Employment expenses are expenses which are wholly and exclusively incurred in the production of your employment income in Singapore.
These expenses can be deducted from your employment income.
Who can claim
You may claim your employment expenses if you satisfy ALL conditions below:
- Expenses are incurred when you are carrying out your official duties.
- Expenses are not reimbursed by your employer.
- Expenses are not of capital/private in nature.
Examples of allowable expenses
- Entertainment expenses incurred in entertaining clients.
- Travelling expenses incurred on public transports (examples: buses, trains, taxis).
- Subscriptions paid to professional bodies or society.
- Mosque building fund, zakat, fitrah or any other religious dues authorised by law.
Examples of wrongful claims
- Entertainment expenses incurred on meals with colleagues.
- Transport expenses incurred on your own motor vehicle.
- Travelling expenses incurred to and from home and office.
- Payment in lieu of notice paid to employers for failing to serve sufficient notice period before leaving a job.
How to claim
You need to enter your employment expenses claim under 'employment expenses' in your Tax Return.
You have to keep complete and proper records of all expenses incurred. Receipts/vouchers etc. should be kept by you and may be required for verification. Estimates are not acceptable for income tax purposes.
If you have filed your tax return online, please send us the details of expenses claimed* via email, fax or post.
If you are submitting paper Income Tax Return, please enclose details of your expenses claim* with your tax return.
FAQ
Q1. I had just breached my employment contract and am ordered to pay back the company the income that I earned. Why am I still taxable on the income that I need to pay back to the company?
Employment income and payback to company for breach of employment contract are two separate forms of payment. The employment income that you received was for past services rendered by you and is taxable. The payback to your company is a compensatory payment by you for breaching your employment contract. it is usually stated in the employment contract and is considered as liquidated damages.
Liquidated damages are not tax deductible as an expense and it cannot be set-off against your employment income.