Per Diem

Singapore’s per diem compliance regulations for business travel in 2025 stipulate that any per diem allowances exceeding the acceptable rates published by the Inland Revenue Authority of Singapore (IRAS) are taxable. These rates are determined based on the cost of living in different countries. Employers are no longer required to submit rates for approval, as IRAS publishes acceptable per diem rates by country.

For per diem payments:

• If the allowance does not exceed the acceptable rate, it is not taxable.
• If it exceeds the acceptable rate, the excess amount is taxable and must be reported in the employee’s Form IR8A.

Certain business expenses, such as accommodation, airport transfers, inter-city travel for business purposes, and business-related entertainment, are not classified as per diem and are non-taxable when reimbursed based on actual expenses​ iras.gov.sg

For the latest detailed per diem rates per country, you can refer directly to IRAS: IRAS Per Diem Allowance​

SINGAPORE PER DIEM ALLOWANCE CHART

Mileage

Singapore does not have a fixed government-prescribed mileage rate for business trips. Instead, the reimbursement rate depends on the company’s internal policy, as long as the reimbursement is reasonable. According to the Inland Revenue Authority of Singapore (IRAS), mileage reimbursements for business usage are not taxable as long as they are properly accounted for and justified as work-related expenses iras.gov.sg.

If you’re looking for a specific rate, you may need to check with your employer or industry standards.

Paperless

Singapore encourages the use of digital documents. According to IRAS, electronic records, such as receipts, invoices, and other tax-related documents, are acceptable for tax purposes as long as they meet authenticity and accessibility criteria​ iras.gov.sg. Businesses should ensure that digital copies are stored securely and are retrievable for at least five years.

Meals, Benefits & Allowances

Meal allowances paid to employees in Singapore are generally non-taxable if the expense is incurred for business travel and not lavish or excessive​ iras.gov.sg. Benefits provided to employees, such as food or other accommodations, might be considered a taxable fringe benefit if they are not directly related to work duties. Employers need to monitor meal allowances against reasonable expectations based on the location of the business travel​ iras.gov.sg

Singapore’s compliance rules for meals, benefits, and allowances in 2025, as outlined by the Inland Revenue Authority of Singapore (IRAS), include the following key aspects:

1. Tax Treatment of Employee Benefits:

• Meals: Employer-provided meals or food allowances may be taxable unless covered by an administrative concession.
• Accommodation & Housing Allowance: Taxable unless specifically exempt (e.g., business-related accommodation).
• Airfare: Cash allowances for home leave are generally taxable, whereas air passage for business purposes is not.
• Corporate Events: Benefits such as food, door gifts, and prizes at corporate events are usually taxable.
• Medical & Dental Care: Employer-provided medical and dental benefits may be tax-exempt if they are under recognized schemes.

2. Allowances & Per Diems:

• Per diem allowances are acceptable if they fall within IRAS’s prescribed rates, which vary based on destination and duration of travel.
• Transport and car-related benefits are generally taxable unless they qualify for exemptions.

For a more detailed breakdown of tax treatments on employee benefits and allowances, you can refer to the IRAS website​ iras.gov.sg

Sales tax rates

As of 2025, Singapore’s Goods and Services Tax (GST) rate for most goods and services, including business travel expenses such as accommodations, meals, and transportation, has increased to 9%. Certain services and exports may qualify for a 0% GST rate, primarily applicable to international passenger transport and exports of goods​ taxually.com

Key GST Compliance Considerations for Business Travel:

• GST on Accommodation & Meals: Hotels, restaurants, and other hospitality services charge the standard 9% GST.
• GST on Transportation: Domestic transportation services, such as taxis and ride-hailing services, are subject to GST, whereas international flights are zero-rated.
• GST Reclaim: Businesses registered for GST in Singapore can claim input tax credits on eligible expenses. However, foreign businesses that are not GST-registered in Singapore cannot reclaim GST paid​
  taxually.com iras.gov.sg
• Reverse Charge: If your business is importing services, such as consulting or digital services used during travel, you may be subject to the reverse charge mechanism, requiring you to account for GST on these services​ taxually.com

Additionally, businesses meeting the SGD 1 million annual turnover threshold must register for GST, while those below may voluntarily register to benefit from input tax recovery​ taxually.com