Singapore Taxation
Metigy Ltd is a newly listed company on the Singapore Stock Exchange. It specialises in the development of artificial intelligence. The company relies on you as their tax adviser to assist them with their taxation obligations in Singapore. The company is due to lodge the income tax return and it needs taxation advice on the following items in its operating statements. During the year ended 31 December 2021 the company incurred the following expenses: 1. Payment of $12,000 to an employment agency who found key staff when there was a shortage of qualified staff available in Singapore 2. The company purchased three new high speed computers at a cost of $8,000 each 3. The company prepaid 12 months of IT support fees on 1 May 2021 . The prepaid fees were $10,800 in total for the 12 months (\$900 per month). During the year ended 31 December 2021, the company received 1. A grant from the Singapore government for establishing a new business in Singapore. The amount was $100,000 2. Sales income of $150,000. Of this amount $30,000 was from an overseas customer based in Canada. REQUIRED: You are required to advise the company whether the amounts above are deductible or assessable as income for the year of assessment 2022. Where appropriate you must calculate the amount that is deductible You must refer to the relevant legislation or case law that supports your conclusion. Metigy Ltd is a newly listed company on the Singapore Stock Exchange. It specialises in the development of artificial intelligence. The company relies on you as their tax adviser to assist them with their taxation obligations in Singapore. The company is due to lodge the income tax return and it needs taxation advice on the following items in its operating statements. During the year ended 31 December 2021 the company incurred the following expenses: 1. Payment of $12,000 to an employment agency who found key staff when there was a shortage of qualified staff available in Singapore 2. The company purchased three new high speed computers at a cost of $8,000 each 3. The company prepaid 12 months of IT support fees on 1 May 2021 . The prepaid fees were $10,800 in total for the 12 months (\$900 per month). During the year ended 31 December 2021, the company received 1. A grant from the Singapore government for establishing a new business in Singapore. The amount was $100,000 2. Sales income of $150,000. Of this amount $30,000 was from an overseas customer based in Canada. REQUIRED: You are required to advise the company whether the amounts above are deductible or assessable as income for the year of assessment 2022. Where appropriate you must calculate the amount that is deductible You must refer to the relevant legislation or case law that supports your conclusion
