minister, regarding —(i)
the nature of the services which the person has arranged with the IPC to be provided to the IPC, or the nature of the secondment, as the case may be; and
(ii)
the expected expenditure;
(b)
within such time as the Comptroller may specify, the IPC submits to the Comptroller a declaration by the qualifying person, in a form determined by the Minister, regarding —(i)
the services provided to the IPC or the secondment to the IPC, as the case may be; and
(ii)
the relevant details specified in subsection (6A); and
(c)
the claim for the deduction is made in the manner determined by the Comptroller.[34/2016; 32/2019]
(6A) In subsection (6)(b)(ii), the relevant details are —(a)
where —(i)
the qualifying expenditure is salary expenditure; and
(ii)
the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate,
the actual number of hours for which the services were provided, as well as the number of those hours (which may be the same number or a smaller number of hours) endorsed by the IPC for the deduction under subsection (1); or
(b)
in all other cases, the amount of the actual qualifying expenditure incurred, as well as the part of that amount (which may be the full amount or a part of it) endorsed by the IPC for the deduction under subsection (1).[32/2019]
(7) A deduction is not allowed under subsection (1) for any expenditure to the extent that it is or is to be subsidised by a grant or subsidy from the Government or a statutory board.[34/2016]
(8) A deduction is not allowed under subsection (1) in relation to the provision of any service or any secondment if there is any agreement or understanding (whether oral or in writing and whether express or implied) that the IPC will confer a benefit of any kind on the qualifying person in return for the provision of the service or the secondment.[34/2016]
(9) A deduction is not allowed under subsection (1) for any expenditure incurred on any activity that is or is to be subsidised, fully or partially, by a matching grant under the Share as One Programme administered by the National Council of Social Services.[34/2016]
(10) The Comptroller may disallow in whole or in part a claim for a deduction under subsection (1) if the Comptroller is not satisfied that the endorsed amount of the expenditure or the endorsed number of hours (as the case may be) is reasonable having regard to the period and nature of the services provided or the period and nature of the secondment (as the case may be), and other relevant circumstances.[34/2016; 32/2019]
(11) If, at any time after a qualifying person has been allowed a deduction under subsection (1) for any qualifying expenditure, the person is reimbursed for any amount of the expenditure, the amount of the deduction that corresponds to the expenditure reimbursed is treated as the person’s income for the year of assessment in which the Comptroller discovers the reimbursement.[34/2016]
(11A) Where —(a)
the qualifying expenditure mentioned in subsection (11) is salary expenditure; and
(b)
the computed salary amount of that expenditure was used to compute the amount of deduction allowed to the qualifying person,
then, for the purpose of that subsection, the amount of the deduction that corresponds to the expenditure reimbursed is to be computed using the formula
where —
(c)
A is the amount of the reimbursement;
(d)
B is the amount of the actual salary expenditure;
(e)
C is the prescribed hourly rate used in computing the computed salary amount; and
(f)
D is the endorsed number of hours used in computing the computed salary amount.[32/2019]
(12) In this section —“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;
“computed salary amount”, in relation to any salary expenditure for the provision of any services by a qualifying employee, means an amount computed using the formula A × B, where —(a)
A is the endorsed number of hours for those services; and
(b)
B is the prescribed hourly rate for those services;
“employee”, in relation to a qualifying person, includes an individual —(a)
who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the qualifying person, and who is deployed to work solely for the qualifying person; and
(b)
whose salary and other remuneration is borne, directly or indirectly, by the qualifying person and not claimed by the central hirer as a deduction against the central hirer’s own income;
“endorsed amount”, in relation to any expenditure, means the amount of the expenditure endorsed by an IPC under subsection (6A)(b);
“endorsed number of hours”, in relation to any services, means the number of hours for which those services are provided, as endorsed by an IPC under subsection (6A)(a);
“IPC” means an institution of a public character as defined in section 2(1);
“prescribed hourly rate”, in relation to the provision of any services by a qualifying employee, means the rate prescribed by rules made under section 7 for those services;
“qualifying employee”, in relation to a qualifying person, means an employee who, at the time of provision of the services or during the secondment (as the case may be), is under a contract of service with the qualifying person or (if the employee is engaged under a central hiring arrangement) the central hirer, but excludes —(a)
