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Responsibilities as employer

Changes at a glance 

The following is a summary of the changes made. You can access the page on the tax treatment of an item by clicking on the hyperlink.

 

Item

Tax treatment prior to YA 2008

Tax treatment with effect from YA 2008

Not taxable

1

Social or recreational facilities (free or subsidised) 

Facilities provided by the employer are not taxable.

This concession is extended to the facilities provided by third-party vendors from which the employer subscribes a corporate membership. Concession is confined to use of gym, sports venues, holiday chalets, BBQ pits. 

Concession does not apply where an employer has corporate country club membership and extend the usage of the country club facilities to all employees, not withstanding that the country club provides gym, sports venues and BBQ pits, etc.

2

Corporate passes to places of interests in Singapore 

Taxable

Not taxable.

Examples of these passes are corporate passes to Singapore Zoo, Night Safari, Jurong Birdpark, Sentosa, Escape Theme Park, Singapore Discovery Centre and Singapore Science Centre.

3

Premium of group medical insurance  

Taxable if the employee is named as beneficiary.

Not taxable regardless of who is the named beneficiary.

4

Transport payments for trips to/ from home and airport in respect of overseas business trips 

Only reimbursements are not taxable.

Per-trip allowance for an actual trip made is not taxable.

 

5

Transport payments for trips to/ from home to business venue if the travel is for business purposes  

Only reimbursements are not taxable.

Per-trip allowance for an actual trip made is not taxable.

 

6

Private benefit, including reimbursement of car park charges and petrol, derived by drivers of commercial vehicles (e.g. motorcycles, vans, trucks, minibus, lorries) when drivers drive the vehicles home after work, and from home to the designated workplace   

Taxable

Not taxable.

Exemption threshold applicable

7

Gifts (cash/ non-cash) for:

a) Special occasions like birthdays, weddings, birth of child and bereavement

b) Festive season like Chinese New Year, Hari Raya, Deepavali and Christmas

 

The gifts are not taxable if they are not substantial in value.

As a guide, a gift not exceeding $100 is considered to be not substantial in value. 

If the gift exceeds the exemption threshold, the whole value is taxable. 

For bereavement, there is no exemption threshold. The whole amount is not taxable. 

The amount has been increased from $100 to $200.

8

Retirement award (non-cash) 

 

Each award is not taxable if it is symbolic and a token of little or commercial value. 

As a guide, an award not exceeding $100 is considered to be not substantial in value. 

If the award exceeds the exemption threshold, the whole value is taxable.

The amount has been increased from $100 to $200.

9

Long service award (non-cash)

 

10

Service Excellence Award (cash/ non-cash)  

Taxable

Each award granted to an employee is not taxable provided the value of the benefit does not exceed $200. If the award exceeds the exemption threshold, the whole value is taxable.

11

Zero or low MC Award (cash/ non-cash)  

Taxable

12

Award for passing of examination (cash/ non-cash) 

Taxable

 

 
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Last Updated on 19 October 2011

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