Edition, scope and qualifying deductions
The ninth edition dated 30 January 2026 explains section 37D carry-back, introduced from YA 2006. Persons include companies, sole proprietors/partners (including LLP/LP), clubs/associations, trustees and executors carrying on trade, business, profession or vocation. Claim current unabsorbed capital allowances (sections 16, 17,18 B/18 C,19,19 A–D,20) and trade losses, not old balances, donations or investment allowances. Normally carry to the immediately preceding YA only. Enhanced three-YA/estimated claims were specifically for YA 2020/2021, not a permanent rule.
Business/shareholder tests and waiver
CA requires continuation of the same business, but losses do not: a first business basis with S$20,000 CA and S$50,000 losses may carry only the losses. Companies additionally need common shareholders holding at least 50% in the company or ultimate parent. For YA 2018 CA compare 1 January 2018/31 December 2017; losses incurred in 2017 compare 1 January/31 December 2017. A non-tax-motivated substantial change can receive waiver, but then deduction is restricted to the same trade/business income.
Cap and non-SGD functional currency
Carry the lowest of actual QD, prior-YA assessable income and S$100,000. Excess may carry forward subject to its applicable tests. Prior assessable S$60,000 against QD S$72,000 gives S$60,000 carry-back/S$12,000 forward. For non-SGD currency use the loss year’s rate for the cap. USD loss S$150,000-equivalent nominal US$150,000 with YA 2018 rate 1.3749 gives US$72,733 carry-back and US$77,267 forward. Prior YA 2017 profit US$300,000 at 1.3833 is S$414,990; the carried US$72,733 translates there to S$100,612, leaving US$227,267/S$314,378. The SGD deduction can differ from the cap because translation years differ.
Deduction order and rate adjustment
Use CA before losses; apply first to same trade, then other trades proportionately, then other sources proportionately. If multiple trades exceed the cap, allocate proportionately. Cross-rate section 37A adjustment applies to companies and section 43H bodies from YA 2023. Normal-equivalent QD cap is A+B: A normal-rate deductions plus B concessionary-rate deductions divided by normal/concessionary rate factor. Normal rate in this guide is 17%. Group transfer occurs before carry-back; preceding assessable income is after ordinary CA/losses/donations, group claims and relevant deductions but before PTE/SUTE.
Personal relief and limited-partner restrictions
Carry-back can reduce prior earned-income relief, working mother child relief and self-employed CPF deductions, which must be recalculated. LLP/LP limited partners’ relevant deductions against other income, cumulatively including past years, cannot exceed contributed capital at end of the QD year’s basis period, not the prior year. Restricted excess can only move forward against income from the same LLP/LP subject to conditions.
Excluded activities
Wholly exempt trades such as pioneer activity cannot carry QD against exempt or taxable income. Ring-fenced activities keep their restrictions, including section 10C finance leasing and 10 F motor-car hiring, and cannot offset other sources. Section 10D investment-making QD is disregarded, so cannot carry back. EII startup-share disposal/liquidation losses are capital and excluded; the referenced EII provision was repealed 19 April 2016.
Irrevocable election and company documents
Companies, bodies, trustees and executors elect no later than current-return filing; individuals within 30 days of service of current NOA. Election is irrevocable. Companies must use FormC, declare in return/computation, and separately submit revised prior computation through Submit Document under Revised TC and supporting schedules for Loss-Carry back relief and Income not previously reported. Prior return/accounts/computation must already have been filed, except the additional prior-document requirement for prior C-S filers. Guide paragraphs 9.3–9.6 and 9.9 have legal force.
Other applicants, refunds and reassessment
Individuals/partners sign the prescribed form. If electing before/with filing, sole-proprietor revenue≥S$500,000 needs current certified accounts and both YA computations; below that and partners only state QD/share. Partners ensure precedent partner already supplied certified accounts and computation, or provisional versions if unfinished; failure can invalidate election. Post-return election within 30 days needs signed form only. Bodies/trustees/executors need current provisional/final accounts/computation and revised prior computation, with prior return/audited-certified accounts already filed. Refund within 3 months of election nets all unpaid tax, including property tax. Excess deductions can be reassessed within 5 years after priorYA end: YA 2018 loss 80,000 reduced 57,000 yields 23,000 additional YA 2017 assessment by 31 Dec 2022.
