Automatic Filing of Tax Returns for Drivers of Private Hire Vehicles

Parliamentary Question by Ms Sun Xueling:

To ask the Minister for Finance (a) whether there is a timeline to putting in place the arrangement with ride-hailing firms on the automatic filing of tax returns of their drivers; and (b) what will be the process to consider tax deductibles so as to ensure fairness of treatment for the drivers.

Parliamentary Reply by Minister for Finance Mr Heng Swee Keat:

1.    IRAS is in discussion with Uber and Grab to provide drivers’ data to IRAS. The data can then be automatically pre-filled in the drivers’ income tax returns to ease their tax filing compliance. IRAS hopes to finalise the arrangement as soon as possible with Uber and Grab.

2.    Deduction of expenses incurred for a car is not allowed for tax, unless the taxpayer is carrying on the business of hiring out cars or providing driving instruction. This treatment is in line with our national policy to curb the car population, and is applied consistently to both corporate and individual taxpayers. 

3.    Ride-hailing drivers are therefore not allowed tax deduction on expenses incurred in relation to the car, including the purchase cost of the car. These drivers can however claim deduction for other expenses. Such allowable deductible expenses include commission paid to third-party operators, administrative charges imposed by third-party operators, and the proportion of expenses for mobile phones used in the course of providing their services.