Singapore: Taxable car benefits, new formula effective - KPMG Global
close
Share with your friends

Singapore: Taxable car benefits, new formula effective 2020

Singapore: Taxable car benefits, new formula effective

The Inland Revenue Authority of Singapore in late 2018 announced a new formula for calculating taxable benefits of employer-provided automobiles. The new method is effective from the year of assessment 2020.

1000

Related content

Under the current formula, the distance traveled for private purposes (that is, personal use of the car) may involve some degree of estimation by the employee. The new formula requires no estimation because actual operating and maintenance expenses incurred by the employer are used. Nevertheless, the tracking of personal mileage is still required in situations when the employer also provides a driver along with the car.

The new formula is expected to better reflect the prevailing costs of car ownership and maintenance. Employers will need to take note of this change to determine that the correct taxable car benefits are reported in their employees’ Form IR84, Return of Employee’s Remuneration.

 

Read a February 2019 report [PDF 474 KB] prepared by the KPMG member firm in Singapore

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

Request for proposal