2. Worked 183 days or more within a calendar year and earned less than $21,000 annually (Scenario 2);

Transcription

1 EXPLANATORY NOTES FOR COMPLETING FORM IR21 Use the Tax Clearance calculator to check if clearance is required! ( >Businesses>Employers>>Tax clearance for Foreign & SPR employees (IR21) ) You are encouraged to e-file the Form IR21 at mytax Portal ( for faster tax clearance. Generally, 80% of e-filed cases will be processed within seven working days. For paper filing, 80% are generally processed within 21 days. Processing of tax clearance may take longer if the information given in Form IR21 is incomplete or when IRAS needs to seek clarification on the employment details submitted. You can check the status of tax clearance, view and print the clearance directive via mytax Portal. Clearance directive can be viewed via mytax Portal three working days from the date Form IR21 is processed. GENERAL 1 The Form IR21 and Appendix 1/2/3 (if applicable) must be completed and signed by the company secretary/director, precedent partner, soleproprietor, manager, honorary secretary/treasurer, representative of a non-resident company or a person authorised by the employer, as the case may be. The name and designation of the authorised person and contact number must be given. 2 If you are e-filing Form IR 21, please refer to the online help at mytax Portal. For the paper Form IR21, please write in black ink and use the format DD/MM/YY for dates. Enter NA for items that are not applicable. 3 Complete and submit this form at least one month before your non-citizen employee ceases employment with you in Singapore (including posting to an overseas location) or plans to leave Singapore for more than three months. If you are not able to give one month s notice, state reason in Section D, item 16 of Form IR21. Unless the Comptroller accepts shorter notice, employers who fail to comply may be liable to a fine not exceeding $1, You are also required to withhold any monies (including overtime pay, leave pay, allowances for transport, entertainment, gratuities and lump sum payments, etc.) due to your employee from the day he notifies you of his intention to cease employment or when you notify him of the termination of employment or posting to an overseas location. If you are unable to withhold monies, state reason in Section D, item 18. If an employer fails to comply and does not give valid reasons, he may be held liable for the tax that is owing by the employee. 5 Do not release any monies to the employee until tax clearance is given or 30 days after the Comptroller has been notified through the Form IR21, whichever is earlier. 6 If there are any changes or further remuneration payable to the employee after tax clearance has been sought, please complete another declaration and indicate the type of Form IR21 in Section A. To indicate: - Additional to report the additional income paid to the employee and the additional monies withheld; or - Amended to report the entire filing details including the revised monies withheld. a) Amended Form IR21 will supersede all other Form IR21 previously submitted for the employee. b) If you are only making changes to the amount of money withheld, please the details via mytax Mail at mytax Portal. 7 Tax clearance is not required for the following categories of employees. If your employees fall under these categories, you do not need to complete Form IR21. However, you are required to submit the employee s income details to IRAS via IR8A or Auto Inclusion Scheme by 1 st Mar: a b c Singapore Citizens Singapore Permanent Residents (SPRs) who are not leaving Singapore permanently after he or she stops working for you. You may obtain a Letter of Undertaking (LOU) from the employee stating that he or she will not leave Singapore permanently. With the LOU, you are not required to seek tax clearance for the employee. This concession, however, does not apply if the SPR is on overseas postings and employment. You are required to seek tax clearance for the SPR employee who is on overseas posting or employment unless he or she meets the conditions listed in Note 1 below. Non-Singapore citizens who: 1. Worked 60 days or less in a calendar year (Scenario 1). This does not apply to directors of a company, public entertainers or individuals exercising a profession, vocation or employment of a similar nature. Year Period No. of Days to Worked 183 days or more within a calendar year and earned less than $21,000 annually (Scenario 2); Year Period No. of Days Income to $18, Worked 183 days or more within a continuous period straddling two years* and earned less than $21,000 annually (Scenario 3); Year Period No. of Days Income to $18, to $19,000 Total 186 *This two-year administrative concession is only applicable to foreign employees who have entered Singapore on or after 1 Jan It does not apply to directors of a company, public entertainers or individuals exercising a profession, vocation or employment of a similar nature. IRIN 112/E1-3/2016 Page 1 of 7

