Employee claim
Can you expense off petrol claims made by your employees as a tax deduction? Answer is NO.
How do you structure these claims?
1. Pay a fixed transportation allowance: IRAS will allow this tax deduction, however, you have to pay CPF on this allowance. Your employee will be taxed on this allowance.
2. Get your staff to take a public transport.
3. You can purchase a business vehicle - G plated vehicles. Why?
a. You can claim petrol, repairs and other related expenses. (except for fines & summons)
b. You are given a capital allowance deduction.
c. You can advertise your company on your business vehicle
d. You need not pay CPF and your employee is not taxed for using the vehicle.
4. Contract out a chauffeur position.
a. Save you the driving, gives you more time to prepare for your sales meeting.
b. Expense off this service received and get a tax deduction.
c. Move the maintenance of a car and driver to another person.
Thursday, May 3, 2007
Private Car - Part Two
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2 comments:
Why don't we do everything online leh. Then doneed to leave office, doneed to leave house, doneed to leave chair also can. Err, except for toilet break of course.
That's the whole idea of setting up online businesses?
But can you claim for expenses like buying a dog? I mean, security right? We all need security, so can I claim for the purchase of my dog and dog food??
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