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Singapore Payroll News
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Benefits-in-kind concessions
IRAS is granting two new administrative concessions on Benefits-in-kind, following a public consultation exercise conducted in April 2004. Under the law, every benefit received by an employee is taxable. However, IRAS recognises that, for certain benefits, employers find it difficult to allocate and assign to specific employees. In view of this, IRAS has decided to grant two new administrative concessions that will apply retrospectively from 1st January 2004.
The first concession is for free or subsidised food and drink provided by employers to employees. Examples of these include coffee/tea/snacks provided in the pantry, company sponsored meals and free meals provided by employers. To qualify for the concession, this benefit should be generally available to all staff. Meal reimbursements and meal vouchers are not covered by this concession because the benefit can be assigned to specific employees.
The second concession is for free transport services between pick-up points and the location of employment. One example is shuttle bus provided by the employer between MRT stations and employment location. This concession does not cover company reimbursements for taxi-fare between home and the place of work. Such reimbursements would continue to be taxable because they are assignable to the specific individual. As a general rule, all cash allowances are taxable.
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...back to 14 October 2004
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Inland Revenue Authority of Singapore
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