IRAS Employment Expenses: What Can Employees Claim?

Introduction

On 21 October 2026, IRAS warned that over 3,000 taxpayers had made claims similar to those in misleading messages circulating online. It also said unsupported claims will be disallowed. So before you add anything to your Singapore tax return, it pays to know which IRAS employment expenses are valid.

If you run HR or finance, this lands on your desk too. Your reimbursement policy decides what staff can claim, so a vague policy turns into vague tax returns.

What Counts as IRAS Employment Expenses?

Employment expenses are costs you pay “wholly and exclusively” to earn your employment income in Singapore. To check any cost, run it through three questions that follow the conditions for allowable expenses:

1. Did I pay for it to carry out my official duties?
2. Is it something my employer hasn’t paid me back for?
3. Is it free of capital or private elements, such as installation fees or housing rent?

All three answers need to be yes. If any answer is no, the cost doesn’t qualify. Employers control the second question, because a cost your company pays back can’t be claimed again.

Which Costs Can Employees Claim and Which Can’t They?

Costs You Can Claim

Work costs that pass all three questions include:

• Meals you pay for clients count, excluding your own share.
• Public transport between your office and a client’s office counts too.
• Your own air tickets and hotel for overseas client trips qualify.
• A separate phone or internet subscription kept for work is fine.
• Referral fees or commission paid to individuals for introducing clients also qualify.

Which Costs Does IRAS Reject?

These costs are non-allowable, even when work is involved:

• Personal meals, housing rent, private subscriptions and phone or internet bills.
• Public transport between home and the workplace.
• Private car expenses, meaning cars with licence plates starting with S.
• Purchases of electronic devices, such as phones and computers, for work.

The full list of allowable and non-allowable examples is worth a look when a cost doesn’t fit neatly into either group.

Can You Claim Work From Home Costs as IRAS Employment Expenses?

Yes, if your employer required you to work from home and didn’t reimburse the cost. Four rules shape the claim:

• You can compare your electricity and telecommunication bills from before and after you started working from home, and claim the difference. IRAS accepts this as a fair way to measure the extra cost.
• A monthly WiFi fee counts only if you set up the WiFi so you could work from home.
• One-time installation or connection fees can’t be claimed, because they are capital in nature.
• If several people in your household work from home, an equal split of the shared cost is accepted.

To see the sums done step by step, look at the worked electricity bill examples before you file.

How Do You Claim Employment Expenses and Keep Records?

You enter the claim in your income tax return and keep the proof for 5 years. To enter it:

1. Open the section “1. Employment Income and Expenses”.
2. Select “Add New”, then “Employment Expenses”.
3. Track each claim in the Employment Expenses Schedule, a spreadsheet you can download.

What to Save for Each Claim

Keep your invoices, receipts, and vouchers, and hand them over only when IRAS asks. A simple folder habit covers it:

• Save the invoice or receipt on the day you pay.
• Add one line on why the cost was for work.
• Note whether your employer paid any of it back.
• Record actual amounts, because IRAS rejects estimates and improper records.

You only hand over proof when asked, so a claim with a ready folder means a quick reply instead of a scramble.

What Happens If an Employment Expense Claim Is Wrong?

IRAS disallows unsupported claims, and deliberate false claims can bring penalties.

What IRAS Can Do

Taxpayers whose claims need further review are contacted and asked for supporting documents. IRAS also says taxpayers with valid, accurate and verifiable claims need not worry.

False, incorrect and unsupported claims can lead to additional tax and penalties of up to three times the tax undercharged. Individuals charged in court may face a fine of up to $10,000, imprisonment of up to three years, or both.

A claim backed by receipts is easy to answer when a review comes, and one without them is hard to defend.

How to Fix an Incorrect Claim

If you spot a wrong claim, correct it straight away. You have three ways to do it:

• Use the “Amend Tax Bill” digital service on myTax Portal to adjust or withdraw claims.
• Submit the “Withdraw Employment Expense Claims” FormSG to withdraw all your claims.
• Chat with IRAS if you can’t use “Amend Tax Bill”.

How Should Employers Handle Reimbursements Around IRAS Employment Expenses?

Employers should decide which costs they reimburse, say so in writing, and keep records, because each choice changes what staff can claim. Writing it down early means staff know what’s theirs to claim, and HR can answer questions without guesswork.

These four habits help:

• Share your reimbursement list with staff, so they know which costs you already pay.
• Record reimbursements as separate lines in payroll, and tell your payroll provider which reimbursements the company pays. Galaxy’s guide to payroll in Singapore covers the wider payroll picture.
• Keep your company’s own expense records tidy too, since corporate tax filing in Singapore also depends on organised records.
• Send unclear cases to IRAS instead of guessing, since it’s easier to check before claiming than to correct afterwards.

Frequently Asked Questions

1. Can I claim professional fees or religious dues as IRAS employment expenses?

Yes, if the three conditions are met. Subscriptions paid to professional bodies or societies are allowable. So are contributions to a mosque building fund, zakat fitrah, and other religious dues authorised by law.

2. Can I claim gifts, grooming, hobby club fees or payment in lieu of notice?

No. Personal grooming or wellbeing and gifts count as private costs. Hobby club subscriptions unrelated to your job are out too. So is payment in lieu of notice that you pay your employer for not serving enough notice before leaving a job.

3. What if my employer reimburses only part of a cost?

The part your employer paid back can’t be claimed, because a claim must be unreimbursed. The official rules don’t say how to treat the remainder, so confirm that part with IRAS first.

4. What should I do if I’m not sure an expense qualifies?

Check with IRAS before you claim it, and skip tips from unofficial sources. The official website is the place to confirm.

5. Which year’s tax return do employment expenses belong in?

The return for a Year of Assessment covers expenses from the year before. For example, expenses incurred in 2025 go under the Year of Assessment 2026, and the records stay until 31 December 2030.

Employees can claim work costs that were for official duties, were not reimbursed, and are not capital or private, as long as they hold the receipts. Client meals, travel between office and client sites, and work-related phone or internet subscriptions can qualify, while commuting, private cars, and device purchases do not. For HR and finance teams, the reimbursement policy and written work-from-home instructions decide what staff can claim. Before the next filing season, check your reimbursement list against the claiming rules so staff know which costs stay theirs to claim. Talk to Galaxy APAC about tax and accounting support for your Singapore team.