Annex A: amount and corporate refund
ABC YA 2018 CA 35,000 first offsets rent 24,000, leaving 11,000 carry-back; losses 70,000 also carry, while investment allowance 25,000 moves forward. Prior profit 220,000 lessCA 40,000 plusrent 30,000, donation 2,500 on actual 1,000 and IA 40,000 leaves 167,500. Carry 81,000 reduces it 86,500. Historical PTE 86,250/45,750 leaves 81,250/40,750; tax 13,812.50/6,927.50; YA 2017 50% rebate capped 25,000 yields 6,906.25/3,463.75, discharge 3,442.50. All annex rates and relief assumptions belong to those historical YAs.
Annex B: multiple trades
Guan has YA 2018 X CA 80,000, Y profit 50,000 lessCA 70,000 and Z CA 60,000, net CA 160,000. Employment 24,000/rent 12,000 leave 124,000; carry 100,000 and forward 24,000, leaving X/Z losses 60,000/35,000 forward. Carry CA allocation is X 50,000,Y 12,500,Z 37,500; forward 12,000/3,000/9,000. Prior X net 45,000,Y 50,000,Z−12,000, Z loss 6,000, employment 40,000/rent 18,000 gives 135,000; carry 100,000 leaves 35,000. Reliefs earned 1,000/spouse 2,000/child 4,000/CPF 8,000 leave 20,000 instead of 120,000, refund 7,450.
Annex C:10% and17% losses
GHI CA 20,000 at 10% and 15,000 at 17% consumes normal-equivalent 26,765, leaving 73,235 cap for losses 180,000/70,000. Adjusted loss pool 175,882 gives actual carry 74,950 at 10% and 29,147 at 17%, forward 105,050/40,853. Prior net 210,000/145,000 lessCA 20,000/15,000 and losses leaves 115,050/100,853; normal PTE 52,927 gives 47,926. Total tax 19,652.42 after prior 32,900; half rebates give 9,826.21 instead 16,450, discharge 6,623.79. No PTE on concessionary income.
Annex D1: new trade and cross-rate allocation
JKL new 5% trade A CA 90,000 cannot carry because no prior same business, but loss 560,000 can. Existing 10% CA net 10,000 and 17% CA after interest 5,000/rent 20,000 is 20,000; normal-equivalent 25,882 leaves 74,118. Normal loss 35,000 joins A’s adjusted 164,706, pool 199,706, giving actual A carry 207,836 and normal 12,990; forward 352,164/22,010. Prior 10% net 90,000/normal 175,000 first deductCA 10,000/20,000 and same-trade normal 12,990. Converted income weights 47,059/87,010 split A’s loss into 10%36,476 and 17%39,672. Final before exemption 43,524/102,338, normal PTE 53,669, tax 12,626.13 and net 6,313.07 versus 11,725, discharge 5,411.93.
Annex D2: foreign tax relief also changes
MNO 10% CA 50,000 offsets normal 74,000 by 29,412, leaving 44,588;10% loss 1 m uses 75,800 to cover that, leaving 924,200. Carry 170,000 is 100,000 normal-equivalent, forward 754,200. Prior 10%60,000/normal 102,000: carry first same 60,000, remainder 110,000 converts 64,706. It first offsets normal trade 47,000; remaining 17,706 allocates dividend 6,439/rent 11,267. Net dividend 13,561/rent 23,733 gives 37,294; PTE 21,147 leaves 16,147, tax 2,744.99. FTC lower of foreign 2,000 and 13,561÷37,294×16,147×17%=998.14. Net 1,746.85 then half rebate 873.43 gives 873.42 versus prior 6,314.16, discharge 5,440.74. Foreign-source country headline is below 15%, so exemption does not apply.
