Interpretation of Section 15(1) of the ITA (2026)

SCTP TECHNICAL EXPERTS PANEL

Should Section 15(1)(h) and Section 15(1)(m) of the Income Tax Act Prohibit Deduction of GST?

This viewpoint co-authored by Gan Hwee Leng, examines whether sections 15(1)(h) and 15(1)(m) of the Singapore Income Tax Act remain appropriate in restricting income tax deductions for GST borne by GST-registered businesses. Against the backdrop of developments in the GST regime, particularly the 2012 introduction of paragraph 5(4) of the Second Schedule to the GST Act, it questions if the current rules create unequal treatment between GST-registered and non-registered businesses, amongst different categories of expenses and impose “double jeopardy” on GST of certain business expenses. The article considers how these provisions interact, highlights areas of disparity, and suggests that a legislative review would be timely to achieve greater consistency and fairness.

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