14Q.
—(1) Subject to this section, where any person carrying on a trade, profession or business has incurred on or after 16th February 2008 expenditure on any renovation or refurbishment works for the purposes of that trade, profession or business (referred to in this section as renovation or refurbishment expenditure), he may claim a deduction in respect of the renovation or refurbishment expenditure in accordance with this section.
[34/2008 wef 16/02/2008]
[Act 29 of 2012 wef 18/12/2012]
(2) Any claim for renovation or refurbishment expenditure under this section shall be made at the time of lodgment of the return of income for the year of assessment relating to the basis period in which the expenditure is incurred or within such further time as the Comptroller may, in his discretion, allow.
[34/2008 wef 16/02/2008]
(3) For the purposes of subsection (1) and subject to subsections (7), (8), (8A) and (9), a deduction is allowed for one-third of the renovation or refurbishment expenditure for the basis period in which the expenditure was incurred and the balance is to be allowed by 2 equal deductions, one for each of the basis periods for the next 2 succeeding years of assessment.
[34/2008 wef 16/02/2008]
[Act 29 of 2012 wef 18/12/2012]
(3A) Notwithstanding subsection (3), for the purposes of subsection (1) and subject to subsections (7), (8), (8A) and (9), where the renovation or refurbishment expenditure is incurred during the basis period relating to the year of assessment 2010 or 2011, a deduction is allowed for the year of assessment 2010 or 2011, as the case may be, for the full amount of the renovation or refurbishment expenditure so incurred, unless a person elects for the deduction to be allowed in accordance with subsection (3).
[34/2008 wef 16/02/2008]
[27/2009 wef 29/12/2009]
[Act 29 of 2012 wef 18/12/2012]
(3B) An election made by a person under subsection (3A) shall be irrevocable.
[34/2008 wef 16/02/2008]
[27/2009 wef 29/12/2009]
(4) For the purposes of this section, any renovation or refurbishment expenditure incurred by any person prior to the commencement of his trade, profession or business shall be deemed to have been incurred by that person on the first day he carries on that trade, profession or business.
[34/2008 wef 16/02/2008]
(5) Where it appears to the Comptroller that a deduction under this section which has been allowed to any person in any year of assessment ought not to have been allowed by virtue of subsection (9)(a), there shall be deemed to be income of the person chargeable to tax, for the year of assessment in which the Comptroller discovers the incorrect claim, an amount equal to such deduction.
[34/2008 wef 16/02/2008]
(6) For the years of assessment 2009 to 2012, a deduction under this section shall be made against income from the trade, profession or business for which the renovation or refurbishment expenditure was incurred after all other deductions under this Part have been allowed.
[34/2008 wef 16/02/2008]
[Act 29 of 2012 wef 18/12/2012]
(7) A person shall not be entitled to —
(a)
a deduction for renovation or refurbishment expenditure under this section where a deduction or an allowance for that expenditure is allowed under any other provision of this Act;
(b)
a deduction for renovation or refurbishment expenditure under this section in any basis period subsequent to the basis period in which the person permanently ceases the trade, profession or business for which purpose the expenditure was incurred;
(c)
a deduction for any amount of renovation or refurbishment expenditure incurred by a person during a specified period that begins with the basis period for the year of assessment 2009 or 2010 that is in excess of $150,000 of such expenditure;
[Act 29 of 2012 wef 18/12/2012]
(d)
a deduction for any amount of renovation or refurbishment expenditure incurred by a person during a basis period within a specified period that begins with the basis period for the year of assessment 2011 that is in excess of —
(i)
in the case of the basis period for the year of assessment 2011, $150,000 of such expenditure;
(ii)
in the case of the basis period for the year of assessment 2012, the amount of such expenditure derived from the formula
where A is the lower of —
(A)
the renovation or refurbishment expenditure incurred by him during the basis period for the year of assessment 2011 which qualifies for the deduction; and
(B)
$150,000; and
(iii)
in the case of the basis period for the year of assessment 2013, the amount of such expenditure derived from the formula
where A has the same meaning as in sub-paragraph (ii); and |
B is the lower of — (A) the renovation or refurbishment expenditure incurred by him during the basis period for the year of assessment 2012 which qualifies for the deduction; and (B) $150,000 – A; |
[Act 29 of 2012 wef 18/12/2012]
(e)
a deduction for any amount of renovation or refurbishment expenditure incurred by a person during a basis period within a specified period that begins with the basis period for the year of assessment 2012 that is in excess of —
(i)
in the case of the basis period for the year of assessment 2012, $150,000 of such expenditure;
(ii)
in the case of the basis period for the year of assessment 2013, the amount of such expenditure derived from the formula
where A is the lower of —
(A)
the renovation or refurbishment expenditure incurred by him during the basis period for the year of assessment 2012 which qualifies for the deduction; and
(B)
$150,000; and
(iii)
in the case of the basis period for the year of assessment 2014, the amount of such expenditure derived from the formula
where A has the same meaning as in sub-paragraph (ii); and |
B is the lower of — (A) the renovation or refurbishment expenditure incurred by him during the basis period for the year of assessment 2013 which qualifies for the deduction; and (B) $300,000 – A; |
[Act 29 of 2012 wef 18/12/2012]
(f)
a deduction for any amount of renovation or refurbishment expenditure incurred by a person during a specified period that begins with the basis period for the year of assessment 2013 or any subsequent year of assessment that is in excess of $300,000 of such expenditure.
[Act 29 of 2012 wef 18/12/2012]
(8) In subsection (7)(c) to (f), “specified period” means a period of 3 consecutive basis periods beginning with the basis period for the year of assessment in which a deduction is first allowed to the person under this section, or any successive period of 3 consecutive basis periods.
[Act 29 of 2012 wef 18/12/2012]
(8A) Subsection (7)(c) to (f) shall apply for the purpose of determining the total amount of the deductions to be allowed to all the partners of a partnership carrying on a trade, profession or business, for the renovation or refurbishment expenditure incurred by the partnership, as if —
(a)
references in those provisions to an amount of renovation or refurbishment expenditure incurred by a person were references to an amount of such expenditure incurred by the partnership; and
(b)
references in those provisions to a specified period were references to a period of 3 consecutive basis periods beginning with the basis period for the year of assessment in which a deduction is first allowed to any partner of the partnership under this section for the renovation or refurbishment expenditure incurred by the partnership, or any successive period of 3 consecutive basis periods.
[Act 29 of 2012 wef 18/12/2012]
(9) No deduction shall be allowed to a person under this section for any renovation or refurbishment expenditure relating to —
(a)
unless otherwise approved by the Minister or such person as he may appoint, any renovation or refurbishment works, the plans of which require the approval of the Commissioner of Building Control under the Building Control Act (Cap. 29);
(b)
any designer or professional fees;
(c)
any antique;
(d)
any type of fine art, including any painting, drawing, print, calligraphy, mosaic, sculpture, pottery or art installation;
[Act 29 of 2012 wef 18/12/2012]
(da)
any works carried out in relation to a place of residence provided or to be provided by the person to his employees, where the expenditure is incurred on or after the date the Income Tax (Amendment) Act 2012 is published in the Gazette; and
[Act 29 of 2012 wef 18/12/2012]
(e)
such other item as may be prescribed by the Minister by regulations.
[34/2008 wef 16/02/2008]