2 4. Worked for three continuous years or more and earned less than $21,000 per year (Scenario 4); Year Period No. of Days Income to $6, to $19, to $8,000 5 Are transferred to another company in Singapore due to: - company merger or takeover; or - restructuring or postings within the same group of companies 6 Are away from Singapore for three to six months for: - training; - business purposes; - overseas posting (See Note 1 below). Note 1 Overseas posting: Tax Clearance is not required for employees who are away for overseas posting provided all the following conditions are met: i. Period away from Singapore does not exceed six months; ii. Employee would return to Singapore to work for the same employer and continue to hold valid work pass under the same employer during the period that the employee is away from Singapore; iii. Singapore employer continues to pay the employee's salary during the said period. The above applies to overseas postings on or after 1 Jan 2016 which are incidental to the employment in Singapore. Thus, tax clearance is still required for cases where the services rendered overseas are not incidental to the Singapore employment. Additional points to note: For Category C - Scenario 1 to 4, you do not need to file Form IR21 if the employee has not been previously employed by another employer in Singapore within the cessation year or the year prior to the cessation year. If you are unsure of the employee's past employment records, please e-file Form IR21 via mytax Portal. You will receive an immediate online notification if tax clearance is not required for your employee. For Scenario 5, you are required to notify IRAS of the transfer via mytax Mail at mytax Portal so that the employee's employment records can be updated. When composing the , please indicate the Nature of Enquiry as Tax Clearance/Form IR21. EMPLOYMENT RECORD (Section D) 8 Date of Arrival Indicate NA or leave blank if the employee has been working in Singapore prior to his employment with your company and date is unknown. 9 Date of Cessation / Overseas Posting Date of Cessation refers to the official last day of service with your company and not the work pass cancellation date or date after offsetting his remaining vacation leave entitlement. It could also refer to the employee s last day of service before an overseas posting assignment. a) Resignation / Termination Employee resigned on , giving one month s notice. Date of cessation will be even though employee may take his remaining leave entitlement from b) Overseas Posting Employee on overseas posting from to Date of Cessation will be Employee s Income Tax borne by Employer When the employee s income tax liability is borne by the employer, the tax that is paid or payable by the employer forms part of the employee s income and it is subject to tax. If the company is bearing the tax partially, please indicate: (i) the amount and type of remuneration on which the tax is borne; or (ii) the amount of tax to be borne by employer and employee respectively; or (iii) whether it is a tax reimbursement Do note that the employee s tax is not considered as borne by the employer if the employer is merely deducting the tax from the employee s salary or withholding his salary for tax clearance purpose. SPOUSE S AND CHILDREN S PARTICULARS (Section E) 11 Employer should fill in the particulars of the employee s spouse and children in the Form IR21 so that the relevant dependant reliefs can be included in the tax assessment. This will help in reducing the employee s tax and the need to revise directive. INCOME TO BE REPORTED IN FORM IR21 (Section F) 12 Income Your employee s remuneration to be shown in this Form are the respective amounts (in Singapore Dollars) due for the year of cessation and the year prior to cessation. If the income details (for the year prior to cessation) had been transmitted electronically to us via the Auto-Inclusion Scheme for Employment Income, reporting of that year s income is not required unless there are changes to be made. Declaration includes income: a) whether it was paid within the year in which it was due; and b) whether it was paid/is payable in Singapore or outside Singapore. It also includes remuneration paid by overseas employer to your employee performing personal services in Singapore. IRIN 112/E1-3/2016 Page 2 of 7

