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The rate of reimbursement for mileage depends on the company's policy. While there is no prescribed mileage rate, the reimbursement made by the company should be reasonable. 9: Taxes, repairs and maintenance expenses of employee's own vehicle: Taxable: 10
On 14 December 2018, the Inland Revenue Authority of Singapore (IRAS) announced a new formula for calculating taxable car benefits, effective from year of assessment (YA) 2020.1 This new formula is meant to better reflect the prevailing costs of car ownership and maintenance.
Tax Change. On 14 December 2018, IRAS announced a new formula for calculating taxable car benefits, effective from year of assessment (YA) 2020. This new formula is meant to better reflect the prevailing costs of car ownership and maintenance.
If an employee (including office holders) uses their own car for ‘business travel’ then the employer can make mileage allowance payments up to the ‘approved amount’ and these payments will not be taxable on the employee. The ‘approved amount’ for this purpose is obtained from the formula: M x R.
4 dni temu · This can be calculated with the following formula: [Annual cost of driver x (private mileage / total mileage)] For example, assuming a company hires a driver at a salary of $60,000 per year ($5,000 per month) and based on the mileage recorded, 40% of the time is spent ferrying their CEO on personal matters.
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.
The IRAS has changed the prescribed formula for calculating the taxable car benefit in Singapore. The formula to be used is dependent on the type of car provided (i.e., employer-owned car, employer-leased car) and whether the employer bears the cost of petrol.
