Single-source rental example
For YA 2024, gross rent is S$3,000. Direct property tax of S$300 and repairs of S$500 are followed by statutory/regulatory costs of audit S$2,000, secretarial S$1,000 and bank charges S$500. Staff salaries/CPF of S$1,000 are limited to the lower of actual expenditure and 5% of gross rental income, giving S$150. The rental deficit is disregarded: chargeable income and 17% tax are nil. The example does not convert the deficit into a trade loss.
Allocating common expenses
The second example has rent S$2,000 and interest S$200,000. Audit, secretarial and bank costs total S$3,500; actual staff cost S$1,000 is below 5% of total S$202,000 income. Common costs therefore total S$4,500, apportioned by gross income: S$45 to rent and S$4,455 to interest. Rent also has direct property tax S$300 and repairs S$2,000, so its deficit is ignored; taxable net interest is S$195,545. The rental deficit does not reduce the interest source.
Example 2 exemption and rebate
The table deducts S$7,500 on the first S$10,000 and S$92,773 on the remaining S$185,545, leaving S$95,272 after rounding. Tax at 17% is S$16,196.24. Assuming qualification for the YA 2024 rebate cash grant, the additional rebate is 50% of that tax less S$2,000, or S$6,098.12. The resulting payable is S$10,098.12. These are the deck’s YA 2024 assumptions, not a universal rebate for later years.
Foreign-income case: income and expenses
The first case study covers 1 April 2022–31 March 2023 for YA 2024. Income is Singapore one-tier dividends S$35,000, Malaysian dividends S$100,000, Indonesian interest S$24,000, rent S$35,000 and other investment income S$10,000: S$204,000 total. Expenses include exempt-dividend custody S$2,400, rental borrowing interest S$45,000, property tax S$1,600 and repairs S$7,000. Depreciation S$5,000 is not deductible. Audit S$3,000, bank S$500 and secretarial/tax S$2,000 combine with director fees capped from S$60,000 to 5% of total income, S$10,200, producing common expenses S$15,700.
Foreign-income case: separate sources
Dividend income S$135,000 remains exempt after its S$2,400 direct cost and S$10,390 share of common expenses. Malaysian dividends satisfy the section 13(8) assumptions: foreign tax, headline rate over 15% and beneficial exemption. Indonesian interest bears 10% foreign withholding; after S$1,847 common expenses, taxable interest is S$22,153. Rental direct costs S$53,600 plus S$2,694 common costs exceed rent, so the deficit is ignored. Other investment income less S$770 common costs is S$9,230; taxable total is S$31,383.
Foreign credit and final payable
Partial exemption S$18,192 leaves S$13,191, with tax S$2,242.47. Double-tax relief is the lower of Indonesian tax S$2,400 and attributable Singapore tax: S$2,242.47 × 22,153 / (22,153 + 9,230), or S$1,582.94. Remaining tax is S$659.53. With the case’s assumption that no cash grant applies, the 50% rebate is S$329.77 and final tax S$329.76. Credit is limited by net foreign income and attributable tax, not simply the gross overseas withholding.
Trading and investment case
The second case has sales S$750,000 and cost S$345,000, giving trading gross profit S$405,000. Add dividends S$35,000, interest S$24,000 and rent S$40,000, then deduct custody S$2,400, property tax S$1,600, repairs S$7,000, audit S$3,000, director fees S$12,000, depreciation S$1,000, salaries/CPF S$80,000 and secretarial S$2,000: accounting profit S$395,000. Remove separate investment income S$99,000 and add back depreciation and investment-specific costs S$12,000 to get S$308,000 trading adjusted profit. The S$1,000 computer receives 100% capital allowance, leaving S$307,000.
Recombine taxable sources only
The one-tier dividend less custody fees remains exempt. Add interest S$24,000 and rental net S$31,400 to trading income S$307,000 to obtain S$362,400. Partial exemption S$102,500 leaves S$259,900; 17% tax is S$44,183. With cash-grant eligibility assumed, additional rebate is S$20,091.50 and payable S$24,091.50. The deck links to further information on exemptions, rebates and foreign credits.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