print friendly version
Text Size  A  A  A

Responsibilities as an employer

At a glance - Tax treatment of medical and dental care provided

Nature Taxable/ Not taxable
1 Reimbursements of medical and dental care / treatment provided for:
a) Employee, employee's spouse and children Not taxable if the benefits are available to all employees
b) Dependants other than those in (a)


More information on the scope of the administrative concession available


Medical benefits that are available to employees based on gender or age or employee's grade


  • Breast cancer screening and maternity bills for female employees.
  • Health screening for employees above 40 years old.
  • Reimbursements of medical expenses for the spouse and children of non-bargainable employees.

Not taxable, if:

(i) There is a basic form of medical benefits (e.g. outpatient treatment and hospitalisation) which is made available to all employees regardless of gender, age or grade etc; and

(ii) The benefit differentiated by gender, age or employee's grade is part of the organisational compensation and benefits structure/policy; and

(iii) There are genuine commercial reasons for such variation (e.g. to attract or retain staff)

3 Medical care provided through medical insurance. The employer pays the insurance premium.

The tax treatment depends on the type of medical insurance provided.

See topic on insurance premium 

4 Reimbursement of transport expenses incurred for medical consultation Taxable as it is not regarded as reimbursement for medical care but one for private expenses

Reimbursement for treatment on medical and dental care

Q1 Are reimbursements for expenses incurred on traditional Chinese medicine taxable?

These reimbursements are not taxable.

Q2 Are reimbursements for the purchase of health supplements, contact lens and eyeglasses taxable?

These reimbursements are taxable as they are not covered under the administrative concession.

Q3 Is there a difference in the tax treatment for General Practitioner (GP) outpatient medical bills and specialist medical bills?

There is no difference in the tax treatment. If both benefits are available to all employees, the reimbursement for both types of bills are not taxable.

Q4 The amount of reimbursement on the same benefit (e.g hospitalisation) depends on the employee’s grade. Does it affect the tax treatment?

Applying different thresholds for staff of different grades does not affect the tax treatment. The reimbursements are not taxable.

Q5 Is there a threshold amount beyond which the reimbursement of medical and dental expenses will be subject to tax?


Q6 The medical and dental benefits are made under a flexible benefits scheme where employees are given various benefits to choose from. What is the tax treatment?

Offering medical and dental benefits under the flexible benefits scheme (also known as cafeteria benefits) does not change the tax treatment of the benefits. See information on flexible benefits scheme.


Rate this page
Strongly Disagree                 Strongly Agree
Information is easy to understand.  
Information is useful.
Information is easy to find.

Suggestions to improve this page:
Please email us if you would like us to respond to your enquiries.

Last Updated on 7 December 2012

© 2014 Inland Revenue Authority of Singapore. All Rights Reserved.