3 13 Bonus, Director s Fee & Allowances State the full amount of bonus or director s fees which were paid /are payable. Bonuses are assessed in the year that an employee becomes entitled to the bonuses: a) Contractual bonus refers to bonuses that are payable in accordance with the terms of a contract of service or a bonus plan adopted by an employer, which cannot be rescinded by the employer without legal consequences. It is regarded as the employee s income in the year specified by the contract or bonus plan. This is usually paid in the year which the employee s services are rendered. Contractual bonus (e.g. 13th month bonus) is payable for the employee s services provided in the year ended 31 Dec 2014 as stated in the employment contract. The employee received the bonus in Feb This contractual bonus will be taxable in the Year of Assessment (YA) 2015 because the bonus was paid for your employee s services rendered in For more examples in relation to contractual bonus, please refer to Out Your Taxes>What is Taxable, What is Not>Income from Employment>Salary, Bonus, Director's Fee, Commission and Others b) Non-contractual bonus refers to bonuses which can be rescinded by the employer at any time prior to the actual payment of the bonuses without legal consequences. It is regarded as the employee s income on the date on which bonuses were paid. Where there are more than one non-contractual bonus payments made to the employee during the year, please enter the date of last payment. An employer informed his employees on 1 Dec 2015 of his decision to pay non-contractual bonuses (for the year ending 31 Dec 2015) on 1 Feb The employees were entitled to non-contractual bonuses on 1 Feb 2016 when the bonuses were paid. This bonus should be reported in the Form IR21 as Non-Contractual bonus with date of payment indicated. c) Director s fees are regarded as paid to the director on the date on which the fees are voted for and approved at a company s Annual General Meeting or Extraordinary General Meeting of that calendar year. Where the company held more than one meeting during the calendar year to approve payments of director s fees for the same financial year, please enter the date of approval of the latest meeting held. For more information on the tax treatment of director s fees, refer to Guides>Keyword Search: Director (click on Search)> Income Tax: Tax Treatment of Director s Fees and Bonuses from Employment d) Allowances are taxable unless they are specifically exempted from income tax or are covered by an existing administrative concession. Please refer to Out Your Taxes>What is Taxable, What is Not>FAQs on Tax Treatment of Employee Remuneration (Allowances, Benefits-in-kind). Examples: Transport / Entertainment SRS contributions by employer (from Year of Assessment 2009); Cash top-ups to CPF Minimum Sum Topping-up Scheme by employer (from Year of Assessment 2009); and Any other monetary benefits provided /paid by employer. 14 Compensation for Loss of Office Generally, severance payments made to compensate for the loss of employment are not taxable to the retrenched employee because they are capital receipts. However, other payments such as salary in-lieu of notice and gratuity for past services are taxable as they are not payments for loss of office (refer to Guides> Retrenchment Pay that constitutes Payment for Loss of Employment is not taxable ) Where the employee has been paid compensation for loss of office, employers are required to provide the following information together with the Form IR21 submission: 1. Reasons/ circumstances leading to the termination of employment; 2. Basis of arriving at the lump sum payment and factors taken into consideration in arriving at the amount; 3. Copy of the extract from the Employment Contract (or its equivalent) on the relevant clauses relating to termination of employment 4. Copy of the termination agreement / letter. For Bulk Retrenchment/Termination, employers should check with IRAS on the taxability of the payments once the retrenchment package has been finalised by sending in the following details via mytax Mail: a) Reasons/circumstances leading to the bulk termination of employment; b) Detailed breakdown of the retrenchment package and basis of arriving at each component; c) Number of affected employees with a breakdown on Singaporeans and Foreigners d) Name and contact number of the person administering the payout. IRAS will then advise on the taxability of each component and employer needs to declare only the taxable items in Section F - item 4e of the Form IR Employer s contributions to any Pension/Provident Fund constituted outside Singapore Contributions made by an employer to a pension/provident fund constituted outside Singapore in respect of an employment exercised in Singapore are taxable. These contributions are taxable even if the employee had ceased employment in Singapore at the time the contributions were made. Concessionary Tax Treatment As a tax concession, the employer s contributions to an overseas pension / provident fund are not taxed provided that all the following conditions are met: a) The contributions are mandatory under social security schemes operated, regulated and supervised by the employee s home country Government for employees even though they are working outside their home country; and b) The contributions are not borne by or no deduction is claimed by any permanent establishment/company in Singapore. The above concession will also not apply if the employer is: - an investment holding company or a tax exempt body (with effect from 1 Jan 2014); - a service company which adopts the cost plus mark-up basis for its tax assessment (with effect from Year of Assessment 2016, i.e. for accounting period ending in 2015) IRIN 112/E1-3/2016 Page 3 of 7

