At a glance - Tax treatment of air passages
| Nature |
Taxable/ Not taxable |
| 1 |
Home leave passage |
Depends on the status of the employee.
More information available |
| 2 |
Cash payment in lieu of home leave passage |
Taxable |
| 3 |
For business purposes, e.g. meeting overseas clients, attending seminars, conferences and training. |
Not taxable
|
| 4 |
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 |
Tax treatment |
| (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
- Export
- 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 |
| Expatriate employee |
1 |
| Spouse |
1 |
Child who is:
- Unmarried; and
- Under 16 years old. If over 16, he is schooling; or
- Physically or mentally disabled
|
2 |
The full cost of the passage is taxable on the subsequent home leave passage, or where passages are provided to other family members.