FAQ on Tax Treatment of Employee Remuneration

General Information 

• Tax principle
• List of benefits-in-kind granted administrative concession or exempt from income tax 
• Changes to tax treatment of benefits-in-kind with effect from Year of Assessment 2008
• Flexible benefits scheme

Accommodation provided

• Accommodation provided to an employee
• Accommodation provided to a director
• Furniture and fittings and related benefits
• Service apartment
• Hotel
• Housing allowance
• Employee signs a rental agreement but asks employer to pay landlord the rent

Air passage

• Home leave passage
• Cash payment in lieu of home leave passage
• Passage provided for business purpose
• Passage provided when taking up employment and upon termination

Awards 

• Award for passing exams 
• Bursary
• Innovation/ Improvement
• Long service/ retirement 
• Recognition of good service 
• Recognition of work performance
• Referral
• Zero/ low MC 

Benefits relating to corporate events 

• Food, door gifts and lucky draw prizes
• Dinner and dance held overseas

Benefits relating to loans 

• Interest benefits arising from interest-free or subsidised interest loan 
• Interest benefits on loans to company directors
• Waiver of principal sum

Car-related items 

• Car provided
• Commercial vehicle provided 
• Car park charges
• ERP charges
• Mileage for business usage
• Taxes, repairs and maintenance expenses of employee's own vehicle

Childcare subsidy 

• Subsidy for a child in childcare centre
• Subsidy for a child in student care

Contributions to CPF 

• Employer's portion relating to employment in Singapore
• Contributions made from 1 Jan 2004 relating to employment outside Singapore
• Contributions relating to director's fees

Gifts 

• Festive occasions 
• Special occasions 
• Bereavement

Insurance premium 

• Insurance premium
• Group medical insurance
• Travel insurance covering the period of business travel
• Workmen compensation insurance

Lump sum payment 

• Death gratuities/ Injuries or disability payments/ Workmen compensation
• Gratuity for completing number of years of service
• Payment to induce a person to join the company
• Retrenchment payment to compensate loss of employment
• Retirement benefits
• Payment made to employee for entering into covenant
• Salary in lieu of notice/notice pay

Meal allowance or reimbursement & food provided 

• Fixed monthly meal allowance
• Working overtime - allowance paid or reimbursement made
• Free or subsidised food and drinks

Medical and dental care 

• Reimbursement for employees and dependants
• Medical benefit based on gender or age
• Medical insurance
• Transport expenses to see doctor

Other payments 

• Absentee payroll under Skills Redevelopment programme
• Conditional payments made in advance
• Inflation bonus
• Laundry allowance
• Maternity leave benefit
• NSman pay
• Skills Development Levy (SDL)
• Contributions made by employer to employee's Supplementary Retirement Scheme (SRS) account
• Relocation allowance
• Contributions made by employer to any pension/provident fund outside Singapore
• Employment Assistance Payment (EAP)

Overseas holiday trips 

• Overseas holiday trips
• Holiday reimbursement

Overtime payments 

• Overtime allowance
• Overtime claims

Per diem 

• Per diem allowance (Rates for 2013 now available)
• Per diem reimbursement
• Combination of allowance and reimbursement
• Parking fees at the airport
• Travel insurance premium
• Travel between home and airport
• Payment for warm clothing
• Payment for luggage

Social and recreational facilities 

• Facilities owned by employer 
• Reimbursement for renting chalet
• Corporate passes to places of interest

Staff Discount 

• Staff discount offered by employer or its related entities
• Staff discount extended to employee’s family members, relatives and friends

Stock Options 

• Employee Share Option (ESOP)
• Other forms of Employee Share Ownership (ESOW) Plan

Subscriptions 

• Club
• Personal membership to gym/ fitness centre/ sports club/ union
• Handphone/ Internet reimbursement
• Handphone allowance
• Cable for TV
• Professional bodies

Tax paid by employer 

• Full or part of tax paid by employer
• Fixed sum of tax allowance

Training 

• Subsidies for course fees and training fees for staff development
• Scholarship payments
• Subsidy of course fees or scholarship given as reward for service rendered
• Overseas training

Transport 

• Fixed monthly allowance
• Expenses for discharging official duties
• Mileage on private cars
• Working overtime
• Shuttle bus
• Taxi trip between home and office
• Travel between home and airport 
• Travel between home and business venue
• Trips made by employee between home and external business venues