The Inland Revenue Authority of Singapore (IRAS) has revised the formula for computing car benefits with effect from the Year of Assessment (YA) 2020 to simplify tax compliance, as well as to better indicate the value of the actual benefits enjoyed by employees.
Following the revision, employees are no longer required to log their private mileage travelled arising from the private usage of the cars, except in the case where a driver is provided.
The current formula up to YA 2019 and the new formula effective from YA 2020 for computing car benefits are as follows:
*Or the remaining period from the date of purchase of the car to the date of expiry of the first COE or renewed COE.
^PARF refers to the Preferential Additional Registration Fee Rebate to be granted when the car is de-registered at the age of above 9 but not exceeding 10 years.
# Actual running and maintenance costs, include reimbursements made to the employee by the employer. Examples of such costs include road tax, petrol, car park charge, ERP charge, car insurance, repairs and maintenance, if any.
For further information, please refer to IRAS’ website