The IRAS has posted an updated e-Tax guide on the tax treatment on Director's Fees and Bonuses and a new e-Tax on the Deduction for Statutory and Regulatory Expenses on the 12th of September 2014.
The update for the tax treatment on Director's Fees and Bonuses updates paragraph 6.1 of the Income Tax Act (ITA) to clarify that a company may claim deduction for director’s fees and employees’ bonuses only when its liability to pay such fees and bonuses actually arises and also paragraph 7.1 of the ITA such that companies
need not submit the documents/information to IRAS but to prepare and retain them.
The e-Tax guide on the treatment of Statutory and Regulatory expenses disallows the following expenses for tax deductions. They are expense that is capital in nature; fine, penalty or composition amount in relation to a composition of an offence under any written law of Singapore or another country; expense to defend against charges of non-compliance with any statutory and regulatory requirement; and expense in relation to appeals to the courts or any quasi-judicial body (e.g. the Income Tax Board of Review)
For more information on the two e-Tax guides, please refer to the e-Tax guide below:
The update for the tax treatment on Director's Fees and Bonuses updates paragraph 6.1 of the Income Tax Act (ITA) to clarify that a company may claim deduction for director’s fees and employees’ bonuses only when its liability to pay such fees and bonuses actually arises and also paragraph 7.1 of the ITA such that companies
need not submit the documents/information to IRAS but to prepare and retain them.
The e-Tax guide on the treatment of Statutory and Regulatory expenses disallows the following expenses for tax deductions. They are expense that is capital in nature; fine, penalty or composition amount in relation to a composition of an offence under any written law of Singapore or another country; expense to defend against charges of non-compliance with any statutory and regulatory requirement; and expense in relation to appeals to the courts or any quasi-judicial body (e.g. the Income Tax Board of Review)
For more information on the two e-Tax guides, please refer to the e-Tax guide below:
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