Great news! We had previously shared with you at Grab-a-Drink sessions and the recent Driver Town Hall that we have been working closely with various parties regarding the income tax deduction issue that Private Hire Drivers face. Now, we have some wonderful news to share with you – after months of discussions and sharing of our drivers’ typical expense costs, we have a breakthrough! The Ministry of Finance has announced that PHV drivers may be able to deduct car-related expenses in next year’s income tax filing.
The press release can be found here.
They have proposed 2 possible ways to claim the deductions:
1) claim 40% of all driving income minus service fees (service fees are already eligible for deduction today)
2) claim based on actual amount of running expense and service fees incurred in earning driving income
We have shared with IRAS that most drivers’ expenses exceed 40%, and claiming actual amounts will require a lot of work for you – and that takes you away from the road to earn an income.
The Ministry will be seeking feedback on the proposed amendments to the Income Tax Act. You can provide feedback via the MOF public consultation webpage, or using this template:
We will continue to liaise with all parties (MOF, IRAS, MOT, LTA, NPVHA and members of Parliament) to get you a fair tax deductions policy. In the meantime, please continue to share your concerns and feedback with us.
Thanks for your continued support of Grab, and I look forward to seeing you on the road.