4 If tax concession is applicable, provide the following details as an attachment to the Form IR21: Name of the overseas pension/provident fund; Full amount of the contribution; Whether the contributions are mandatory under social security schemes operated, regulated and supervised by the employee s home country Government for employees even though they are working outside their home country; and Whether the contributions were charged to the accounts of or deductions were claimed by a Singapore permanent establishment. Do not report the employee s share of the contributions in the Form IR Excess/ Voluntary contributions to CPF by employer a) CPF Contribution for Non-Singapore Citizens Employer s contributions to CPF for non-singapore citizens are not compulsory under the CPF Act. Such contributions are considered voluntary contributions and are taxable as part of your employee s income. State the amount of the employer s voluntary CPF contributions, if any. b) CPF Contributions for Singapore Permanent Residents Employer s contributions for Singapore Permanent Residents which are more than the compulsory contributions under the CPF Act or exceed the overall income cap (as published by the CPF Board on its website are taxable as your employee s income. State the amount of employer s excess contribution if any, in Form IR8S (downloadable from IRAS website) and send it to IRAS via mytax Mail at mytax Portal. 17 Gains from Employee Stock Option Plans (ESOP)/ Share Ownership Plans (ESOW) Gains or profits derived by the employee, directly or indirectly by reason of any office or employment from the exercise, assignment, release or acquisition of any right or benefit; or grant or vesting of any shares under an ESOW Plan is taxable. The gain is the difference between the open market price of shares on the date of exercise/ vesting or date the selling restriction is lifted as the case may be and the exercise price/ price paid for the shares.. Tax exemptions under the ERIS (Start-ups)/ERIS (SMEs)/ERIS (All Corporations) Schemes will NOT apply under circumstances where the employee receives cash compensation for the release of his right or benefit to acquire shares in a qualifying company by reason of resignation or termination of employment due to misconduct. For such circumstances, state the full amount of cash compensation under Section F - item 4(b) Allowances of Form IR21. DO NOT complete Appendix 2. ESOP/ESOW granted from 1 Jan 2003 while exercising employment in Singapore i) Any gain from the exercise of such ESOP will be taxed in Singapore, regardless of where the ESOP is exercised. Such gain is taxable in the year in which the ESOP is exercised. ii) Any gain from such ESOW (with vesting imposed) will be taxed in Singapore, regardless of whether the employee is in or outside Singapore on the date of vesting. Such gain is taxable in the year in which the shares are vested. For ESOW Plans with no vesting imposed, the gain will be taxed in the year in which the shares are granted. iii) Any gain from such ESOP/ESOW (with selling restriction) will be taxed in Singapore in the year in which the selling restriction is lifted. iv) Where such ESOP/ESOW have yet to be exercised or are unvested at point of tax clearance, the deemed exercise rule would apply. The deemed gain is the difference between the closing price of the share as at one month before the date of cessation of employment or date of grant, whichever is later and the exercise price/ price paid for the share. If the deemed date falls on a Sunday or public holiday, the market price used should be the closing price on the last trading day prior to the Sunday or public holiday. Where the actual gain is less than the deemed gain, employees may make an application for re-assessment within 4 years. Please complete the details of taxable gains in Appendix 2 (I) to (IV). The total gross amount of gains from ESOP/ESOW to be reported in Section F - item 4(i) of Form IR21 should tally with the total amount in Section E of Appendix 2. Unexercised ESOP/Unvested ESOW granted from 1 Jan 2003 while exercising employment in Singapore and tracking option applies The deemed exercise rule will not apply if the employer has been granted approval to track all unexercised ESOP