Singapore
Reimbursement for using a private vehicle for business purposes
For mileage claims in Singapore in 2026, IRAS does not prescribe a standard rate per kilometre. Your employer sets the rate, and the reimbursement should be reasonable. Reimbursement for qualifying business mileage in your own car is not taxable to you; private mileage and fixed monthly transport allowances are taxable.
Which journeys qualify for non-taxable mileage reimbursement?
IRAS identifies these trips:
- Between the office and an external business meeting venue, such as a client's office.
- Between home and the airport for an overseas business trip.
- Between home and an external business meeting venue.
- Between home and the office when working overtime, subject to the overtime conditions.
The overtime concession applies to occasional work outside normal hours, including off days, weekends and public holidays, with a payment policy generally available to all employees. A policy restricted to employees at lower levels also qualifies. Ordinary commuting and other private journeys should be kept separate.
Parking, ERP and other car expenses
The tax treatment depends on what the employer pays for, not just whether you call it a transport claim.
| Payment | Employee income-tax treatment |
|---|---|
| Parking for a client meeting | Not taxable |
| Reimbursement of ERP charges for work | Not taxable |
| Fixed ERP allowance | Taxable |
| Parking your own car at or near the office for ordinary commuting | Taxable |
| Parking your own car at the airport during a business trip | Taxable |
| Payment of taxes, repairs or maintenance for your own vehicle | Taxable |
Check whether your agreed mileage rate includes petrol and whether parking and ERP are claimed separately. Avoid claiming an expense twice.
Calculate a company mileage claim
If your employer agrees S$0.65 per km, a 40 km qualifying journey gives a claim of 40 × S$0.65 = S$26.00. This rate is only an example, not an IRAS rate or a recommended amount. Using it does not automatically make a payment tax-free. Use the rate and eligible distance approved under your company's policy.
Reimbursement is different from a business tax deduction
A mileage reimbursement can be non-taxable to the employee while being non-deductible for the employer. IRAS generally disallows a company's expenses for private cars, including reimbursement of an employee's S-plated car costs, even for business use. Commercial vehicles and certain other vehicle arrangements have separate rules.
You also cannot claim transport expenses for your own private motor vehicle as an employment-expense deduction simply because your employer did not reimburse them.
Keep a mileage log for your claims
For each journey, record the date, start and destination, business purpose and kilometres. Keep the company rate, claim approval and relevant parking or ERP evidence with the trip record. Identify personal journeys and record the reason for any overtime trip so payroll can apply the correct treatment.
Motolog helps you record business trips automatically, organise a mileage log and calculate claims using your company's custom rate. Review each trip and the supporting documents before submitting it to your employer.