Is my getArrange platform subscription considered a business expense in Singapore?

Yes. For self-employed individuals, your subscription fee can be factored in as a business expense. Your subscription with getArrange is considered a deductible business expense as it is deemed 'wholly and exclusively incurred in the production of income'.

Your subscription fulfils the following conditions:

The expenses are solely incurred in the production of income.

The subscription cost is directly tied to your ability to provide estate planning services to clients, which generates income for the business. The platform enables financial advisers to assist clients in drafting wills, a core function of the business, ensuring that the expense supports the income-generation process.

The expenses must be incurred. It is considered incurred when the legal liability to pay arises, regardless of whether the actual payment has been made. 

A yearly subscription implies a contractual obligation to pay for the service within a defined billing cycle. This legal liability meets the requirement that the expense is incurred.

The expenses are revenue in nature, and not capital expenses. Revenue expenses are generally costs incurred in the day-to-day operations of a business to generate revenue (such as salaries, rent, and utilities), while capital expenses are investments in the business that are expected to provide long- term benefits (such as acquisition of fixed assets).

The yearly subscription supports ongoing operational needs, such as enabling estate planners to use the software in their routine tasks. It is not a one-time expenditure to acquire an asset or create a long-term benefit. Instead, it is part of the business's regular running costs, akin to software subscriptions, rent, or utilities.

The expenses are not prohibited from deduction under the Income Tax Act 1947.

The subscription is a business expense incurred solely for professional purposes. It is not private, capital in nature, or related to non-business activities. It does not fall under prohibited categories such as personal entertainment, fines, or acquisition of fixed assets.