Rental expenses – Singapore real estate agency
For an expense to be deductible from rental income derived in Singapore, the expense must be incurred: Singapore real estate agency.
- Solely for the purpose of producing the rental income; AND
- During the period of tenancy. Singapore real estate agency.
| Type of Expense |
Claimable Expenses |
Non Claimable Expenses |
| Housing loans | Interest paid on the loan or mortgage taken to purchase the property which is rented out. | 1. Repayments of the principal loan or mortgage amount (monthly instalments). Penalty imposed by banks for late repayment of loans |
| Property Tax | Incurred during the rental period | 1. Incurred outside the rental period. Penalty imposed for late payment or non-payment of property tax |
| Fire Insurance | Premiums paid on fire insurance | Capital sum assured on property |
| Repairs | Repairs done to restore the property to its original state | 1. Initial repairs. Repairs done which results in improvement/additions and alterations. Repairs incurred outside rental period |
| Maintenance | Cost of maintaining the property (e.g. painting, pest control, monthly maintenance charges to management corporations) | Cost of renovation, additions, alterations to the property (e.g. extension of car porch, construction of drains, cementing of walls and floors, installation of window grilles) |
| Costs of securing tenant | 1. Agent’s commission, advertising, legal expenses for getting subsequent tenants. Cost of renewing a lease or changing a tenant. Agent’s commission, advertising and legal expenses for getting the first tenant of a subsequent property is deductible against the rental income of that property. | Agent’s commission, advertising and legal expenses for getting the first tenant. Singapore real estate agency. |
| Costs of supervision and rent collection | This expense is not deductible as it is incurred after the income is earned.However, as a concession, if you rent out a number of properties and incur costs in engaging a third party (e.g. property agent / company) to supervise the properties and to collect rent on your behalf, a sum not exceeding 5% of the gross rent or the actual amount spent, whichever is less, may be considered. Each case will be considered on its own merits. | |
| Furniture and Fittings | 1. Replacements of furnishings (e.g. furniture, fixtures, electrical appliances) to its original state. Hiring of furniture | 1. Depreciation of furnishings (e.g furniture, fixtures, electrical appliances). New/Improvements/Additions made to furnishings (e.g. furniture, fixtures, electrical appliances) |
| Internet charges/ expenses | Paid on behalf of tenant (as long as not reimbursed by tenant subsequently). | Paid on behalf of tenant, but reimbursed by tenant subsequently. |
| Utility expenses | Paid on behalf of tenant (as long as not reimbursed by tenant subsequently). | Paid on behalf of tenant, but reimbursed by tenant subsequently. |
Please click here to search for Singapore real estate agency
