Singapore Taxation of Employment Income / Benefits-In-Kind

Only bonus attributable to the Singapore employment should be considered Singapore sourced and reportable for Singapore tax.

Relocation expenses paid directly by the employer or reimbursed by the employer to you should generally be exempt from tax in Singapore under administrative concession.

However, where you receive relocation allowance in cash, such cash allowance would be taxable in full.  Qualifying relocation expenses, such as the following, incurred and not reimbursed by the employer may be claimed as a deduction against the relocation allowance (capped at the amount of the relocation allowance):

• Cost of airfare to bring you, your family members, and pets to the country (if paid by yourself)
• Freight / storage charges to move personal effects
• Cost of temporary accommodation (i.e., hotel or serviced apartment) prior to the commencement of your Singapore employment
• Settling-in expenses (e.g., first purchase of beddings, kitchen appliances, subscription to broadband Internet access and enrolment for immersion programmes for expatriates).

The receipts for the above expenses should be kept to substantiate the claim in case of queries by the IRAS.