EXPLANATORY NOTES TO FORM IRIN 301 FOR YEAR OF ASSESSMENT 2018
Essential information to note before completing Form IRIN 301ooThis Form is to be submitted together with Form C, except for dormant companies and companies servicing only related parties with “Cost-Plus
Mark-Up” basis of assessment.
All boxes must be completed. If any item is not applicable, enter “0”. All figures must be right-aligned.

Part A: Deductions Claimed Against IncomeBox 1

Medical Expenses

oDeductible medical expenses (including cash allowance in lieu of medical expenses and medicalinsurance) are capped at 1% of total employees’ remuneration. However, the cap is increased to 2% of
total employees’ remuneration if the company has:
 provided its employees with inpatient medical insurance benefits in the form of a Portable Medical
Benefits Scheme, a Transferable Medical Insurance Scheme or a Shield plan; or made ad-hoc
contributions to its employees’ Medisave accounts (subject to a cap of $1,500 per employee per year)
during the relevant basis period; and met the qualifying conditions under the respective scheme/ plan.
The additional tax deduction for medical expenses beyond 1% of total employees’ remuneration excludes
premiums for Riders on Shield plans that cover deductibles and co-payments.
Companies claiming medical expenses in excess of 1% of total employees’ remuneration must declare in
their tax computations that conditions under Sections 14(6A), (6B) and (6C) of the Income Tax Act (ITA)
are met.
For more information, please refer to Sections 14(5) to (8) of the ITA and IRAS’ website under Home >Businesses > Companies > Working out Corporate Income Taxes > Business Expenses, click on “SelectSubheading” and select “Non-Deductible Business Expenses” followed by “Medical Expenses”.

oooBoxes 3&4

Participation in approved
local trade fairs –Section 14B
Participation in overseas
trade fairs, overseas
business development
and investment study
trips/ missions – Section
14B/ 14K

Box 6

Research andDevelopment (R&D)
Activities – S14DA(1)oBusinesses may claim automatic double tax deduction on up to $100,000 of qualifying expenses incurredin the following four qualifying activities for each YA, without approval from IE Singapore of STB:a) Overseas business development trips/ missions;b) Overseas investment study trips/ missions;c) Participation in overseas trade fairs; andd) Participation in approved local trade fairs.
Enter the relevant amount incurred for the qualifying activities in Boxes 3 and 4 accordingly, subject to thecap of $100,000 for all the four qualifying activities.
For more information, please refer to IRAS’ website under Home > Schemes > Businesses > Double Tax
Deduction for Internationalisation Schemes.

oooo

Qualifying expenditure comprising staff costs and consumables incurred on R&D activities conducted inSingapore during the basis periods relating to YA 2009 to YA 2018 will qualify for an additional 50%
deduction under Section 14DA(1) of the Income Tax Act. To support businesses to build their own
innovations, the R&D additional deduction of 50% will be increased to 150% for such qualifying R&D
expenditure incurred during the basis periods for YA 2019 to YA 2025 on qualifying R&D projects
performed in Singapore.
For more information, please refer to IRAS’ website under Home > Businesses > Companies > Working
out Corporate Income Taxes > Business Expenses, click on “Select Subheading” and select “NonDeductible Business Expenses” followed by “Research and development”.

Part B: Current Year Capital Allowances Claimed as per Tax Computation
Boxes
16 to 19

Capital Allowances
claimedEnter the total of IA + AA + BA – BC, including Enhanced Allowances claimed under the Productivity andInnovation Credit (PIC)/ PIC+ Scheme [Section 19A(2BAA) of the Income Tax Act]. If the amount is negative
as a result of BC, enter an “X” in the box on the extreme left for paper filing, or add a negative sign for eFiling.
Section1919A(1)19A(2), 19A(3)& 19A(4)19A(10)19A(10A)
19B

Description
Allowances for plant or machinery (over the prescribed tax useful life)
Accelerated allowances of 3 years’ write-off for plant and machinery
Accelerated allowances of 100% write-off for computer, prescribed automationequipment and robots, etc.
Accelerated allowances of 100% write-off for website
Accelerated allowances of 100% write-off for items of plant or machinery costing
no more than $5,000 each
Writing-down allowances for intellectual property rights

Part C: Foreign Tax Paid on Foreign Income Received in Singapore
If the rows provided are insufficient, please enter the top 5 highest amounts in rows 20a to 20e and consolidate all remaining amounts in the last row(20f). For the consolidated amount, please select the most representative option for <Nature of Income> and “Other countries not elsewhereclassified” (999) for <Country>.
Boxes
20a to20f

Nature of Income

Enter one of the following codes in the boxes provided:
Section10(1)(a)10(1)(a)10(1)(d)10(1)(d)10(1)(f)10(1)(f)10(1)(e)10(1)(g)Country

IRIN 301

Description
Trade/ Business income derived from professional, consultancy and others
Trade/ Business profit derived from branches outside SingaporeDividends
Interest/ Discounts
Rent, Premiums and any other Profits arising from Property
Royalties
Any pension, charge or annuity [includes trust distribution (e.g. REITdistribution)]
Income not falling under A to E above

Refer to the list of country codes in Appendix 1A of the Explanatory Notes to Form C.

Page 1CodeAP
BCDEFF

EXPLANATORY NOTES TO FORM IRIN 301 FOR YEAR OF ASSESSMENT 2018
Part D: Exemption on Foreign Dividends, Branch Profits and Service Income Received in Singapore
If the rows provided are insufficient, please enter the top 6 highest amounts. Where there are more than 6 rows, the company need not enter details
for the remaining amounts.
Boxes
21a to21f

Headline tax rate (%)

Headline tax rate of a foreign jurisdiction refers to the highest corporate tax rate of the foreign jurisdiction
specified in the main tax legislation or the highest tax rate stipulated in the relevant special legislation, as thecase may be. It need not be the actual rate of tax imposed by the foreign jurisdiction on the specified foreign
income. Please refer to IRAS’ e-Tax Guide “Tax Exemption for Foreign-Sourced Income (Second Edition)” fordetails.