or unvested ESOW and to seek tax clearance on such gains when the income realization event occurs. Where applicable, please: a) cross the box ESOP / ESOW granted on or after 1 Jan 2003 and tracking option applies under Section F - item 4(i) of Form IR21; b) provide the details in Form IR21 Appendix 3 (downloadable from IRAS website); and c) furnish the Letter of Undertaking to collect and pay the tax thereof to the Comptroller. Unexercised ESOP/Unvested ESOW granted before 1 Jan 2003 while exercising employment in Singapore Where the employee has such unexercised ESOP/ESOW as at the point of seeking tax clearance, please give details separately and cross the box ESOP/ ESOW granted before 1 Jan 2003 under Section F - Item 4(i) of Form IR21. If such ESOP was exercised or ESOW had vested before the employee s departure from Singapore, please complete an additional Form IR21. ESOP/ESOW granted while exercising employment overseas Gains from such ESOP exercised or ESOW which vest in Singapore, on or after are not taxable. At A Glance: Taxability of ESOP/ESOW Plans ESOP/ESOW plan granted while an individual is exercising employment in Singapore Granted before 1 Jan 2003 Granted on or after 1 Jan 2003 The gains are taxable in Singapore if the ESOP/ESOW plans are exercised/ vested while the employee is physically present in Singapore or holding an employment in Singapore. The gains are taxable in Singapore. IRIN 112/E1-3/2016 Page 4 of 7

5 ESOP/ESOW plan granted while an individual is NOT exercising employment in Singapore 1 Exercised or vested before 1 Jan 2002 Exercised or vested on or after 1 Jan 2002 The gains are taxable in Singapore if the ESOP/ESOW plans are exercised/ vested while the employee is physically present in Singapore or holding an employment in Singapore. The gains plans are not taxable in Singapore. Please note that you need NOT report such gains. 1 This does not apply to an employee who was temporarily away as such absence from Singapore would be treated as incidental to his Singapore employment. EXPLANATORY NOTES FOR COMPLETING APPENDIX 1 Complete Appendix 1 if benefits-in-kind are provided to the employee. Where benefits provided are shared with other employees, to apportion and report only the amount applicable to the employee concerned only. (A) Value of Place of residence - The following tax treatment is applicable up to (Year of Assessment 2014) The taxable benefit is annual value of the place of residence as shown in the respective Property Tax Bill/rent paid by employer or 10% remuneration, whichever is lower, less rent paid by employee. Rent paid by the employer is the difference between the gross rent (includes monthly maintenance charges) and rental for furniture and fittings. Where the place of residence is provided for part of the year, the taxable benefit is apportioned based on the no. of days it was provided. Employment Period: to (365 days) Place of Residence provided: to (90 days) Annual Value/Rent paid by employer (A5) $4, (apportioned based on AV of $40,000/2 employees x 90/365 days) Taxable Value of Furniture & Fittings (B9) $ (apportioned based on the share applicable to the employee) PUB bills (B13) $ No. of employee(s) sharing the premise: 1 (indicate 1 as Annual Value/Rent paid by employer applicable to the employee concerned.) Employee s Remuneration for the whole year: $180,000 (i.e. Total of (Section F- Items 1 to 4(i) of Form IR21 + F12 - Appendix 1) Value of Place of Residence (A6) = Lower of 10% of employment income 2 or AV, less rent paid by employee (A4) = Lower of 10% [(180,000 x 90/365) ] or 4, ,000 = $2, Taxable benefit of accommodation, Furniture & Fittings (A7) = $2, (A6) + $78.40 (B9) = $2, For this case, it refers to 10% [(employee s remuneration x No. of days premises was occupied/ No. of days the employee was employed in the year) + B9 + B13] Where the place of residence provided to an employee is a service apartment (not within a hotel building), the basis of assessing the taxable value will be as described above. Rental paid for hire of furniture & fittings, utilities & housekeeping services should be declared as benefits-inkind in Appendix 1. This item must also be declared for cases where no salary is paid but employee is provided with place of residence. However, if the service apartment is located within a hotel building, the hotel accommodation rates, in Section C of Appendix 1, can be applied to compute the taxable value of the accommodation. (B) Value of furniture & fittings/driver/gardener - The following tax treatment is applicable up to (Year of Assessment 2014) Calculate the value of the benefits-in-kind using the rates shown in Section B of Appendix 1. Housing was provided with furniture (hard/soft), fans (2 units), air-cooler, TV and refrigerator to 2 employees from to (90 days) in the year PUB bills paid by employer