{"id":877,"date":"2018-12-17T08:28:04","date_gmt":"2018-12-17T00:28:04","guid":{"rendered":"http:\/\/ehluar.com\/main\/?p=877"},"modified":"2019-04-08T07:50:33","modified_gmt":"2019-04-07T23:50:33","slug":"e-tax-guide-for-change-in-basis-for-computing-taxable-car-benefit","status":"publish","type":"post","link":"http:\/\/ehluar.com\/main\/2018\/12\/17\/e-tax-guide-for-change-in-basis-for-computing-taxable-car-benefit\/","title":{"rendered":"IRAS e-Tax Guide: Change in Basis for Computing Taxable Car Benefit"},"content":{"rendered":"<p class=\"hP\">On or about 14 December 2018, the Inland Revenue Authority of Singapore (IRAS) has published the e-Tax Guide: Change in Basis for Computing Taxable Car Benefit on its website.<\/p>\n<p>This e-Tax guide replaces the previous two guides &#8220;Change in Basis for Computing Taxable Car Benefit&#8221; and &#8220;Basis for Computing Taxable Car Benefit&#8221; which were published on 22 October 1994 and 28 Jan 1995 respectively.<\/p>\n<p>Generally, the following car and car-related benefits are taxable:<\/p>\n<ul>\n<li>car provided by an employer<\/li>\n<li>driver \/ chauffeur services (annual cost of driver x (private mileage \/ total mileage)<\/li>\n<li>reimbursement of seasons or daily car park charges (when an employee drivers from home to work or parks his own car at the airport prior to go on business trips)<\/li>\n<li>allowance on ERP charges<\/li>\n<li>road tax, repair and maintenance of employee&#8217;s own vehicle<\/li>\n<\/ul>\n<p>From Year of Assessment 2020, there is a revised formula to be used by employers to compute their employees\u2019 taxable car benefits:<\/p>\n<p><strong>A. New Car (where the employer is the first owner)<\/strong><\/p>\n<blockquote>\n<p style=\"padding-left: 30px;\">value of benefit = 3\/7 [(car cost &#8211; PARF rebate)\/10 + actual running and maintenance costs incurred by the employer]<\/p>\n<\/blockquote>\n<p><strong>B. Second-hand Car<\/strong><\/p>\n<blockquote>\n<p style=\"padding-left: 30px;\">value of benefit (less than 10 years old at the time of purchase) = 3\/7 [{(car cost &#8211; PARF rebate)\/remaining period to expiry of the COE} + actual running and maintenance costs incurred by the employer]<\/p>\n<p style=\"padding-left: 30px;\">value of benefit (more than 10 years old at the time of purchase) = 3\/7 [{(car cost &#8211; PARF rebate)\/renewed COE} + actual running and maintenance costs incurred by the employer]<\/p>\n<\/blockquote>\n<p><strong>C. Car with Renewed COE<\/strong><\/p>\n<blockquote><p>value of benefit = 3\/7 [{(Amount payable on renewal of COE) &#8211; (Amount of PARF rebate which would be granted on the first COE if de-registered between 9 and 10 years old)} \/ (Remaining period from the date of renewed COE to expiry date) + actual running and maintenance costs incurred by the employer]<\/p><\/blockquote>\n<p><strong>D. Leased Car<\/strong><\/p>\n<blockquote><p>value of benefit = 3\/7 (rental costs incurred by employee + actual running and maintenance costs incurred by the employer)<\/p><\/blockquote>\n<p>Source: <i>IRAS website<\/i>, 17 December 2018<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On or about 14 December 2018, the Inland Revenue Authority of Singapore (IRAS) has published the e-Tax Guide: Change in Basis for Computing Taxable Car Benefit on its website. This e-Tax guide replaces the previous two guides &#8220;Change in Basis for Computing Taxable Car Benefit&#8221; and &#8220;Basis for Computing Taxable Car Benefit&#8221; which were published [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,6],"tags":[],"class_list":["post-877","post","type-post","status-publish","format-standard","hentry","category-incometax","category-techupdates"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/877","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/comments?post=877"}],"version-history":[{"count":3,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/877\/revisions"}],"predecessor-version":[{"id":984,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/877\/revisions\/984"}],"wp:attachment":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/media?parent=877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/categories?post=877"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/tags?post=877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}