Changes to Tax Treatment of Benefits-in-Kind Effective Year of Assessment (YA) 2008

Effective YA 2008, certain benefits-in-kind are no longer taxable. The threshold for some benefits-in-kind have also been revised.

Benefits-in-Kind Not Taxable Effective YA 2008

Tax Treatment Prior to YA 2008Tax Treatment Effective YA 2008

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.

For details, please refer to Social or recreational facilities (free or subsidised) .

Tax Treatment Prior to YA 2008Tax Treatment Effective YA 2008

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.

For details, please refer to Corporate Passes to Places of Interests in Singapore .

Tax Treatment Prior to YA 2008Tax Treatment Effective YA 2008

Taxable if the employee is named as beneficiary.

Not taxable regardless of who is the named beneficiary.

For details, please refer to Premium of group medical insurance .

Transport Payments Related to Overseas Business Trips

Tax Treatment Prior to YA 2008

Tax Treatment Effective YA 2008

Only reimbursements are not taxable.

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

For details, please refer to Transport Payments for Trips To/From Home and Airport in respect of Overseas Business Trips .

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.

Tax Treatment Prior to YA 2008

Tax Treatment Effective YA 2008

Taxable

Not taxable.

For details, please refer to car-related items .

Revised Exemption Thresholds on Benefits-in-Kind

  1. Special occasions like birthdays, weddings, birth of child and bereavement
  2. Festive season like Chinese New Year, Hari Raya, Deepavali and Christmas
Tax Treatment Prior to YA 2008Tax Treatment Effective YA 2008

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.

For details, please refer to Gifts (Cash/Non-Cash) .

Tax Treatment Prior to YA 2008Tax Treatment Effective YA 2008

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.

For details, please refer to Retirement Award (Non-Cash) .

Tax Treatment Prior to YA 2008Tax Treatment Effective YA 2008

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.

For details, please refer to Long Service Award (Non-Cash) .

Tax Treatment Prior to YA 2008Tax Treatment Effective YA 2008

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.

For details, please refer to Service Excellence Award (Cash/Non-Cash) .

Tax Treatment Prior to YA 2008Tax Treatment Effective YA 2008

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.

For details, please refer to Zero or Low MC Award (Cash/Non-cash) .

Tax Treatment Prior to YA 2008Tax Treatment Effective YA 2008

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.

For details, please refer to Award for Passing of Examination (Cash/Non-Cash) .

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