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Guide To Understanding The Additional Registration Fee (ARF) For Vehicle Registration In Singapore

It’s not only COE that makes cars so expensive in Singapore

Singapore is the most expensive country in the world to own a car, and it’s not only because of the Certificate Of Entitlement (COE) system. One other reason why cars in Singapore are so expensive is because of the Additional Registration Fee, commonly known as the ARF.

The ARF is a tax imposed on all vehicles, including cars, motorcycles, scooters, taxis, buses and commercial vehicles, during its registration. It is calculated based on the open market value (OMV) of the vehicle and also the vehicle type.

ARF For Cars & Taxis In Singapore

For cars and taxis in Singapore, the ARF to be paid is as follows.

Vehicle Open Market Value (OMV) ARF Rate (% of OMV to pay)
First $20,000 100%
Next $20,000 ($20,001 to $40,000) 140%
Next $20,000 ($40,001 to $60,000) 190%
Next $20,000 ($60,001 to $80,000) 250%
Above $80,000 ($80,001 and above) 320%

For example, for an entry-level vehicle like the Kia Cerato 1.6 EX (A), which has an OMV of $12,819, the ARF would be $12,819. For a luxury sedan like the Audi A8 L 3.0 (A), which has an OMV of $79,392, the ARF payable is higher at $134,480.

OMV: $79,392

First $20,000 $20,000 (100%)
Next $20,000 ($20,001 to $40,000) $28,000 (140%)
Next $20,000 ($40,001 to $60,000)  $38,000 (190%)
Next $20,000 ($60,001 to $80,000) $48,480 (250% of $19,392)
ARF $134,480

Taxis and Goods-cum-passenger vehicles share the same ARF structure as cars.

ARF For Motorcycles & Scooters

ARF for motorcycles and scooters are as follows.

Vehicle Open Market Value (OMV) ARF Rate (% of OMV to pay)
First $5,000 15%
Next $5,000 ($5,001 to $10,000) 50%
Above $10,000 ($10,001 and above) 100%

ARF For Buses & Commercial Vehicles

For most buses and commercial vehicles, the ARF is 5% of OMV.

Read Also: Cost Guide To Buying A Commercial Vehicle In Singapore

How The Vehicular Emission Scheme (VES) Can Affect ARF

The Vehicular Emission Scheme (VES) can affect the final ARF that is payable on a car. The VES is introduced to encourage people to buy a car (or taxi) that emits less pollutants. Depending on the band that your vehicle is categorised within, you may enjoy an ARF rebate or pay a surcharge.

For cars that are registered from 1 January 2021 to 31 December 2023, VES rebate or surcharge are as such.

A car that qualifies for Band A1 and A2 can enjoy a rebate of $25,000 and $15,000 respectively. At times, the rebate might even be greater than the initial ARF payable.

For example, in the case of the Kia Cerato 1.6 EX (A) that has an OMV of $12,819 and thus an ARF of $12,819, the car qualifies under Band A2 which entitles it to a $15,000 rebate. Since the rebate is greater than the initial ARF payable, it reduces the ARF to $0 after accounting for the VES rebates.

If there is a VES surcharge, the ARF increases.

How ARF Affects Your PARF Rebate

The Preferential Additional Registration Fee (PARF) rebate provides an incentive for vehicle owner who deregister their car after 10 years.

PARF rebate will depend on the ARF paid and when the car is deregistered. For a car that is deregistered at its 10-year mark, 50% of the ARF paid will be the PARF Rebate. Do note that for cars that are registered on or after 15 February 2023, the PARF rebate will be capped at $60,000.

An important point to note is that if you enjoy a VES rebate, the PARF rebate that you get will be based on the net ARF that you paid after taking into account the emission rebates.

However, if you pay an emission surcharge, your PARF rebate will be calculated based on the ARF paid which does not include this surcharge.

Read Also: Guide To Understanding Vehicle Emissions Scheme (VES) In Singapore

Top photo by Moo Kar Ming, DollarsAndSense

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