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Useful articles on HR and Payroll in Singapore
26 January 2022

Benefits-in-kind

 

Benefits-in-kind are non-cash benefits of monetary value that you provide for your employees. Generally, all gains and profits derived by an employee during his/her time of employment with a company are taxable, unless they are specifically exempt from income tax or are covered by an existing administrative concession.

 

List of common benefits that are taxable

 
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Place of Residence provided by employer
 
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Accommodation and related benefits provided by employer
 
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Hotel Accommodation provided by employer
 
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Cost of home leave passages and incidental benefits provided by employer
 
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Interest payment made by the employer to a third party on behalf of an employee and/or interest benefits arising from loans  provided by employer interest free or at a rate below market rate to the employee who has substantial shareholding or control or influence over the company
 
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Insurance premiums paid by the employer
 
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Free or subsidised holidays including air passage
 
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Entrance/transfer fees and annual subscription to social or recreational clubs
 
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Gains from assets, e.g. vehicles, property, etc. sold to employees at a price lower than open market value
 
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Motor vehicles given to employee
 
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Car benefits

 

 

List of common benefits that are not taxable

 
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Benefits that foster goodwill or promote camaraderie among staff:
a) Sponsored group outings in Singapore 
b) Family Day events
c) Corporate Dinner & Dance (including door gifts and lucky draw prizes)
d) Provision of social or recreational facilities (free or subsidised)
e) Corporate gifts like mugs, T-shirts
f) Free or subsidised food and drinks
g) Free transport between pick-up points and the place of work
h) Corporate passes to places of interests in Singapore
   
 
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Benefits relating to employee's health (free or subsidised)
a) Medical bill of employees on outpatient treatment, hospitalisation and dental
b) Medical bills of employee's spouse and children
   
 
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Insurance premium of group medical insurance
 
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Benefits given to promote creativity and innovation including staff suggestion and Work Improvement Teams (WITS) award
 
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Benefits given to encourage upgrading of skills and knowledge building
a) Subsidies for course fees
b) Training fees for staff development
c) Scholarships awards
d) Examination fees
   
 
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Awards not exceeding $200 in value
a) Retirement award (non-cash)
b) Long service award (non-cash)
c) Service Excellence Award (cash/ non-cash)
d) Zero or low Medical Certificate Award (cash/ non-cash)
e) Award for passing of examination (cash/ non-cash)
   
 
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Gifts (cash/ non-cash) not exceeding $200 in value for special occasions like birthdays, weddings, births of child and festive seasons
 
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Bereavement gifts 
 
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Childcare subsidy provided by employers to employees who send their children to licensed childcare centres
 
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Death gratuities/Disability payments/Workmen compensation
 
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Ad-hoc overtime meal allowance and reimbursement
 
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Interest benefits arising from interest-free or subsidised interest loans provided by employers to employees
  Note
  Employees must not have substantial shareholdings, or control or influence over the company.
  This concession does not cover interest rate subsidies granted by the employer in respect of commercial loans obtained from financial institutions.
   
 
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Reimbursement on car park charges for work purposes
 
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Reimbursement on ERP Charges incurred for work purposes
 
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Reimbursement on mileage for business usage
 
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Private benefit, including reimbursement of car parking charges and petrol, derived by drivers of commercial vehicles (e.g. motorcycles, vans, trucks, minibus, lorries) when drivers drive home after work, and from home to the designated workplace
 
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Staff discount on goods or service not exceeding $500 (excluding interest free or subsidised loans and discounted stock options or awards)

 

 

WhyzeHR allows you to submit Benefits-in-Kind as part of IRAS Auto Inclusion Scheme (AIS) for Employment Income. Contact us if you need more guide on how to key in or import from our excel. 

 

For more details on the types of benefits that taxable, you can refer to IRAS: 

IR8A Appendix 8A

List of Benefits-in-Kind Granted Administrative Concession or Exempt from Income Tax

Tax Principles and Flexible Benefits