Section 14Q Income Tax Act Singapore (2026): Renovation and Refurbishment Deduction – What Qualifies, the S$300,000 Cap and How to Claim

When a Singapore company spends money to renovate an office, refit a retail unit or install partitions in a leased workshop, most of that spending is not deductible as a normal business expense – it is capital in nature. But Section 14Q of the Income Tax Act 1947 gives businesses a targeted deduction for a defined slice of “renovation and refurbishment” costs, spread over three years of assessment. If you know the rules, you can accelerate a legitimate tax deduction that would otherwise stay locked inside your capital account forever.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

This 2026 guide explains what qualifies as Section 14Q renovation and refurbishment (R&R) expenditure, what does not, how the cap works, and the practical steps to claim it in your corporate tax return.

Why Section 14Q Exists

Ordinary tax rules divide expenditure into two categories:

• Revenue expenditure – day-to-day running costs, deductible under Section 14 in the year incurred.
• Capital expenditure – creates a long-term asset, not deductible under Section 14 but eligible for capital allowances under Section 19 or 19A if it qualifies as “plant or machinery”.

Renovation and refurbishment costs sit in an awkward middle ground. Repainting walls, laying new carpet or fitting decorative partitions is neither ordinary repair nor plant. Section 14Q was introduced in 2008 as a targeted concession to give businesses a modest tax deduction for these commercial-space upgrade costs.

What Qualifies as Section 14Q Expenditure?

Section 14Q(2) defines qualifying R&R expenditure as expenditure on renovation or refurbishment works carried out on a business premises, provided the works do not:

• Alter the structural nature of the building; or
• Come within any other category of deductible expense (revenue or capital allowance).

IRAS publishes an illustrative list of qualifying and non-qualifying items in its e-Tax Guide on Section 14Q. The main qualifying categories are:

• General electrical installation and wiring to supply electricity (not fixed to specific equipment)
• General lighting
• Hot and cold water system (pipes, water tanks, pumps)
• Gas system
• Kitchen fittings (sinks, worktops, plumbing) – restaurants and F&B in particular
• Sanitary fittings (basins, toilets, urinals)
• Doors, gates and roller shutters (excluding steel security doors)
• Fixed partitions (glass or otherwise)
• Wall coverings (paint, wallpaper, tiles)
• Floor coverings (marble, ceramic tiles, wooden flooring, carpet)
• False ceilings and cornices
• Ornamental features or decorations that are not trading stock
• Canopies and awnings
• Windows (including tinting and grilles)
• Fittings for signage on premises (not the signboard itself, which may qualify under Section 19)
• Hacking works to remove existing fittings before new works

What Does NOT Qualify?

Section 14Q expressly excludes:

• Structural works – foundations, load-bearing walls, roofs, columns, extensions.
• Approved fees for architects, professional fees, or design fees not tied directly to qualifying items.
• Items that qualify as plant or machinery under Section 19/19A (furniture, computers, air-conditioning units, refrigerators, kitchen equipment). These get separate capital allowance treatment.
• Renovation of premises used as a place of residence, or not used for the taxpayer’s trade.
• Renovation of a designer showflat or model unit for property developers.
• Antique furniture and works of art (may qualify for Section 19A only).

Practical tip: air-conditioning ducting is a grey area. Fixed ducting integral to the aircon system is typically Section 19A plant. Insulated ceiling panels concealing the ducting are Section 14Q. Get your quantity surveyor to split the invoice.

The Cap: S$300,000 per Three-Year Basis Period

Section 14Q(3) imposes a cap of S$300,000 of qualifying R&R expenditure per three consecutive years of assessment. Once the cap is used, no further Section 14Q deduction is available until a new three-year window opens.

Worked example. Alpha Pte Ltd (December year-end) spends:

• YA 2024 (financial year 2023): S$180,000 on R&R
• YA 2025 (financial year 2024): S$150,000 on R&R
• YA 2026 (financial year 2025): S$120,000 on R&R

Total across the three-year window (YA 2024 – YA 2026) is S$450,000, but only S$300,000 qualifies for deduction under Section 14Q. The excess S$150,000 is permanent tax base loss – it cannot be carried forward and cannot be claimed under any other section. Alpha should time its refits to spread across separate three-year windows where possible.

