Business Expenses Records

You are required to keep records and be able to explain ALL expense transactions.

Following are common expenses incurred in the course of business and allowed as deduction under the Singapore tax laws:

(a) Staff remuneration and employer’s CPF contributions
(b) Public transport expenses
(c) Travelling expenses
(d) Entertainment expenses
(e) Payments made to individuals for services rendered

Staff Remuneration and Employer’s CPF Contributions

Staff remuneration includes wages, salaries, bonus, commission and allowances. You need to keep the following records:

(a) Details of employees including full names, identification numbers and job scope
(b) Payment vouchers or remuneration schedule
(c) CPF statements for your claims of employer’s CPF contributions

You may use these records to prepare the Return of Employee’s Remuneration (Form IR8A). Refer to the sample “Staff Remuneration record” at Appendix 4.

Public Transport Expenses

Public transport expenses incurred for business purposes qualify for a tax deduction. The following details should be recorded for each travel:

(a) Date and destination
(b) Mode of transport
(c) Person incurring it
(d) Purpose of travel
(e) Amount incurred

Receipts such as taxi receipts, which substantiate your public transport expenses should be kept. Refer to the sample “Public transport expenses record” at Appendix 5.

Travelling Expenses

Overseas travel expenses incurred for business purposes qualify for a tax deduction. The following details should be recorded for each travel:

(a) Date and destination
(b) Mode of transport
(c) Person incurring it
(d) Purpose and duration of oversea travel
(e) Amount incurred

Receipts or other travel documents that substantiate your travel expenses, including meals and accommodation, should be retained. Refer to the sample “Travelling expenses record” at Appendix 6.

Entertainment Expenses

Entertainment expenses incurred for business purposes qualify for a tax deduction. The following details should be recorded:

(a) Date and place of entertainment
(b) Name of the person(s) entertained
(c) Purpose of entertainment
(d) Person incurring it
(e) Amount incurred

Invoices or receipts that substantiate the entertainment expenses should be kept. Credit card slips or monthly credit card statements alone are not sufficient to substantiate your claims. Refer to the sample “Entertainment expenses record” at Appendices 7A and 7B.

Payments Made To Individuals for Services Rendered

To substantiate payments made to individuals for services rendered (e.g. cleaning fees, free-lance book-keeping and sales commission etc) you are required to include the following details on the payment voucher:

(a) Full name, identification numbers, address of the recipient
(b) Date and nature of payment
(c) Basis of arriving at the quantum paid
(d) Acknowledgment of receipt by the recipient