TABLE OF CONTENTS
This policy outlines the rules and best practices for reimbursing business-related expenses for employees in Singapore, in line with guidance from the Inland Revenue Authority of Singapore (IRAS).
Invoicing & Documentation
Required for Tax-Free Reimbursement
Expenses must be “wholly and exclusively incurred in the production of income”
Documentation must include:
Supplier invoice or receipt showing:
Supplier name
Date
Description of the expense
Amount
Company name (Horizons Global Technology Pte. Ltd.) is preferred for large vendor invoices (e.g., hotels, printing, events)
Small Cash Expenses
Receipts should be provided where possible
If unavailable (e.g., roadside parking), an employee declaration is required stating:
Date
Amount
Business purpose
Reimbursement & Taxability
Non-Taxable Reimbursements
Business-related travel, accommodation, and entertainment expenses reimbursed on an actual-cost basis are not taxable to employees
Per Diems
Allowed if:
Reasonable
Substantiated by travel itinerary
Excessive or flat allowances without justification may be taxable
Internal policy should set per diem rates by country/city using realistic benchmarks (e.g., government subsistence rates or Mercer data)
Business Travel
Air, Train, Bus
Reimbursable with:
E-ticket
Tax invoice (preferably showing company name)
Car Rental
Reimbursable with:
Rental agreement
Tax invoice
Fuel receipts (itemised separately)
Commuting
Not reimbursable: Travel from home to regular workplace is considered personal and not claimable under IRAS rules
Travel & Mileage Reimbursement
Private Vehicle Use
Singapore does not have a government-mandated per-kilometre rate.
Companies may set an internal rate, often based on AA Singapore motoring cost tables.
Reimbursement should be supported by:
Date and purpose of the trip
Start and end points
Total kilometres travelled
Odometer readings or distance via mapping tools
Tax Treatment
Mileage reimbursements are not taxable if:
They are reasonable
Business-related
Properly documented
Other Local Transport
ERP, Parking, and Tolls
Reimbursable with:
Original receipts or
Electronic statements
Must be submitted as separate line items, not included in mileage claims (unless covered by a fixed car allowance)
Taxi / Grab / Ride-Hailing
Reimbursable for business use
E-receipts or trip summaries are accepted
Entertainment & Gifts
Business Entertainment
Must be for a business purpose
Record:
Names of attendees
Purpose of the event
Overly lavish entertainment may be disallowed as a company deduction but remains non-taxable to the employee if business-related
Wellness & Health Expenses
Employer-paid medical expenses are generally non-taxable if:
Provided to all staff
Or included in a formal company policy
Gym memberships and wellness benefits are taxable unless they qualify under IRAS-approved staff welfare exemptions (minor and infrequent)
GST (Goods and Services Tax)
Companies can reclaim GSTon reimbursed expenses if:
The supplier is GST-registered
The invoice is issued to the company
The expense is business-related and deductible