Singapore Excludes Medical Reimbursements From Skills Levy

Employer reimbursements of employees’ and their dependents’ medical treatment are excluded from taxable wages for Singapore’s Skills Development Levy under a regulation that takes effect June 15.

The Skills Development Levy (Wages — Excluded Payments) Notification 2023 excludes from taxable wages reimbursements for medical, dental, and traditional Chinese treatments, regardless of where performed, for payments due starting June 15.

The exclusion applies to employees and dependents of an employee at the time a payment is due. Dependents are defined as spouses and children, including stepchildren and adopted children.

The Skills Development Levy (Amendment) Act 2023 also takes effect June 15 ...