The Inland Revenue Authority of Singapore (IRAS) is aware of misleading information being circulated, encouraging taxpayers to make false claims for employment expenses^[1] that were not incurred, or incorrect claims for expenses that are not allowable as tax deductions. Taxpayers are advised not to rely on such information (refer to Annex A (PDF, 217 KB) for an example), and to ensure that the claims made in their tax returns are valid, accurate, and properly substantiated. IRAS may require taxpayers to provide records to substantiate their claims.

Through its ongoing compliance reviews, IRAS has identified over 3,000 taxpayers to-date making employment expense claims similar to those suggested in circulating messages. Taxpayers whose claims require further review have been or will be contacted by IRAS to verify the accuracy of their claims and to provide supporting documentation. Unsupported claims will be disallowed. Those who deliberately make false claims may face penalties and enforcement actions.

Taxpayers with valid, accurate and verifiable claims need not be concerned that their claims will be disallowed.

Claim Only Qualifying Employment Expenses

IRAS reminds taxpayers that only qualifying employment expenses are tax deductible. In general, such expenses must be incurred wholly and exclusively for official duties, must not be reimbursed by the employer, and must be supported by proper records.

Examples of non-allowable employment expenses include:

• Personal meals, housing rent, subscription fees, and phone or internet bills;
• Public transport expenses for travel between home and the workplace;
• Private car expenses (i.e. for cars with licence plates starting with “S”), even if the car is used for work purposes; and
• Purchases of electronic devices, such as mobile phones and computers, for work purposes.

Refer to Annex B (PDF, 177 KB) for examples of common employment expenses, including those that may or may not be claimed as tax deductions.

Taxpayers should retain relevant supporting documents, such as receipts and invoices, to substantiate their claims and produce them when requested by IRAS. Claims based on estimates are not acceptable. Those who are unsure whether an expense qualifies for deduction should seek clarification from IRAS before making a claim.

Taxpayers Should Correct Any Incorrect Expense Claims

Taxpayers who have made incorrect or unsupported employment expense claims should amend or withdraw their claims through the ‘Amend Tax Bill’ digital service immediately. Those who are unable to make the necessary correction through the service can submit their request to withdraw the claims or contact IRAS via live chat.

It is an Offence to Make False Claims

Taxpayers are responsible for ensuring that their tax declarations are accurate. IRAS takes a serious view of false, incorrect and unsupported claims. Additional tax and penalties of up to three times the tax undercharged may be imposed for such claims, and individuals charged in court may also be liable to a fine not exceeding $10,000 or to imprisonment for a term not exceeding three years or to both.

IRAS will continue to monitor employment expense claims and will take appropriate enforcement actions against taxpayers who deliberately abuse the tax system. Taxpayers are advised not to rely on unverified tax advice circulating online or from unofficial sources and should refer to IRAS' official website for accurate information on employment expense claims.

Members of the public are also advised not to create, circulate or act on information that encourages false claims.

Inland Revenue Authority of Singapore

^[1] Employment expenses are expenses employees incur in carrying out their work. Certain employment expenses may be deducted from employment income, reducing the amount subject to tax.