Paying for a client lunch, taking a taxi to a meeting or running the air-conditioner while working from home can leave employees out of pocket. Some of these expenses may reduce our taxable employment income, but using something for work does not automatically make it tax deductible.
On 21 October 2026, IRAS warned against false, incorrect or unsupported employment expense claims. It had identified over 3,000 taxpayers with claims similar to those suggested in circulating messages and was reviewing claims requiring further verification.
For employees, the question is which expenses qualify, and whether we have the records to support them.
Work Expenses Must Meet All Three Conditions
Under IRAS’s employment expense rules, a deductible expense must be incurred for official duties, must not be reimbursed by the employer, and neither private nor capital in nature. Capital expenses include purchases of equipment such as computers. Even if a laptop helps us do our job, buying it does not qualify as an employment expense deduction.
Which Common Work Expenses Can Employees Claim?
The table below summarises some common examples. Claimable expenses must still meet the conditions above and be supported by records.
| Expense | What may qualify | What does not qualify |
|---|---|---|
| Client meals | Clients’ meals during business meetings, excluding your share | Your own meals, meals with colleagues, and entertainment for social purposes, potential clients or goodwill |
| Travel | Bus, MRT or taxi trips between your office and a client’s office | Commuting between home and your workplace |
| Private car | – | Costs of an “S” plate car, even when used for work |
| Phone and internet | Work subscriptions, such as a separate work account | Private bills and purchases of phones or computers |
| Professional subscriptions | Subscriptions to professional bodies or societies related to employment | Unrelated hobby club subscriptions |
Source: IRAS employment expense guidance and tax explainer.
A useful example is lunch with a client. We should separate the client’s meal from our own share, rather than claim the whole bill. Similarly, taking a taxi to a client meeting and taking one home after work have different tax treatment.
Again, this situation only applies if you have not been reimbursed by your employer. If you have already been reimbursed by your employer, you can’t make any claim for employment expenses against your income tax.
Employees Required To Work From Home May Claim Certain Expenses
If our employer requires us to work from home, electricity and telecommunication costs incurred for work may qualify.
IRAS accepts a comparison of bills before and after WFH as a way of calculating additional running costs. Keep the bills and calculations supporting the claim, and account for the relevant WFH period.
For a simplified example, assume an employee is required to work from home for one month. Their electricity charge rises from $170 in the base month to $210 in the next month. This means the additional $40 may qualify as claimable work expenses.
Where several household members work from home, IRAS accepts equal apportionment of shared qualifying expenses.
Existing Home WiFi Does Not Automatically Qualify
IRAS allows the monthly WiFi subscription only where it was set up to enable WFH. An existing subscription set up before WFH does not qualify. Installation and connection fees are also excluded.
Buying a desk, office chair or computer does not become deductible simply because we need a home workspace. Personal household spending, such as water and gas used for cooking, is also excluded.
See IRAS’s WFH guidance for the calculation methods and conditions.
A $500 Deduction Does Not Mean $500 Less Tax
An employment expense deduction reduces the income subject to tax. It does not return the full amount we spent.
For a hypothetical employee whose entire $500 deduction falls within an income band taxed at 7%, the tax saving would be $35: $500 multiplied by 7%. This assumes no other adjustments or rebates change the outcome. The employee still bears the remaining $465.
Read Also: Complete Guide To Personal Income Tax Rates And Income Brackets In Singapore
Keep Supporting Records When Making A Claim
Claims are entered under “Employment Income and Expenses” in the income tax return, by selecting “Add New” and then “Employment Expenses”.
Keep receipts, invoices and supporting calculations for five years. For example, records for expenses incurred in 2025 and claimed for Year of Assessment 2026 must be retained until 31 December 2030. Documents need to be submitted when IRAS requests them. Estimates and improper records are not allowed.
Read Also: From Tax Filing To BTO Launches: Singapore’s Personal Finance Calendar For 2026
What If You Have Already Made An Incorrect Claim?
IRAS advises taxpayers to correct or withdraw incorrect claims promptly through the “Amend Tax Bill” service on myTax Portal. Those withdrawing all employment expense claims can use its dedicated withdrawal form. If an adjustment cannot be made through the service, contact IRAS for assistance.
False, incorrect or unsupported claims may lead to additional tax and penalties of up to three times the tax undercharged. Individuals charged in court may also face a fine of up to $10,000, imprisonment of up to three years, or both.
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