11 November 2013

On 8 November 2013, IRAS released details of the changes to the tax treatment of accommodation provided and related benefits on its website. The changes were first announced in Budget 2013 and will take effect from year of assessment (YA) 2015.

The tax treatment of accommodation and related benefits provided to employees (including directors) from YA 2015 onwards is summarised below:

Place of residence or serviced apartment not within hotel building
– Accommodation	Taxable benefit = Annual value (AV)* of premises less rent paid by employee (including a director)
– Furniture and fittings	If the premises is partially furnished (i.e. only fittings such as lightings, air-conditioners, ceiling fans, water heaters are provided): Taxable benefit = 40% of the AV* If the premises is fully furnished (i.e. both furniture and fittings are provided): Taxable benefit = 50% of the AV*
– Utilities and housekeeping costs	Utilities, telephone and cable bills, household servant: Taxable benefit = Actual amount paid by employer Gardener: Taxable benefit = Actual wages paid by employer
Hotel accommodation or serviced apartment within hotel building	Taxable benefit = Actual costs incurred by employer for the hotel stay less amount paid by employee
Housing allowance	Taxable benefit = Actual amount paid to director/employee
Rental agreement signed by employee but employer pays the rent to the landlord	Taxable benefit = Actual rent paid by employer

* The AV is the estimated annual rent of the property if it is rented out. This excludes furniture, furnishings and maintenance fees. As an administrative concession, employers can choose to report the actual rent paid for the premises (including furniture and fittings) instead of the AV.

Source: Inland Revenue Authority of Singapore