Employment Income

Employment income is considered to be derived from Singapore if the duties are exercised here.

Tax is imposed on all gains and profits of the employment including all allowances, fees, gratuities, share options, accommodation, motorcars and other perquisites provided.

With effect from YA 2015, IRAS has been taxing accommodation benefits enjoyed by employees (including director of a company) according to market value.


New Taxable Value

Place of Residence or Serviced Apartment not within hotel building

Annual Value (AV) of the premises (less rent paid by the employee), regardless of whether the premises is owned or rented by the employer. 

The current method of determining AV will continue to apply, i.e.: AV will be apportioned if accommodation is not provided for the whole year or accommodation is shared by 2 or more employees; and Changes in AV during the year are taken into account.

As an administrative concession, employers can choose to report the actual rent paid (full rent paid including furniture and fittings) for the furnished unit instead of using the Annual Value of the premises to report the housing benefits. 

Hotel accommodation

The actual costs incurred by the employer for the hotel stay provided.

Furniture and Fittings

A percentage of AV of the premises:

  • 40% of the AV if the premises is partially furnished; or
  • 50% of the AV if the premises is fully furnished

Partially furnished - Only fittings (e.g. lightings, air- conditioner/ceiling fan, water heater) are provided.

Fully furnished - Both fittings and furniture / household appliances are provided.

Where the employers choose to use the actual rent paid under the administrative concession, they are not required to do reporting for taxable furniture and fittings.

Non-resident individuals (except for public entertainers and company directors) who exercise employment in Singapore for not more than 60 days during the year are exempt from tax in respect of income from that employment.