where the qualifying person is a partnership, a partner of the partnership; and
(b)
where the qualifying person is a company, a shareholder of the company who is also a director of the company;
“qualifying expenditure” —(a)
in relation to the provision of services by a qualifying employee of a qualifying person to an IPC, means the sum of —(i)
the amount of the salary expenditure incurred by the qualifying person for —(A)
the period during which the employee provided those services that falls within the employee’s working hours; or
(B)
if the period during which the employee provided those services does not fall within the employee’s working hours, the period of the time off in lieu given to the employee; and
(ii)
the amount of the expenditure (not being capital expenditure) incurred by the qualifying person that was necessary for the provision of the services, excluding any private or domestic expense; and
(b)
in relation to the secondment of a qualifying employee of the qualifying person to an IPC, means the sum of —(i)
the amount of the salary expenditure incurred by the qualifying person for the period of the secondment; and
(ii)
the amount of the expenditure (not being capital expenditure) incurred by the qualifying person that was necessary for the provision of services by the qualifying employee to the IPC during the period of the secondment, excluding any private or domestic expense;
“qualifying person” means —(a)
any company or firm (including a partnership) that carries on a trade, profession or business in Singapore;
(b)
a body of persons (whether corporate or unincorporate) that carries on a club or a similar institution and receives from its members (within the meaning of section 11) less than half of its gross receipts on revenue account (including entrance fees and subscriptions); or
(c)
a body of persons (whether corporate or unincorporate) that carries on a trade or professional association in such circumstances that more than half its receipts by way of entrance fees and subscriptions are from Singapore members (within the meaning of section 11) who claim or would be entitled to claim such sums as allowable deductions for the purposes of section 14;
[Deleted by Act 33 of 2022 wef 04/11/2022]
“salary expenditure”, in relation to an employee, means expenditure comprising wages and salary for the employee, but excludes any sum contributed to the Central Provident Fund in respect of the employee, or any bonus, commission, gratuity, leave pay, perquisite, allowance, or any other payment (whether in cash or kind) prescribed by rules made under section 7.[34/2016; 32/2019]
(13) In this section, a qualifying person is treated as having incurred any expenditure, if —(a)
it directly incurs that expenditure for which it is not reimbursed; or
(b)
another person directly incurs that expenditure and the qualifying person is liable to reimburse the other person for it, and the incurring of the expenditure and of the liability both occur in the period between 1 July 2016 and 31 December 2026 (both dates inclusive).[14ZB
[34/2016; 32/2019; 27/2021]
[Act 30 of 2023 wef 30/10/2023]
—(1) Subject to this section, where the Comptroller is satisfied that a qualifying person has incurred, during the period between 1 July 2016 and 31 December 2026 (both dates inclusive), qualifying expenditure in respect of —(a)
the provision during that period by a qualifying employee of the qualifying person, of services for the purpose of meeting needs in Singapore and that satisfy subsection (2) to an IPC; or[Act 30 of 2023 wef 30/10/2023]
(b)
the secondment during that period of a qualifying employee of the qualifying person to an IPC to provide services for the purpose of meeting needs in Singapore,
then there is to be allowed to the qualifying person a deduction in accordance with subsection (1A) or (1B), as the case may be.
[32/2019; 27/2021]
[Act 30 of 2023 wef 30/10/2023]
(1A) Where the qualifying expenditure is salary expenditure, the deduction that the qualifying person is to be allowed is as follows:(a)
where —(i)
the expenditure is allowable as a deduction under section 14; and
(ii)
the qualifying person did not opt in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate,
a further deduction equal to 150% of the endorsed amount of the expenditure in addition to the deduction allowed under section 14;
(b)
where —(i)
the expenditure is allowable as a deduction under section 14; and
(ii)
the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate,
a further deduction equal to 150% of the computed salary amount in addition to the deduction allowed under section 14;
(c)
where —(i)
the expenditure is not allowable as a deduction under section 14; and
(ii)
the qualifying person did not opt in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate,
a deduction equal to 250% of the endorsed amount of the expenditure;
(d)
where —(i)
the expenditure is not allowable as a deduction under section 14; and
(ii)
the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate,
a deduction equal to 250% of the computed salary amount.
