On 18 August 2014, the Inland Revenue Authority of Singapore issued an e-Tax Guide on tax deductions for borrowing costs other than interest expense. The guide updates the initial guide issued in 2007 and adds additional deductible borrowing costs. From year of assessment 2008, borrowing costs other than interest expenses, which are incurred as a substitute for interest expense or to reduce interest costs, are granted tax deduction. Prior to 2008, only interest expenses incurred on capital employed in acquiring income chargeable with tax was allowable against the income earned. The additional borrowing costs that are deductible from year of...