for the said period was $500. Calculation of the benefits-in-kind: Furniture: Hard & Soft $120 x 90 days/365 days x 1/2 employees $14.79 Refrigerator (1 unit) $120 x 90 days/365 days x 1/2 employees $14.79 TV (1 unit) $360 x 90 days/365 days x 1/2 employees $44.38 Fan (2 units) $12 x 90 days/365 days x 1/2 employees x 2 $ 2.96 Air cooler (1 unit) $12 x 90 days/365 days x 1/2 employees $ 1.48 Period of accommodation provided by employer is from to The value of benefits-in-kind to be entered under Section B: Value of Furniture & Fittings/Driver/Gardener is as follows:- Items A No. of Unit B Rate/unit p.a ($) Value = A x B x ( No. of days/365) ($) Please apportion the values to the share applicable to this employee 1. Furniture : Hard & Soft $ $ Refrigerator Video Recorder 1 $120.00/ $ TV Radio Amplifier Hi-Fi/Electric Guitar 1 $ Others (see Explanatory Note Appendix 1) Fans, Air cooler 4.44 ( ) 9. Taxable Value of Furniture & Fittings (total of B1 to B8) to be included in the e computation of Taxable Value of Place of Residence (item A6) above PUB/Telephone/Pager/Suitcase/Golf bag & accessories/ Camera/Servant 13. Taxable Value of Driver/Gardener/PUB, etc (Total of B10 to B12) Actual Amount IRIN 112/E1-3/2016 Page 5 of 7

6 Annual rate for other benefits-in-kind (For items not listed below, please give details if any): a) Fan, Toaster, Iron, Air cooler, g) Fax Machine Light Fittings $12.00 i) $240 per annum + Total telephone bill paid by employer for the year b) Vacuum Cleaner (if employer pays for the telephone charges linked to the fax machine). c) Cooker, Water Heater, ii) $240 per annum (if employee pays for the telephone charges). Jet-Steam Oven iii) Full cost of the fax machine incurred by employer in the year of purchase (if employee retains the fax machine when he resigns) d) Juicer, Blender, Kettle iv) Full cost of the fax machine incurred by employer in the year of e) Floor Polisher purchase + the telephone bill paid by employer (if case is similar to (iii) f) Lawn Mower above and employer pays for the telephone charges) (C) Value of Hotel Accommodation - The following tax treatment is applicable up to (Year of Assessment 2014) Calculate the value of hotel accommodation using the rates shown in Section C of Appendix 1. Hotel accommodation was provided to the employee, his wife and child, aged 5 years from to (151 days). Calculation of taxable value:- Self: 1 person x $3000 p.a. x 151 days/365 days = $1, Wife: 1 person x $3000 p.a. x 151 days/365 days = $1, Child: 1 child x $600 p.a. x 151 days/365 days = $ Basic Salary (say $25,000 per annum): 2% x (151 days/365 days x 25,000) = $ Value of Hotel Accommodation under Section C7 $2, (D) Value of Benefits in-kind provided from (Year of Assessment 2015 onwards) a) Place of Residence 3 is assessed based on Annual Value (AV) of premises less rent paid by employee; b) Furniture and Fittings^ is assessed based on whether the premises is partially or fully furnished. The applied rate is at: - 40% of the AV if the premises is partially furnished or - 50% of the AV if the premises is fully furnished Partially furnished refers to only fittings (e.g. lightings, air-conditioner/ceiling fan, water-heater) provided whereas fully furnished refers to both fittings and furniture/household appliances provided. c) Where the place of residence provided to an employee is a service apartment (not within a hotel building), report the benefits under Section D. However, if the serviced apartment is located within a hotel building, report the actual cost incurred by employer, less amount paid by employee under Section E d) Gardener is assessed based on actual wages paid by employer; & e) Value of Hotel Accommodation is assessed based on the actual costs incurred by the employer for the hotel stay, less the amount paid by employee. For more details, please refer to Treatment of Employee Remuneration 3 Where the place of residence provided to an employee is a service apartment (not within a hotel building), the basis of assessing the taxable benefits of accommodation, furniture and fittings will be as described above and to be declared under Section D of Appendix 1. However, if the service apartment is located within a hotel building, the benefits will be assessed as actual cost incurred by employer, less amount paid by employee under Section E of Appendix 1. ^ The Annual Value (AV) of a property can be found on the property tax bill or via IRAS e-valuation List Service. Accommodation and related benefits provided by employer (assuming the employee worked from ) Place of Residence 1 Period which the premises was provided: to Number of days premises occupied: 90 days (Assuming that the premises is shared by 2 employees) Annual Value (applicable to the employee) (D4a): $4, (AV of 40,000/ 2 employees x 90/365) The Premises is: (D4b) fully furnished Value of Furniture