[32/2019]
(1B) Where the qualifying expenditure is not salary expenditure, the deduction that the qualifying person is to be allowed is as follows:(a)
where the expenditure is allowable as a deduction under section 14 — a further deduction equal to 150% of the endorsed amount of the expenditure in addition to the deduction allowed under that section;
(b)
where the expenditure is not allowable as a deduction under section 14 — a deduction equal to 250% of the endorsed amount of the expenditure.[32/2019]
(2) The services mentioned in subsection (1)(a) must be —(a)
the subject of an arrangement between the qualifying person and the IPC; and
(b)
provided on the instruction or request of the qualifying person.[34/2016]
(3) The maximum amount of qualifying expenditure for which a qualifying person may be allowed the deduction under subsection (1) is $250,000 for each year of assessment.[34/2016]
(4) The maximum amount of qualifying expenditure for which deductions may be allowed under subsection (1) in relation to each IPC is —(a)
$25,000 for the period between 1 July 2016 and 31 December 2016 (both dates inclusive);
(b)
$50,000 for each of the calendar years between 2017 and 2023 (both years inclusive); and
(c)
$100,000 for each of the calendar years between 2024 and 2026 (both years inclusive),
and this is irrespective of the number of qualifying persons claiming the deduction.
[Act 30 of 2023 wef 30/10/2023]
(5) Where 2 or more qualifying persons —(a)
incur qualifying expenditure in relation to one IPC in a period or calendar year which in total exceeds the maximum amount for that period or calendar year under subsection (4); and
(b)
claim a deduction under subsection (1) for such expenditure,
the deduction is to be allowed for such part or parts of the expenditure incurred by such person or persons that the IPC specifies to the Comptroller.
[34/2016]
(5A) Where a qualifying person opted in a declaration under subsection (6) to compute any salary expenditure at the prescribed hourly rate, then the computed salary amount —(a)
is treated as the amount of that expenditure incurred by the qualifying person for the purposes of subsections (3) and (5); and
(b)
is to be used in computing the maximum amount of qualifying expenditure for which deductions may be allowed in relation to the IPC in question for the purposes of subsection (4).[32/2019]
(6) A deduction under subsection (1) may only be allowed for any qualifying expenditure if —(a)
before the date the services are first provided to the IPC in the basis period or the date of commencement of the secondment (as the case may be), the qualifying person makes a declaration, duly endorsed by the IPC and in a form determined by the Minister, regarding —(i)
the nature of the services which the person has arranged with the IPC to be provided to the IPC, or the nature of the secondment, as the case may be; and
(ii)
the expected expenditure;
(b)
within such time as the Comptroller may specify, the IPC submits to the Comptroller a declaration by the qualifying person, in a form determined by the Minister, regarding —(i)
the services provided to the IPC or the secondment to the IPC, as the case may be; and
(ii)
the relevant details specified in subsection (6A); and
(c)
the claim for the deduction is made in the manner determined by the Comptroller.[34/2016; 32/2019]
(6A) In subsection (6)(b)(ii), the relevant details are —(a)
where —(i)
the qualifying expenditure is salary expenditure; and
(ii)
the qualifying person opted in the declaration under subsection (6) to compute the expenditure at the prescribed hourly rate,
the actual number of hours for which the services were provided, as well as the number of those hours (which may be the same number or a smaller number of hours) endorsed by the IPC for the deduction under subsection (1); or
(b)
in all other cases, the amount of the actual qualifying expenditure incurred, as well as the part of that amount (which may be the full amount or a part of it) endorsed by the IPC for the deduction under subsection (1).[32/2019]
(7) A deduction is not allowed under subsection (1) for any expenditure to the extent that it is or is to be subsidised by a grant or subsidy from the Government or a statutory board.[34/2016]
(8) A deduction is not allowed under subsection (1) in relation to the provision of any service or any secondment if there is any agreement or understanding (whether oral or in writing and whether express or implied) that the IPC will confer a benefit of any kind on the qualifying person in return for the provision of the service or the secondment.[34/2016]
(9) A deduction is not allowed under subsection (1) for any expenditure incurred on any activity that is or is to be subsidised, fully or partially, by a matching grant under the Share as One Programme administered by the National Council of Social Services.[34/2016]
(10) The Comptroller may disallow in whole or in part a claim for a deduction under subsection (1) if the Comptroller is not satisfied that the endorsed amount of the expenditure or the endorsed number of hours (as the case may be) is reasonable having regard to the period and nature of the services provided or the period and nature of the secondment (as the case may be), and other relevant circumstances.[34/2016; 32/2019]
(11) If, at any time after a qualifying person has been allowed a deduction under subsection (1) for any qualifying expenditure, the person is reimbursed for any amount of the expenditure, the amount of the deduction that corresponds to the expenditure reimbursed is treated as the person’s income for the year of assessment in which the Comptroller discovers the reimbursement.[34/2016]
