HRSINGAPORE Community Discussions

Mobile Phone Reimbursement

QUESTION

Dear all,

Would like to clarify with any different between mobile phone reimbursement and mobile phone allowance. My HR business partner mentioned it is taxable income to employee disregard reimbursement or allowance.

Accordingly to my understanding, when it is mobile phone allowance, it is subject to income tax but reimbursement will not attract tax.

Seek for your precious opinion on this.

Tim

 


 

REPLIES & COMMENTS

REPLY 1

General Tax Treatment by IRAS
Allowances and Reimbursement

Allowance
A regular cash / fixed monthly payment given to employee. When is it taxable?
- Full amount is taxable unless it is specifically exempted from income tax or is covered by an existing administrative concession
- Taxed in the year the allowance is given.

Reimbursement
A regular cash / fixed monthly payment given to employee. When is it taxable?
- Full amount is taxable unless it is specifically exempted from income tax or is covered by an existing administrative concession
- Taxed in the year the allowance is given.

Rose

 


 

REPLY 2

Yes reimbursement is not taxable so they must submit their hp bill. But hp allowance is taxable and bill submission not necessary.

Lula

 


 

REPLY 3

As long as it is a fixed sum of allowance monthly, it will be subjected to income tax. Mobile phone reimbursement is not taxable on the individual.

Eileen

 


 

REPLY 4

Allowances and Reimbursement

Allowances - A regular cash / fixed monthly payment given to employee.

When is it taxable?
Full amount is taxable unless it is specifically exempted from income tax or is covered by an existing administrative concession
Taxed in the year the allowance is given.

Reimbursement - A payment given to employee for what he/she had incurred.

When is it taxable?
Reimbursement of private expense is taxable.
Taxed in the year the expense is incurred.

Evelyn

 


 

REPLY 5

You are correct.

Mobile phone allowance is taxable and it attracts CPF contribution whereas mobile phone reimbursement is not taxable and does not attract CPF contribution.

Teresa

 


 

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