Tax Treatment of Business Expenses (A-F)

Key requirements

Prescribed borrowing costs can qualify when they substitute for interest or reduce interest costs on qualifying income-producing financing. Foreign digital taxes imposed as income tax are not deductible, whereas turnover taxes may be deductible against taxable income under the general test. Preference share payments characterised as equity dividends are not deductible even if recorded as finance costs. Ordinary donations are added back, with a separate deduction for approved donations; Budget 2026 extends the 2.5-times approved-donation deduction through 2029. Provide the company’s UEN to the approved recipient and check prefilled amounts. The source also addresses carbon credits and employee equity remuneration, which require their own fact-specific treatment.