Working from home in Singapore has gone from being a novelty to the new normal. But while many tenants and landlords have figured out how to set up ergonomic chairs and decent Wi-Fi, the same can’t always be said for tax planning, especially when it comes to shared home office spaces. If you’re renting or leasing out a property and using part of it as an office, there may be tax savings flying under the radar.
Let’s break down the key points that tenants and landlords often miss when it comes to home office tax deductions in shared spaces.
1. Tenants: You Might Be Missing Out on Expense Claims
Tenants who use part of their rented home exclusively for work purposes may be able to claim deductions. But here’s where many miss out: shared spaces like the dining table or spare room don’t automatically count as a “home office” unless you can prove they’re used mainly for business.
That means if you’re a graphic designer who uses a corner of the living room as your workspace, you might still be able to claim a portion of your utilities, internet, or even rental expenses—if you can show consistent and primary business use. Keep documentation like floor plans and photographs. It might feel like overkill now, but if IRAS questions it, you’ll be glad you did.
Pro Tip: Pro-rata calculations matter. Only claim the percentage of the space used for work and the corresponding portion of eligible bills.
2. Landlords: Be Mindful of Your Tax Obligations
If you’re a landlord renting out a unit where tenants are using part of it for business, you’re usually off the hook—unless you’re also living in the property and running a business yourself. In that case, your own home office deductions could be affected.
For example, if you rent out two rooms and work from the third, you’ll need to clearly separate your business expenses from the income-generating portions of the property. Claiming the wrong things—or too much—can lead to unwanted attention from IRAS.
Don’t miss: Maintenance fees and mortgage interest can sometimes be claimed, but only in proportion to the space used for your business. Mixing rental income with home office claims without clear boundaries? That’s a red flag.
3. The Grey Zone: Shared Spaces and Blurred Lines
Both tenants and landlords often overlook the nuance of shared space deductions. Kitchens, hallways, and bathrooms don’t count toward claims—even if you use them during work hours.
However, expenses like internet and utilities can be partially deductible if they support business activity. The trick is proper apportionment. IRAS doesn’t want you to guess, so always keep a record of usage, where possible.
Example: If you’re using 20% of the home exclusively for work, and your total electricity bill is $300, you may claim $60. But keep a log if your usage varies month to month.
Final Thoughts: Small Steps, Big Tax Savings
Navigating home office tax for tenants and landlord obligations in Singapore’s shared spaces doesn’t have to be complicated. With some clear boundaries, good record-keeping, and smart expense claims, both parties can tap into meaningful tax savings without overstepping IRAS guidelines.
When in doubt, consult a tax advisor. The upfront effort can pay off come filing season.
And while you’re optimizing your home for better productivity and tax savings, don’t forget to keep your space running smoothly. Fixlaa offers reliable home services, from AC maintenance and deep cleaning to plumbing, electrical work, and more. Book a service today and keep your home office—and the rest of your space—in top shape.
