IRAS has flagged over 3,000 taxpayers for false, incorrect or unsupported employment expense claims. Some advice circulating online and through messages is misleading.
Can I Claim a Percentage of Meals or Entertainment?
No. Employment expenses are deductible only if they are wholly and exclusively incurred in performing your job, not reimbursed by your employer and not private or capital in nature.
Not Claimable
- Entertainment and client or colleague meals
- Personal and overtime meals
- Home-to-office travel and private car expenses
- Estimates or flat percentages without proper records
Generally Claimable (If Not Reimbursed)
- Official business travel, such as transport from office to a client’s premises or overseas business trips
- Incremental utility and telecommunication costs from working from home, supported by records
Risks
Incorrect claims may attract penalties of up to 3 times the tax undercharged, and in serious cases prosecution, with fines of up to S$10,000, imprisonment of up to three years, or both.
If you have made an incorrect claim, correct it promptly through the myTax Portal. Contact us for advice on individual tax compliance.