Income subject to tax inthe foreign jurisdiction

For foreign income received in Singapore to be exempted, income tax must have been paid or be payable in
the foreign jurisdiction from which the foreign income is received. For dividends received, tax paid or payable
includes income tax paid or payable in that foreign jurisdiction by the payer company on its income out of which
the dividend is paid.
As a tax concession, where the foreign income is exempted from tax in the foreign jurisdiction from which it isreceived as a direct consequence of that foreign jurisdiction granting a tax incentive for carrying out substantive
business activities in that jurisdiction, the “subject to tax condition” will be considered as met. To enjoy thisconcession, relevant documents must be retained and submitted to IRAS upon request. For details, pleaserefer to IRAS’ website under Home > Businesses > Companies > Filing Taxes (Form C-S/ C) > Guidance on
Completing Form C-S/ C, click on “Select Subheading” and select “Before Completing Form C-S/ C” followedby “Documents to Prepare when Filing Form C-S/ C. Details are also available in IRAS’ e-Tax Guide “Tax
Exemption for Foreign-Sourced Income (Second Edition)”.

Part E: Productivity and Innovation Credit (PIC)/ PIC+ Scheme
Example 1 (Enhanced deduction claim with partial cash conversion):
Company (a qualifying SME) spent $2,100,000 in YA 2018 on employees’ external training after 1 Aug 2016. The company received a government
grant of $100,000 and has opted to convert $50,000 of the qualifying expenditures into a cash payout. The company did not make any PIC claim in YA
2016 and YA 2017.
YA 2018
Qualifying cost on employees’ external training [$2,100,000 - $100,000 (Government grant)]
Less: Qualifying cost converted into cash payout @Remaining qualifying cost for enhanced deduction @@Total cost incurred after deducting government grants and amounts converted to cash payout
Enhanced deduction to be claimed against business income ($1,750,000 x 300%)

S$2,000,000(50,000)
1,950,000
1,950,000
5,250,000(capped at $1,750,000)

Box 23b is to be completed as follows:
Total cost incurred(after netting off government grants received andexcluding amounts converted to Cash Payout)
S$23b

External and certified in-house training 23b
Section 14R

1 9 5 0 0 0 0

Enhanced Deductions/ Allowances
claimed/ to be claimed(300% of qualifying cost or 250% of qualifying costfor R&D conducted in Singapore)S$

5 2 5 0 0 0 0

For details on the scheme, please refer to IRAS’ website under Home > Schemes > Productivity and Innovation Credit Scheme (PIC), click on “SelectSubheading” and select “PIC Benefits”.
@The company will receive a cash payout of $20,000 (i.e. $50,000 x 40%). For PIC qualifying expenditure incurred after 1 Aug 2016, the cash payout
conversion rate would be 40%.

@@

Qualifying cost for PIC is claimed based on a combined cap of $1,800,000 (i.e. $600,000 x 3) for YA 2016 to YA 2018 for each activity. Any further
expenditure incurred in excess of the combined cap will only qualify for 100% deduction.
Under the PIC+ Scheme, from YA 2015 to YA 2018, qualifying SMEs that invest in the 6 qualifying activities under the PIC Scheme can enjoy
400% tax deductions/ allowances on an additional $200,000 in expenditure for each qualifying activity per YA. This brings the expenditure cap for
qualifying SMEs from $400,000 to $600,000 per qualifying activity per YA.

Example 2 (Enhanced deduction claim with full cash conversion):
Company spent $10,000 in YA 2018 on employees’ training and opted to convert the full qualifying cost into a cash payout.
Box 23b is to be completed as follows:
Total cost incurred(after netting off government grants received andexcluding amounts converted to Cash Payout)
S$23b

External and certified in-house training 23b
Section 14R

Box 26

Research anddevelopment activities –Sections 14D, 14DA

Enhanced Deductions/ Allowances
claimed/ to be claimed(300% of qualifying cost or 250% of qualifying costfor R&D conducted in Singapore)
S$00

Enter only qualifying expenditure comprising staff costs and consumables incurred on the research anddevelopment activities.

Part F: Exemption of Gains from Disposal of Ordinary Shares in Another Company under Section 13ZBox 28IRIN 301

Gains from disposal ofshares

For gains/ profits from disposal of ordinary shares in another company qualifying for tax exemption underSection 13Z, the company must retain the requisite information and submit to IRAS upon request. For details,please refer to IRAS’ website under Home > Businesses > Companies > Filing Taxes (Form C-S/ C) >Guidance on Completing Form C-S/ C, click on “Select Subheading” and select “Before Completing Form CS/ C” followed by “Documents to Prepare when Filing Form C-S/ C”.
Page 2

EXPLANATORY NOTES TO FORM IRIN 301 FOR YEAR OF ASSESSMENT 2018
For the specified qualifying conditions, please refer to IRAS’ e-Tax Guide “Income Tax: Certainty of Nontaxation of Companies’ Gains on Disposal of Equity Investments (Second Edition)”.
The above information is intended for better general understanding and is not intended to comprehensively address all possible issues that may arise. While every
effort has been made to ensure that the above information is consistent with existing policies and practice, should there be any changes, IRAS reserves the right tovary its position accordingly. For the latest information, please refer to IRAS’ website at www.iras.gov.sg.

IRIN 301

Page 3