Air Passage

Tax treatment of home leave passage, cash payment in lieu of home leave passage, air passages for business meetings, etc. for expatriates and non-expatriates.

Tax treatment of Air Passages (Summary Table)

NatureTaxable/ Not taxable

1

Home leave passage (air passage provided by employer for the employees to visit their home countries)

Depends on the status of the employee. See Home Leave Passage (below).

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 commence work in Singapore and to leave Singapore when employment ceases. Air passages may also be provided to employee's family members.

Not taxable.

However, when the employee renews his contract with the same employer and is provided with air passage, the tax treatment is same as home leave passage.

Home Leave Passage

The tax treatment depends on the status of the employee.

  1. Non-Expatriate Employees

    Leave passage provided to employee and his family members is taxable.

  2. Expatriate Employees of Companies Granted Extension of Certain Incentives Before 1 Jan 2004

    Expatriate employees 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)

    The home leave passage is not taxable until the company's incentive status expires. There is a cap on the number of home leave passages per year (see table below) that will be considered not taxable.

    Person whom home leave passage is provided toNo. of home leave passages per year

    Expatriate employee

    One

    Spouse

    One

    Unmarried child who is:

    • Under 16 years old. If over 16 years old, must be schooling; or
    • Physically or mentally disabled

    Two for each child

    Subsequent home leave passages are taxable in full. Home leave passages given to other family members not listed in the table above are also taxable in full.

  3. Expatriate Employees Who Do Not Fall Under B

    Tax Treatment of Home Leave Passage From YA 2018

    The home leave passages provided to expatriates, their spouses and children are taxable in full.

    Only 20% of the cost of passage is taxable as a concession is granted. The concession is limited to a fixed number of home leave passages per year (see table below).

    Person whom home leave passage is provided toNo. of home leave passages per year

    Expatriate employee

    One

    Spouse

    One

    Unmarried child who is:

    • Under 16 years old. If over 16 years old, must be schooling; or
    • Physically or mentally disabled

    Two for each child

    Subsequent home leave passages are taxable in full. Home leave passages given to other family members not listed in the table above are also taxable in full.

    You should declare only the taxable value (20% of the home leave passage) in Appendix 8A when filing your taxes.

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