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Change in Income Tax Treatment on Staff Discount with effect from Year of Assessment 2011
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IRAS has been proactively seeking public comments and feedback in our continuous review of tax policies and procedures. The tax treatment of benefits-in-kind is one such area where we have been introducing administrative concessions in response to public feedback obtained. Taking into consideration the compliance cost that employers have to incur in tracking staff discounts awarded, IRAS has decided to extend the scope of administrative concession to exempt the taxable benefits on staff discount where the value of an item of good or service offered to employees and their family members, relatives and friends does not exceed the exemption threshold of $500. The change will take effect from Year of Assessment 2011 (i.e. benefit given out from 2010).
More information can be found in the IRAS website under For Employers > FAQ on Tax Treatment of Employee's Remuneration > Staff Discount (http://www.iras.gov.sg/irasHome/page04.aspx?id=10006).
With effect from Year of Assessment 2011, where the exemption is applicable, employers:
Do not have to declare the benefit in the Form IR8A that are to be given to employees and
Do not have to include the benefit when transmitting the income details electronically to IRAS
For clarification, you can email Miss Lim Fei Chen at
feichen@iras.gov.sg or call 6351 3639.
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