(11A) Where —(a)
the qualifying expenditure mentioned in subsection (11) is salary expenditure; and
(b)
the computed salary amount of that expenditure was used to compute the amount of deduction allowed to the qualifying person,
then, for the purpose of that subsection, the amount of the deduction that corresponds to the expenditure reimbursed is to be computed using the formula
where —
(c)
A is the amount of the reimbursement;
(d)
B is the amount of the actual salary expenditure;
(e)
C is the prescribed hourly rate used in computing the computed salary amount; and
(f)
D is the endorsed number of hours used in computing the computed salary amount.[32/2019]
(12) In this section —“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;
“computed salary amount”, in relation to any salary expenditure for the provision of any services by a qualifying employee, means an amount computed using the formula A × B, where —(a)
A is the endorsed number of hours for those services; and
(b)
B is the prescribed hourly rate for those services;
“employee”, in relation to a qualifying person, includes an individual —(a)
who is engaged by the central hirer of a central hiring arrangement for a group of related parties which includes the qualifying person, and who is deployed to work solely for the qualifying person; and
(b)
whose salary and other remuneration is borne, directly or indirectly, by the qualifying person and not claimed by the central hirer as a deduction against the central hirer’s own income;
“endorsed amount”, in relation to any expenditure, means the amount of the expenditure endorsed by an IPC under subsection (6A)(b);
“endorsed number of hours”, in relation to any services, means the number of hours for which those services are provided, as endorsed by an IPC under subsection (6A)(a);
“IPC” means an institution of a public character as defined in section 2(1);
“prescribed hourly rate”, in relation to the provision of any services by a qualifying employee, means the rate prescribed by rules made under section 7 for those services;
“qualifying employee”, in relation to a qualifying person, means an employee who, at the time of provision of the services or during the secondment (as the case may be), is under a contract of service with the qualifying person or (if the employee is engaged under a central hiring arrangement) the central hirer, but excludes —(a)
where the qualifying person is a partnership, a partner of the partnership; and
(b)
where the qualifying person is a company, a shareholder of the company who is also a director of the company;
“qualifying expenditure” —(a)
in relation to the provision of services by a qualifying employee of a qualifying person to an IPC, means the sum of —(i)
the amount of the salary expenditure incurred by the qualifying person for —(A)
the period during which the employee provided those services that falls within the employee’s working hours; or
(B)
if the period during which the employee provided those services does not fall within the employee’s working hours, the period of the time off in lieu given to the employee; and
(ii)
the amount of the expenditure (not being capital expenditure) incurred by the qualifying person that was necessary for the provision of the services, excluding any private or domestic expense; and
(b)
in relation to the secondment of a qualifying employee of the qualifying person to an IPC, means the sum of —(i)
the amount of the salary expenditure incurred by the qualifying person for the period of the secondment; and
(ii)
the amount of the expenditure (not being capital expenditure) incurred by the qualifying person that was necessary for the provision of services by the qualifying employee to the IPC during the period of the secondment, excluding any private or domestic expense;
“qualifying person” means —(a)
any company or firm (including a partnership) that carries on a trade, profession or business in Singapore;
(b)
a body of persons (whether corporate or unincorporate) that carries on a club or a similar institution and receives from its members (within the meaning of section 11) less than half of its gross receipts on revenue account (including entrance fees and subscriptions); or
(c)
a body of persons (whether corporate or unincorporate) that carries on a trade or professional association in such circumstances that more than half its receipts by way of entrance fees and subscriptions are from Singapore members (within the meaning of section 11) who claim or would be entitled to claim such sums as allowable deductions for the purposes of section 14;
[Deleted by Act 33 of 2022 wef 04/11/2022]
“salary expenditure”, in relation to an employee, means expenditure comprising wages and salary for the employee, but excludes any sum contributed to the Central Provident Fund in respect of the employee, or any bonus, commission, gratuity, leave pay, perquisite, allowance, or any other payment (whether in cash or kind) prescribed by rules made under section 7.[34/2016; 32/2019]
(13) In this section, a qualifying person is treated as having incurred any expenditure, if —(a)
it directly incurs that expenditure for which it is not reimbursed; or
(b)
another person directly incurs that expenditure and the qualifying person is liable to reimburse the other person for it, and the incurring of the expenditure and of the liability both occur in the period between 1 July 2016 and 31 December 2026 (both dates inclusive).[14ZB
[34/2016; 32/2019; 27/2021]
[Act 30 of 2023 wef 30/10/2023]
本頁資料來源：Singapore Statutes Online (AGC)·整理提供：法律人 LawPlayer· lawplayer.com