AntonPara wrote:
1. SGD2000 is enough to run a decent car in Singapore?
That sounds quite good already, unless you want a specific model of sports car...
AntonPara wrote:
2. how is this taxed?... e.g. would i be better off to include this in my monthy pay rather that declare it a perk?....
Benefits in kind such as car are less taxed than if included in the salary.
The exact calculation is (as mentioned on IRAS website)
For car provided by the employer, the taxable benefits are calculated as follows:
If the cost of petrol is borne by the employer:
3/7 x (car cost - residual value) / 10 + ($0.55/km x private mileage) or (3/7 x rental cost incurred by the employer) + ($0.10 per km x private mileage)
If the cost of petrol is borne by the employee:
3/7 x (car cost - residual value) / 10 + ($0.45/km x private mileage) or (3/7 x rental cost incurred by the employer)
where:
• 3/7 refers to the use of the car outside office hours for private matters which is estimated at 3 out of 7 days in a week.
• "Car cost" refers to the acquisition cost of a car (inclusive of COE) paid or payable at the date of purchase. If the car was "company-registered" (i.e. Q-plate) before 1 Apr 1998, the cost of the car should be pegged to that of an identical private car.
• "Residual Value" is equal to 80% of the Open-Market Value (OMV) of the car if the car was registered on or after 1 Nov 1990. The OMV of the car at the time of purchase can be obtained from the owner’s logbook/log card or car dealer.
Notes:
i) If your employee did not use the car for the full year, the cost of the car can be apportioned.
ii) If you rented a car for your employee's use, the rental cost of the car should be used instead of the car cost.
You may visit
http://www.iras.gov.sg for more information.
Hope this helps!
!.... thanks
