If your Singapore company has just spent money refreshing a shopfront, retrofitting an office, or fitting out a new café, the cost is unlikely to qualify as a tax-deductible “repair” — because the works are usually capital in nature. The good news is that Section 14N of the Income Tax Act 1947 (formerly Section 14Q) gives businesses a specific deduction for renovation and refurbishment (R&R) expenditure. It is one of the most under-claimed reliefs in Singapore.
This guide walks directors and finance teams through what Section 14N covers, what it excludes, the $300,000 cap, the choice between claiming over three Years of Assessment (YAs) or accelerating into one, and how to document the claim so it survives an IRAS review.
What Section 14N (formerly 14Q) Actually Covers
Section 14N allows a tax deduction for capital expenditure incurred on R&R works carried out on business premises, provided the works do not affect the structure of the premises. Without Section 14N, this kind of spending would be locked away as non-deductible capital expenditure because plant and machinery rules under Section 19/19A do not generally extend to fit-out items like partitions, false ceilings, lighting installations and flooring.
Examples of qualifying R&R expenditure include:
- General electrical installation and wiring to supply electricity
- General lighting
- Hot/cold water system (pipes, water tanks, etc.)
- Gas system
- Kitchen fittings (sinks, pipes, etc.)
- Sanitary fittings (toilet bowls, urinals, plumbing, toilet cubicles, vanity tops, washbasins, etc.)
- Doors, gates and roller shutters (manual or automated)
- Fixed partitions (glass or otherwise)
- Wall coverings (such as paint, wall-paper, etc.)
- Floorings (marble, tiles, laminated wood, parquet, etc.)
- False ceilings and cornices
- Ornamental features (e.g. fountains and aquariums, but not antiques and fine art)
- Canopies and awnings
- Window blinds and curtains
- Professional fees (architectural, surveying, design fees, etc., incurred in connection with the qualifying works)
The legislative anchor is the Income Tax Act 1947, and IRAS publishes a detailed e-Tax Guide on Section 14N with worked examples.
What Is NOT Deductible Under Section 14N
Three categories of expenditure fall outside the section and need to be carved out from any claim:
1. Works That Affect the Structure of the Premises
Anything that alters the structure — knocking down load-bearing walls, hacking concrete columns, extending floor plates — is excluded. The deduction is for “renovation and refurbishment”, not reconstruction.
2. Items Already Claimable as Capital Allowances
If an item qualifies as plant or machinery under Section 19 or 19A, you cannot also push it through Section 14N. Air-conditioning units, lifts and escalators, kitchen equipment, computers, and most movable assets follow the Section 19/19A regime. For a refresher, read our guide to Capital Allowances in Singapore: Section 19, 19A and Industrial Building Allowance.
3. Designer / Antique / Showpiece Items
Antiques, designer furniture, fine art and other showpiece items used purely for display are excluded. So are works that are “designer items” rather than ordinary fit-out.
The $300,000 Cap (Rolling 3-Year Basis)
The deduction is capped at $300,000 of qualifying R&R expenditure for every three consecutive YAs, starting from the YA in which the expenditure is first incurred. The cap is on expenditure, not on the tax deduction itself.
For most businesses, the cap runs as a rolling three-year window. If a café spends $260,000 on R&R in YA 2025, $80,000 in YA 2026 and $50,000 in YA 2027, the first $300,000 is deductible across that 3-YA window, and $90,000 is permanently non-deductible (subject to how the company chooses to claim — see below).
Two Ways to Claim: 3-Year Spread vs Accelerated 1-Year
From YA 2024, taxpayers have a choice — and the choice can be powerful for cash flow:
| Option | How It Works | When to Use |
|---|---|---|
| Default: 3 YAs | Qualifying R&R expenditure is written off over three consecutive YAs in equal portions, starting from the YA of expenditure. | Best when the company expects steady taxable profits over the next three years. |
| Accelerated: 1 YA | Full qualifying R&R expenditure is deductible in the same YA the expenditure is incurred. Available from YA 2024 onwards (Budget 2024 enhancement). | Best when the company has a one-off spike in profits, or when a startup wants to maximise loss carry-forward. |
The election applies to the whole basis period — you cannot split R&R expenditure incurred in the same YA between the two options. Once chosen, the election is irrevocable for that YA.