and Fittings (D4c) $2,465.76(50% x $4,931.51) Taxable value of Place of Residence 1 (D7) $7, ($4, $2,465.76] Less: Rent paid by employee for Place of Residence 1(D6) $2, Taxable value of Accommodation, Furniture and Fittings (D15) $5, PUB bills (D16) $ Gardener (D18) $1, Taxable value of utilities and housekeeping costs (D19) $1, Hotel Accommodation (E1) $2, Taxable value of Hotel Accommodation (E2) $2, Total value of benefits-in-kind (D15+D19+E2) $9, (E) Leave Passage Calculate the taxable value of leave passages as shown in Table 1. Table 1: Taxable Value of Leave passages Leave passage provided to: Value of benefit Expatriate employees - 20% of the cost of one home leave passage provided to the employee, his wife and 2 passages for each child annually - full cost of any subsequent leave passages provided to the employee, his wife and children - full cost of any leave passages provided to other family members Non-expatriate employees (including - full cost of any leave passage provided to employee and his family Singapore Permanent Residents) For more details, refer to Treatment of Employee Remuneration>Air Passage. IRIN 112/E1-3/2016 Page 6 of 7

7 (F) Car benefit Calculate the car benefit as shown in Table 2. Table 2: Calculation of Car Benefit Car Benefit Car provided by employer & petrol cost borne by Employee Car provided by employer & petrol cost borne by Employer Car rented by employer & petrol cost borne by Employee Car rented by employer & petrol cost borne by Employer Value of Benefit 3/7 x (Car Cost Residual Value)/10 + ($0.45/km x private mileage) 3/7 x (Car Cost Residual Value)/10 + ($0.55/km x private mileage) 3/7 x Rental Cost incurred by the employer 3/7 x Rental Cost incurred by the employer + ($0.10km x private mileage) Notes i) 3/7 refers to the use of the car outside office hours for private matters, which is estimated at 3 out of 7 days in a week. ii) Car Cost refers to the acquisition cost of a car (inclusive of COE) paid or payable at the date of purchase. If the car is not provided to the employee for the full year, the cost of the car can be apportioned based on the number of days that the car was provided to employee in the year. If the car was company registered (i.e. Q-plate) before 1/4/1998, the cost of the car should be pegged to that of an identical private car. iii) Residual Value is equal to 80% of the Open-Market Value (OMV) of the car if the car was registered on or after 1/11/1990. The OMV of the car at the time of purchase is reflected on the vehicle registration card. iv) If you rented a car for your employee's use, the rental cost of the car should be used instead of the car cost. For more information on how to compute taxable value of second-hand car and car with renewed COE, refer to Treatment of Employee Remuneration>Car and Car-related Benefits. EXPLANATORY NOTES FOR COMPLETING APPENDIX 2 Complete Appendix 2 by providing details of the gains from ESOP/ESOW derived by the employee based on the following schemes: Section A - Employee Equity-Based Remuneration Scheme (EEBR) Section B Equity Remuneration Incentive Scheme (ERIS) SMEs (formerly known as EEEBR) Section C Equity Remuneration Incentive Scheme (ERIS) All corporations (formerly known as CEEBR) Section D Equity Remuneration Incentive Scheme (ERIS) Start-Ups For more details of the various types of schemes and tax treatments, please refer to the following e-tax Guides at Link> e- Tax Guides: - Equity Remuneration Incentive Scheme (ERIS) (Second Edition) Date of Publication: 26 Apr Tax treatment of Employee Share Options and Other Forms of Employee Share Ownership Plans (Second Edition) (Date of Publication: 24 Jun 2013) When completing the details of stock options/awards for (ERIS) SMEs, (ERIS) All corporations and (ERIS) Start-Ups schemes in Appendix 2, please ensure that your company s stock plan had satisfied the required vesting or holding period as well as the qualifying and administrative requirements as elaborated in the e-tax Guides. Tax exemptions under the (ERIS) SMEs, (ERIS) All corporations and (ERIS) Start-Ups schemes would NOT apply to circumstances where the employee receives cash compensation for the release of his right or benefit to acquire shares in a qualifying company by reason of: i) Resignation; or ii) Termination of employment due to misconduct. For such employees, state the full amount of cash compensation under Section F - item 4(b) Allowances of Form IR21. DO NOT complete Appendix 2. The above information is intended for better general understanding and is not intended to comprehensively address all possible issues that may arise. While every effort has been made to ensure that the above information is consistent with existing policies and practice, should there be any changes, IRAS reserves the right to vary our position accordingly. IRIN 112/E1-3/2016 Page 7 of 7