Tax treatment of Air Passages (Summary Table)
| Nature | Taxable/ 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.
Non-Expatriate Employees
(i.e. Singapore citizen and Singapore permanent resident)
Leave passage provided to employee and his family members is taxable.
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)
Tax Treatment of Home Leave Passage
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 to | No. of home leave passages per year |
|---|---|
Expatriate employee | One |
Spouse | One |
Unmarried child who is:
| 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.
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.
Tax Treatment of Home Leave Passage Before YA 2018
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 to | No. of home leave passages per year |
|---|---|
Expatriate employee | One |
Spouse | One |
Unmarried child who is:
| 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.