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||
Taxable benefit = 40% of the AV*
Taxable benefit = 50% of the AV*
|– Utilities and housekeeping costs||
Taxable benefit = Actual amount paid by employer
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