Worked Example: Café Fit-Out
Acme F&B Pte Ltd opens a new outlet in YA 2026 and incurs:
- $180,000 on partitions, wall coverings, lighting, flooring, sanitary fittings → qualifies under Section 14N
- $95,000 on kitchen equipment and air-conditioning → qualifies as plant under Section 19A (one-year write-off election available)
- $40,000 on antique decorative pieces in the dining area → not deductible
If Acme elects the default 3-YA spread, it deducts $60,000 in each of YA 2026, YA 2027 and YA 2028 under Section 14N. If it elects the accelerated option, it deducts the full $180,000 in YA 2026 — useful if YA 2026 has a large opening-year profit, or if Acme wants to lock in trading losses for future use.
Interaction With the Start-Up Tax Exemption and Loss Carry-Forward
Section 14N deductions reduce assessable income before the Singapore corporate tax exemptions are applied. For a new company in its first three YAs, this can interact with the Start-Up Tax Exemption (SUTE) scheme — sometimes it is worth deferring the R&R deduction to a later YA when SUTE benefits are not “wasted” against already-exempted profits.
Unutilised Section 14N deductions can be carried forward as trade losses, subject to the shareholding (substantial change) test and same-business test. For details on Singapore loss rules, see our piece on Singapore Group Relief: Section 37C Guide to Transferring Losses.
Documentation IRAS Will Want
If your claim is queried, IRAS will ask for the following — keep these as part of your accounting records for at least five years from the relevant YA:
- Detailed contractor invoices, broken down by line item (partitions, flooring, lighting, plumbing, etc.)
- Tenancy agreement or proof of beneficial occupation of the business premises
- Before-and-after photographs of the works
- Architect / interior designer fee notes, separately identifiable from the contractor’s bill
- Board resolution or written instruction authorising the R&R works
- Section 14N schedule showing the split between qualifying and non-qualifying spend, and the running 3-YA cap utilisation
For an overview of when Singapore companies must file annual financial statements and tax returns, read our Form C-S vs Form C vs Form C-S Lite guide and the Singapore Company Compliance Calendar 2026.
Common Mistakes That Cost Companies the Deduction
- Including structural works in the claim. Hacking, structural reinforcement, and extension works are not Section 14N items. Carve them out cleanly in the schedule.
- Double-claiming. Air-conditioning, lifts and similar items already attract Section 19A allowances — never push them through Section 14N as well.
- Missing the 3-YA spread. If you do not elect the accelerated option and the company has no income in YA 1, you may struggle to use the carried-forward loss if shareholding subsequently changes by more than 50%.
- Skipping the cap tracking. The $300,000 cap is per business and is rolling. Multiple outlets and successive landlord-required refurbishments need a master schedule.
- Treating designer items as fit-out. Antiques and signature pieces add ambience but are excluded — list them separately.
How Raffles Corporate Services Helps
R&R deductions are a recurring blind spot at year-end because the conversation usually sits between the company’s interior designer, the landlord and the in-house finance team — none of whom are tax specialists. Our accounting and tax team prepares Section 14N schedules as part of the year-end tax computation, advises on the 3-YA vs 1-YA election, and keeps the rolling cap up to date across multiple sites.
We also coordinate the wider tax pack: withholding tax, transfer pricing documentation, and the corporate tax return itself.
For F&B operators in particular, the Section 14N claim usually pairs with PSG and BizAdapt grant applications for related digitalisation works. Our team prepares both in tandem — see our overview of EDG vs PSG vs MRA to pick the right grant track.
— The Editorial Team, Raffles Corporate Services