Rental Income and Expenses

The rental income that a property owner received from their tenant is a taxable income and therefore subject to income tax in Singapore. In order to arrive at the taxable net rental income, a property owner (whether an individual, company or another form of legal entity) is required to declare the gross rent received and deductible expenses incurred in the previous year for each of their property.

Rental income includes rental of the premises, maintenance, furniture, and fittings.

Allowable expenses incurred solely for producing the rental income and during the period of tenancy can be claimed and deducted against the gross rental income. Allowable expenses are interest paid on housing loans, property tax, fire insurance premiums, repairs and maintenance of the property, cost of securing tenants (from second tenant onward), furniture and fittings, internet, and utility expenses.

Please do take note that some expenses are not allowed as tax deductions. Examples include repayments of the principal loan amount, late payment penalties imposed by banks, agent’s commission for the first tenant, renovation costs, etc.

Therefore, please remember to report your rental income in your annual tax return. Penalties may be imposed for failure to submit rental income returns.

For more details, get in touch with a certified public accountant (CPA) in Singapore.


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ACRA Cancels Registration of Filing Agent and Qualified Individual for AML/CFT Breaches

The Accounting and Corporate Regulatory Authority (ACRA) had cancelled the registrations of filing agent (RFA) and qualified individual (RQI) on 18 January 2024. The registrations were cancelled in view of breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) controls under the ACRA (Filing Agents and Qualified Individuals) Regulations 2015 (the “ACRA Regulations”).

Some of the basic AMT/CFT controls that a RFA and RQI are required to exercise are as follows:

(a) perform additional customer due diligence measures when a customer is not physically present during onboarding;

(b) inquiring if there exists any beneficial owner in relation to some of its customers; and

(c) perform risk assessments i

RQIs and RFAs provide corporate secretarial services for business entities, such as helping customers to incorporate companies, file annual returns and fulfil other filing requirements under the Companies Act 1967 or other Acts under ACRA’s purview. RQIs and RFAs are required to perform customer due diligence measures in accordance with the ACRA Regulations, and conduct their business in such a manner as to guard against the facilitation of money laundering and the financing of terrorism. RQIs and RFAs must also satisfy statutory requirements such as being fit and proper persons, to be registered or continue to be registered.

RQIs and RFAs who breach their statutory obligations may be subject to enforcement actions, such as financial penalties of up to $10,000 or $25,000 per breach respectively or have their registrations with ACRA suspended or cancelled.

Therefore, RQIs and RFAs play an important role in helping to detect and combat illicit activities.

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