On 16 December 2016, the Inland Revenue Authority of Singapore published an e-tax guide on the application of the total asset method (TAM) for interest adjustment.
Under Singapore's Income Tax Act (ITA), interest expense and borrowing costs incurred on loans are only deductible if the loan is specifically taken up to finance income-producing assets or assets that are employed in acquiring income. If the asset does not produce income, the interest expense and borrowing costs are not tax dedu…