tax on benefits

[tax]

I've agreed on a deal with an employer here but the offer letter breaks the agreed amount down into a salary, a car allowance and a housing allowance. Are the allowances just taxed like income or is there a tax break in having part of the salary attributable to housing?

[Beatrice]

I think that the allowance (housing) is not taxed, which is the reason why it is listed seperately.

[Rob]

I think we need a tax expert here but I think that if the housing allowance is payed directly to you then it is taxed as normal income. If yr rent is paid to the landlord then the tax is less...

[expat]

it all depends on your salary and the amount paid as housing - there can be definite benefits by declaring it separately (don't be told otherwise). Check out the IRAS (Inland Revenue of Singapore) web for details:
www.iras.gov.sg/TaxInfo/taxinfo_frame.htm

[expat]

sorry ... after accessing the above website you then need to click on 'Income Tax' on the far left and click on 'Accomodation Benefits' (one of the points under 'Income Tax and Employees'  ... you will find all you need to know by computing the values into the relevant examples

[Tax man]

If your employer pays your landlord directly you are subject to tax on the housing benefit of either 10% of your salary or the actual value of the house allowance which ever is the lower.

If you are paid the allowance and negotiate your own contract you will pay the tax rate according to your income

[et]

"If your employer pays your landlord directly you are subject to tax..."

This is not quite right.  In order to qualify for that lower of 10% remuneration or Annual Value of premises:
1. Lease must be taken up by the employer.
2. You must not be a director of the company.

The act says "Where an employee takes up a lease arrangement and arranges for the rent to be paid direct to the landlord via the employer, this is a private arrangement between the employer and employee and the amount paid by the employer will be treated as a housing allowance and taxed in full."

Click to see full details on:

Housing benefits

Car Benefits

[This message has been edited by et (edited 08-03-2001).]