Can a Singapore company pay rent for the accommodations of its directors?
Yes, that is possible. This benefit comes under the umbrella of benefits-in-kind and will have certain taxable implications for the director in Singapore. This term benefits-in-kind refers to benefits received by employees from the employer in non-cash form. In general, the taxable amount of the rental benefit in Singapore is lower than the rent paid and is derived as follows: • If the director’s annual salary is less than the annual value of the rental property, the taxable amount is the annual value of the property. • If the director’s annual salary is more than the annual value of the rental property, the taxable amount is the lower of the a) annual value of the property; or b) 10% of the annual compensation. What is meant by the annual value of the property? It is the market rent the property can reasonably expect to fetch for the year as determined by the authorities. In most cases, this value is a little lower than the actual rental prices on the street. A properly structured com
