A capital expenditure tax schedule should explain the assets behind the year’s additions, not merely repeat a total from the accounts. Gather invoices, descriptions, acquisition details and business-use information for the tax adviser. Accounting depreciation does not, by itself, determine the company’s capital allowance claim.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Start from the additions and disposals

Reconcile the fixed asset listing to the relevant ledger accounts and identify purchases that may have been coded elsewhere. Include disposals, trade-ins and assets no longer in use. Keep the previous year’s closing information available so opening balances can be traced.

For each item, record the supplier, invoice reference, cost components, acquisition date and description. A line called equipment gives less useful evidence than a description that identifies the actual item and its business purpose.

Gather facts needed for eligibility

Ask who owns the item, what it is used for and whether the documents concern a purchase, lease or other arrangement. Separate personal or mixed-use questions for the adviser. Do not treat a bank payment as proof that the company owns an eligible asset.

Example: several items on one invoice

A supplier invoice covers equipment, consumables and a service. Preserve the itemised invoice and explain which parts were capitalised in the accounts. The tax adviser needs that detail to assess treatment; assigning the whole payment to one asset code can hide materially different components.

Keep the tax review separate

IRAS explains capital allowances as tax relief for qualifying expenditure, subject to the relevant rules. Ask the adviser to assess eligibility, the applicable claim method and any disposal consequences. Avoid carrying accounting depreciation straight into the tax computation as though the two measures were interchangeable.

Close the information gaps

Mark missing invoices, uncertain ownership and unexplained movements clearly. Assign a person to retrieve the evidence and retain the final reviewed schedule with its supporting documents. If an earlier year’s balance is affected, ask for the appropriate correction advice rather than absorbing the difference into the current year’s additions.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: IRAS official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.