IRAS Clarifies Tax Treatment of Travel Related Allowances and Reimbursements

Overtime meal and transport allowances or reimbursements

IRAS had announced in 2005 the concession not to tax meal and transport allowances or reimbursements if these are for overtime work at night on an ad hoc basis. Employers have given feedback that they reimburse their employees for taxi fares for recalling them to work on weekends or public holidays. Employees who do shift work may also occasionally perform overtime work during the day. To address these cases, IRAS has decided to extend the tax concession to allowances or reimbursements for meals and transport for employees working beyond official working hours (whether during their off days, weekends or public holidays), if these are on an ad hoc basis.