How the Deduction is Spread

Section 14Q(4) provides that the qualifying R&R expenditure is deductible in three equal instalments over the year of assessment in which the expenditure is incurred and the two immediately following years of assessment.

Continuing the Alpha example – if Alpha incurs S$180,000 in YA 2024, the deductions are:

• YA 2024: S$60,000
• YA 2025: S$60,000
• YA 2026: S$60,000

You cannot elect to take the deduction in a single year. If the company ceases business or the qualifying premises are sold before the three years are up, the unclaimed portion is forfeited – not accelerated into a terminal deduction.

Practical Steps to Claim Section 14Q

Step 1: Get Itemised Invoices

Insist on line-by-line invoices from your contractor. A single “renovation – S$120,000” line item makes it impossible to claim Section 14Q. Ask for a breakdown showing paint, partitions, flooring, plumbing, ceiling, doors and so on.

Step 2: Classify Each Line

Group each line into:

• Section 14Q qualifying R&R
• Section 19/19A plant and machinery
• Section 14 revenue expense (small repairs)
• Non-deductible capital (structural)

Step 3: Check the Three-Year Cap

Total the qualifying R&R across the current YA and the two preceding YAs. If the running total exceeds S$300,000, limit the current-year claim to bring the three-year running total to S$300,000.

Step 4: Compute the One-Third

Claim one-third of the qualifying amount in the current year’s tax computation, and record the remaining two-thirds in a Section 14Q tracking schedule to be claimed in the next two YAs.

Step 5: Enter in Form C-S or Form C

For Form C-S (small companies), enter the current-year deduction under the appropriate deduction row. For Form C, complete the Section 14Q claim schedule. Retain the invoices, contractor breakdown, and calculation working papers for at least 5 years for IRAS audit purposes.

Interaction With Rental Deductions

If you rent the premises, the R&R spending is your own expenditure (not the landlord’s) provided you actually paid for the works. This is common where an F&B tenant fits out a cold shell unit. The Section 14Q claim is available to the tenant, not the landlord.

Reinstatement costs at end of lease – restoring the premises to bare shell – are not Section 14Q. They are typically deductible as a revenue expense under Section 14 provided they were provided for as an obligation in the lease.

Sale, Cessation and Change of Use

Three scenarios trigger loss of unclaimed Section 14Q deductions:

1. Cessation of business – the unclaimed one-third instalments lapse.
2. Sale of the business premises where the taxpayer owned the premises – unclaimed instalments lapse (the buyer does not inherit them).
3. Change of use of the premises from business to non-business (e.g., converted to residential accommodation) – unclaimed instalments lapse.

There is no clawback of previously-allowed instalments; only future instalments are lost.

Common Mistakes We See

1. Claiming Section 14Q on plant items. Air-conditioning units, refrigerators and kitchen equipment go under Section 19/19A. Double-claiming triggers an IRAS assessment.
2. Missing the cap. Companies that refit twice within three years often claim the full amount, ignoring the S$300,000 running total.
3. Attempting to accelerate into one year. The one-third spread is mandatory.
4. Poor invoice documentation. IRAS routinely queries Section 14Q on audit. Without itemised invoices, the claim is disallowed.
5. Claiming architect and professional fees. These are generally not qualifying unless directly tied to a qualifying installation.

How Raffles Corporate Services Can Help

We prepare tax computations for hundreds of Singapore SMEs each year. As part of our year-end close and tax filing service, we review renovation and refurbishment invoices, split them across Section 14Q, Section 19/19A and Section 14, track the S$300,000 three-year cap, and maintain the one-third instalment schedule across multiple years. See our Singapore Corporate Tax 2026 guide for the wider tax filing framework, and our SME chart of accounts template for the recommended ledger structure.

– The Editorial Team, Raffles Corporate Services