Select the correct car formula
For a new employer-owned car from YA 2020, the annual value is three-sevenths of the sum of one-tenth of cost less PARF rebate and actual running costs. Second-hand and renewed-COE cars use different remaining-period formulas. A leased car uses three-sevenths of rental plus employer-paid running costs. Adjust for part-year provision using the source examples. Cash car allowances are instead reported in full.
Distinguish related payments
Office parking for an employee’s own car and airport parking are taxable, while qualifying client-meeting parking, business ERP reimbursement and reasonable business-mileage reimbursement are not. Chauffeur private use is apportioned by private mileage. Incidental home-to-work use of employer-provided commercial vehicles has a stated concession; do not apply that rule automatically to ordinary cars.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
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