At a glance - Tax treatment of air passages
||Taxable/ Not taxable
||Home leave passage
||Depends on the status of the employee.
More information available
||Cash payment in lieu of home leave passage
||For business purposes, e.g. meeting overseas clients, attending seminars, conferences and training.
||Air passage provided to employee to work in Singapore and to leave Singapore when employment ceases. Air passages may also be provided to employee's family members.
||Not taxable if it is the employee's first appointment in Singapore.
Home leave passage
An employee is given home passage. Is this taxable?
The tax treatment depends on the status of the employee.
|Status of employee
|(a) Non-expatriate employee (i.e. Singapore citizen and Singapore permanent resident)
||Leave passage provided to employee and his family members is taxable.
(b) Expatriate employee of a company that is awarded or granted extension of the following incentives prior to 1 Jan 2004:
- Pioneer service
- Operation Headquarters (OHQ)
|Not taxable. However, there is a limit imposed on number of trips and conditions apply.
|(c) Expatriate employee who does not fall under (b)
Only 20% of the cost of passage is taxable as a concession is granted. There is a limit imposed on number of trips and conditions apply.
Declare only the taxable value in Appendix 8A.
Limit imposed on trips and conditions applicable on employees in (b) and (c)
|Person whom home leave passage is provided to
||No. of home leave passage per year
Child who is:
- Unmarried; and
- Under 16 years old. If over 16, he is schooling; or
- Physically or mentally disabled
The full cost of the passage is taxable on the subsequent home leave passage, or where passages are provided to other family members.