21 August 2015

The Inland Revenue Authority of Singapore (IRAS) has issued new content on its website on the tax treatment of transportation services.

Transportation of services refers to a payment for services to commute from one place to another without the passenger having any control or possession of the motor car.

IRAS has clarified that payments for transportation services (e.g. bookings for SZ-plated or S-plated car via mobile applications) will qualify for tax deduction if they are incurred for business purposes.

Expenses to hire a motor car, however is at the disposal of the hirer. Therefore hiring charges for SZ-plated or S-plated cars used in Singapore will not qualify for tax deduction.

The update was made on 14 August 2015.

Source: IRAS