Tax on relocation costs

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If the questions below have been already discussed before, please excuse me and direct me to that discussion thread instead but I couldn't find them on my own.

First, I know that I will be classified as NR and pay 15% flat tax on all income associated for the duration of my stay in Singapore for 2005, which is more than 60 days and less than 183 days.

1. If the company paid for the transaction fees for house sale in USA as a part of relocation support, is that taxable income for Singapore tax purpose? Specifically, it is a benefit that occurred prior to Singapore move and paid after the move.

2. If a car is leased by the local rep office of the foreign company, not under my individual name, is that considered taxable as my benefit? The Rep Office doesn't pay any tax to Singapore government and will not report it as "earned income benefits" to the my income statement, i.e. on W-2 form.

3. What about the reimbursement for travel, meals, lodging costs of relocation, not paid as lump sum but paid as expense reimbursement?


Thank you in advance!

[Carpe Diem]

1. If the company paid for the transaction fees for house sale in USA as a part of relocation support, is that taxable income for Singapore tax purpose? Specifically, it is a benefit that occurred prior to Singapore move and paid after the move.

That's a difficult one, but I can tell you that I have paid tax on my relocation expenses. But I got a lump sum paid to me by the company, and took care of expenses. I guess that was a mistake from my side to accept that.

2. If a car is leased by the local rep office of the foreign company, not under my individual name, is that considered taxable as my benefit? The Rep Office doesn't pay any tax to Singapore government and will not report it as "earned income benefits" to the my income statement, i.e. on W-2 form.

If you are using this car, yes I think you will be taxed on this. There is a formula, which I posted on another thread, I will try to find it...
(if you don't please let me know!! ).

3. What about the reimbursement for travel, meals, lodging costs of relocation, not paid as lump sum but paid as expense reimbursement?

All these expenses are paid in the course of relocation, correct? Then you might be in the same case as 1.

My advice would be that you go to visit IRAS, these people are really nice and helpful. When I went there, they explained me how I could save more on my taxes!

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Thank you for your quick reply.
Sounds like you ended up paying tax on just about everything in your case. Did your company equalize the tax burden somehow?
I may visit IRAS eventually as well since I heard several people saying the same thing. Thanks.

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The applicable Benefits In Kind (BIK) for Singapore tax includes any relocation support, housing support, tuition support and auto support.

Taxes on benefit-in-kind items to be based on actual:

Any round sum payment paid to the employee as a relocation deal
Tuition support paid by the employer


Taxes on benefit-in-kind items to be based on computed applicable income:

Housing expense paid by the employer
=your tax rate on 10% of total housing remuneration
Housing expense reimbursed to you as earned income
=your taxt rate on the total amount

Auto support is based on multiple rules, depending on buy versus lease and who pays for gas and etc.

i.e. If the company leases the car for you and you pay for your own gas
= your tax rate on the acessible income based on computed auto allowance
= tax rate x 3/7(total remuneration)+personal mileage x $0 (if you pay for your own gas) or $0.10 if company pays for gas


There are many rules like this that may be helpful if you are soon-to-be-an-expat in Singapore. If anyone wants more information, let me know.
I have a nice tax guide that spells all these out pretty nicely.

[Carpe Diem]

Can you please email me your tax guide?
Thanks.