Expense Reimbursement policy in Singapore



Modified on: Tue, 30 Sep, 2025 at 2:44 PM

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





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