9 March 2015

The Inland Revenue Authority of Singapore (IRAS) has updated its website content on the tax treatment of motor vehicle expenses as well as on capital allowance claim for motor vehicles.

The updated online content was previously found in the e-Tax Guide “Changes in Tax Treatment of Motor Cars Consequent to Vehicle Tax 
Rationalisation (Revised edition – 30 December 2014)”. The Guide has since been removed.

Clarification was made on the tax treatment for motor vehicle expenses for RU-plated car whereby no deduction is allowable on motor vehicle expenses incurred on S-plated cars, RU-plated cars and company cars (excluding Q-plated cars registered before 1 April 1998), whether they are directly incurred or paid in the form of reimbursement. This is so even if these cars are used for business purposes.

The update was made on 26 February 2015.

For further details, please refer to the IRAS website.

Source: IRAS