Resource

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

		Place of Residence provided by employer
		Accommodation and related benefits provided by employer
		Hotel Accommodation provided by employer
		Cost of home leave passages and incidental benefits provided by employer
		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
		Insurance premiums paid by the employer
		Free or subsidised holidays including air passage
		Entrance/transfer fees and annual subscription to social or recreational clubs
		Gains from assets, e.g. vehicles, property, etc. sold to employees at a price lower than open market value
		Motor vehicles given to employee
		Car benefits

 

 

List of common benefits that are not taxable

		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
		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
		Insurance premium of group medical insurance
		Benefits given to promote creativity and innovation including staff suggestion and Work Improvement Teams (WITS) award
		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
		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)
		Gifts (cash/ non-cash) not exceeding $200 in value for special occasions like birthdays, weddings, births of child and festive seasons
		Bereavement gifts
		Childcare subsidy provided by employers to employees who send their children to licensed childcare centres
		Death gratuities/Disability payments/Workmen compensation
		Ad-hoc overtime meal allowance and reimbursement
		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.
		Reimbursement on car park charges for work purposes
		Reimbursement on ERP Charges incurred for work purposes
		Reimbursement on mileage for business usage
		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
		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