Quick answer
In Singapore you generally cannot claim car expenses for a private (S-plate) car, even if it is used wholly for business. Motor vehicle expenses on private cars are specifically prohibited from deduction under the Income Tax Act, and the GST is blocked too. Only commercial vehicles such as vans and lorries qualify. Business taxi, Grab, and public transport fares are deductible.
Are car expenses tax deductible in Singapore?
For a private car, no. This is one of the sharpest differences between Singapore and other countries. Motor vehicle expenses incurred on private (S-plate) cars, and on Q-plate or RU-plate business cars registered on or after 1 April 1998, are specifically prohibited from deduction under the Income Tax Act. The prohibition applies even if the car is used entirely for business, and even where the cost is paid as a reimbursement. The expenses caught include petrol, servicing, repairs, parking, and road tax.
Commercial vehicles are treated differently: expenses on goods and commercial vehicles such as vans, lorries, and buses are deductible. See the wider Singapore expense rules for how this fits with GST.
How much can you claim?
| Vehicle or cost | Income tax | GST input tax |
|---|---|---|
| Private car (S-plate) expenses | Not deductible | Blocked |
| Goods or commercial vehicle (van, lorry, bus) | Deductible | Claimable |
| Taxi, Grab, ride-hail for business | Deductible | Claimable on local fares |
| Public transport (MRT, bus) for business | Deductible | Fares are largely fare-based |
Worked example. A company owns an S-plate car used only for client visits, spending $9,000 a year on petrol, servicing, and parking. None of it is deductible and none of the GST is claimable, because the private-car prohibition applies regardless of business use. If the same trips were taken by Grab for $4,000, the full $4,000 would be deductible and the 9% GST on local fares claimable with receipts.
Record-keeping requirements
Because private car expenses are not deductible, the practical record-keeping focus is on business transport that is: keep the receipts for taxi, Grab, and ride-hail fares, and for any commercial vehicle running costs, noting the business purpose. The GST on local fares of S$1,000 or below can be claimed with a simplified tax invoice or receipt. Records must be kept for five years.
How to claim, step by step
- Identify whether the vehicle is a private car (S-plate) or a commercial vehicle.
- For a private car, do not claim the running expenses; they are prohibited even for business use.
- For a commercial vehicle, deduct the running costs and claim the GST.
- For business journeys, use and claim taxi, Grab, or public transport fares instead.
- Keep the receipts and note the business purpose of each trip.
- Retain records for five years.
Common mistakes
- Claiming petrol, servicing, or parking on a private (S-plate) car used for business. It is prohibited.
- Claiming GST input tax on a motor car, which is blocked.
- Assuming a reimbursement of private car costs becomes deductible. It does not.
- Treating taxi and Grab fares as non-claimable; these business travelling expenses are deductible.
- Confusing a commercial vehicle (deductible) with a private car (not deductible).
Software that helps
Because the deductible transport is fares rather than car costs, the value is capturing every business taxi and ride-hail receipt.
- Grab for Business issues itemised receipts and reports for business rides.
- ExpenseFlow captures taxi, Grab, and commercial-vehicle receipts, applies the correct GST treatment, and syncs them to Xero or QuickBooks, while flagging private-car expenses that are not claimable.
- Xero Singapore edition maps local fares to the right GST code automatically.
FAQ
See the answered questions above for the private-car prohibition, commercial vehicles, GST, taxi fares, and reimbursements.