Accommodation provided to you by your employer, whether in the form of an apartment, hotel or cash allowance, is taxable being part of your remuneration package.
1. Housing Cash Allowance
If you receive housing allowance, the full cash allowance is taxable.The rental paid for your accommodation is private in nature and cannot be claimed as an employment expense against your housing allowance.
2. If you are provided with a place of residence
If your employer owns or rents a place of residence and provides it as housing to you, it is deemed as a benefit-in-kind and is taxable. The value to be taxed is calculated at 10% of your total employment income or the Annual Value of the place of residence whichever is lower.
“Annual Value” is the estimated annual rent that a property can fetch.
Example 1
Salary, Bonus, etc
|
$150,000
|
Housing Benefit:
Lower of (10% x $150,000 = $15,000) or Annual Value $35,000
|
$15,000
|
Assessable Income
|
$165,000
|
Example 2
Salary, Bonus, etc
|
$150,000
|
Housing Benefit:
Lower of (10% x $150,000 = $15,000) or Annual Value $13,000
|
$13,000
|
Assessable Income
|
$163,000
|
If you are provided with a place of residence and contribute rent for the accommodation provided
Example 3
Salary, Bonus, etc
|
|
$150,000
|
Housing Benefit:
Lower of (10% x $150,000 = $15,000) or Annual Value $35,000
|
$15,000
|
|
Less: Rent paid by you
|
($10,000)
|
$5,000
|
Assessable Income
|
|
$155,000
|
If the place of residence provided by your employer is furnished
The value of the furniture and fittings provided to you are taxable at prescribed rates available at www.iras.gov.sg.
If your employer provides related benefits such as utility, telephone and cable bills, the actual amount paid by employer is taxable.
3. If you are provided with a Service Apartment
If the place of residence provided to you is a service apartment, the basis of computing the taxable value is the same as that described above. However, if the service apartment is located within a hotel building, hotel accommodation rate will apply.
4. If you are provided with Hotel Accommodation
If a hotel room is provided, the taxable value is computed as follows:
2% of basic salary for period of stay plus
The values shown below, pro-rated according to the number of days of hotel stay (per month, per person):
Self
|
$250
|
Wife
|
$250
|
Children < 3 years old
|
$25
|
Children 3-7 years old
|
$50
|
Children 8-20 years old
|
$100
|
Children > 20 years old
|
$250
|
If you are provided with hotel accommodation for 1 month and your monthly salary is $10,000
Example 4
The taxable value of hotel accommodation is $250 + (2% of $10,000) = $450
New! As announced in the Budget Statement 2013, the government will tax accommodation benefits enjoyed by employees (including director of a company) according to the market value with effect from the Year of Assessment 2015. The change is to simplify tax compliance and make our tax system more equitable. The taxable benefits will be assessed as follows:
| Benefit |
New Taxable Value |
| Place of Residence |
Annual Value (AV) of the premises (less rent paid by the employee), regardless of whether the premises is owned or rented by the employer.
The current method of determining AV will continue to apply, i.e.:
- AV will be apportioned if accommodation is not provided for the whole year or accommodation is shared by 2 or more employees; and
- Changes in AV during the year are taken into account
|
| Hotel accommodation |
The actual costs incurred by the employer for the hotel stay provided. |
| Furniture & Fittings (F&F) |
A percentage of AV of the premises, regardless of whether the F&F is owned or rented by the employer.
The percentage will be announced at a later date, after consultation with the industry.
|
IRAS will release further details on the changes by October 2013.