When you hire new employees in Singapore it will be necessary to understand how different types of benefits are handled. Reimbursing employees for work-related mileage or transport expenses are fairly common, but Singapore has a very specific way of regulating this benefit.
Jul 06, 2021 Director, Shield GEO Services Ltd
Reimbursing employees for work-related mileage or transport expenses are fairly common, but Singapore has a very specific way of regulating this benefit. It’s important to know the rules as they will affect the taxability of reimbursements for employees.
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It’s important to know the rules as they will affect the taxability of reimbursements for employees.There are two types of potential reimbursements in Singapore: mileage with a private vehicle or expenses using public transport. Commuting Expenses In general taxability of reimbursements to employees will depend on the reason for the expense. For employees that are on official work business only, any transport expense reimbursement is non-taxable. Shuttle bus services to and from work are also non-taxable, primarily due to the fact it is difficult to calculate the value to the employee. On the other hand, reimbursing taxi fares to and from work is taxable to the employee, unless they are working overtime. Fares to the airport are not taxable, nor are expenses to travel to a business venue (not the place of employment). With the increase in home-based employees, it has been decided that the home is the ‘office’ and travel to other business venues is not taxable. Private Cars Using a. read more Shield GEO makes international employment simple. Our customers use Shield GEO to employ and payroll hundreds of workers in over fifty countries. Find out more.
