09 Feb 2010

Deductibility of Singapore Travel Expenses

by Darren

In Singapore generally travel expenses are deductible for your business if you can substantiate the claim and prove that the expense was incurred in the "production of assessable income". Any expenses incurred for the use of a motor car are not eligible for a deduction except where the expense relates to

  • taxis,
  • cars registered and used wholly outside Singapore,
  • cars used for a rental car business,
  • company cars (Q-plate) registered before 1 April 1998, and
  • cars used for the business of driving instruction by licensed driving schools or instructors.


Expenses incurred in traveling between two places of employment, or a place of employment and a place of business, rank for deduction where the taxpayer does not live at either of the places and the travel is undertaken to enable the claimant to engage in income-producing activities. As an employers if you pay a traveling allowance or car allowance to certain employees these would be deductible if work-related such as travel from office to business venues, eg clients’ premises. In practice, you need to convince the Tax Comptroller that the expenses meet the “wholly and exclusively incurred” criteria. You will need to keep proper records and provide following details in your tax return if you make a claim for these expenses:

  • Mode of public transport;
  • Date and place visited;
  • Name and address of the person contacted;
  • Purpose of the visit; and
  • Amount incurred.

Next entry: Record Keeping I: a painful job for the small business
Previous entry: Australian Incidental Travel Expenses


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