Annex E/F: group relief before carry-back
PQR CA 80,000 offsets current interest 25,000/rent 10,000, leaving 45,000. Transfer 30,000 to STU leaves 15,000 CA carry; loss 160,000 carries 85,000 and forwards 75,000. Prior profit 240,000−CA 55,000+interest 36,000+rent 25,000=246,000; groupCA 15,000 from VWX leaves 231,000, then carry 100,000 leaves 131,000. Historical exemptions 118,000/68,000 give tax 19,210/10,710, net 9,605/5,355 and discharge 4,250. AnnexF’s diagram orders own CA/losses, donations, group received CA/loss/donation, then carry-back CA/loss, then exemption; the loss-year company first uses own income and group transfers, then carry-back, leaving donations/IA forward.
Annex G: individuals Tan and Lim
Tan CA 55,000 offsets employment 24,000/rent 12,000 leaving 19,000; loss 154,000 carries 81,000, forward 73,000. Prior trade 42,000/employment 40,000/rent 21,000 total 103,000 less full 100,000 leaves 3,000; personal 13,000 yields nil and refund 4,500. The election cannot stop at personal-relief level. After first 42,000 trade offset,58,000 allocates employment 38,033, leaving earned 1,967 and earned relief 1,000. Lim current U CA 48,000,V profit 50,000−CA 35,000,Z CA 35,000 and other 36,000 leaves 32,000 CA carry. Losses 75,000/45,000 carry 68,000, forward 52,000. Prior 116,600 after carry 100,000 and 13,000 relief gives 3,600 instead 103,600, refund 5,564.
Annex H: capital restriction facts
LLP S&T shares are Song 30%/Topmost 70%; capital at end 2016/end 2017 is 20,000/60,000 and 120,000/175,000. LLP profit 93,000/loss 120,000 gives shares 27,900/−36,000 and 65,100/−84,000. CA 180,000/150,000 gives 54,000/45,000 and 126,000/105,000. CumulativeCA/loss 135,000 and 315,000 exceed latest capital by 85,000/140,000, but LLP-own-income offsets are distinguished from restricted other-income deductions.
Annex H: Song complete calculation
Song YA 2017 LLPCA 54,000 first covers LLP 27,900 and other 20,000, leaving 6,100. YA 2018 ownCA 35,000 plus oldLLP 6,100 and permitted currentLLP 33,900 total 75,000; other 60,000 leaves 15,000 CA carry. CurrentLLP 11,100 and loss 36,000 stay restricted forward; own loss 70,000 carries, so total carry 85,000. Prior assessable 213,000 becomes 128,000, relief 16,600 gives 111,400 instead 196,400, tax 6,461 instead 20,002, refund 13,541. LLP cumulative 135,000 less own-income 27,900 and other-income 60,000 leaves 47,100 (CA 11,100/loss 36,000). Relevant deductions total 60,000: previous 20,000 plus 32,000 against current and 8,000 via carry-back, within latest capital.
Annex H: Topmost complete calculation and printed labels
Topmost current ownCA 55,000 plusLLP 105,000 less interest 15,000/rent 72,000 leaves 73,000 CA carry. LLP loss 84,000 permits 9,100, restricts 74,900; own 200,000 plus 9,100 gives 209,100, carry 27,000, forward 182,100 plus 74,900 =257,000. Of carried losses 1,175 is LLP, leaving LLP 7,925+restricted 74,900=82,825 forward. CumulativeLLP 315,000 less own 65,100 and other 167,075 matches 82,825. Relevant total 167,075 comprises old 60,900, currentCA 57,094, carryCA 47,906 and carry loss 1,175, below 175,000. Prior 269,100 less 100,000 gives 169,100; historical exemptions 137,050/87,050, tax 22,448.50/13,948.50, net 11,224.25/6,974.25, refund 4,250. The yellow note labels 1,175 against YA 2018 although it is from the 27,000 carry-back, and a balance label says YA 2017 in the YA 2018 table; retain arithmetic and distinguish these printed slips.
Revision history and contact
2012 clarified currency,2014/2018 removed spousal-transfer references,2018 revised administration and obsolete seven-year limit,2019/2020 updated submission,2020/2021 added temporary enhanced relief,2023 added qualifying bodies/renumbered legislation; January 2026 edition retains historical annex assumptions. Contacts listed are individual 1800-3568300, corporate 1800-3568622, bodies 63513883, trusts/estates 63513363.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
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