Per Diem and Mileage Rates in Singapore and Malaysia (2026)

In Singapore, a per diem up to IRAS's acceptable rate for the destination isn't taxable, and only the excess goes on Form IR8A (IRAS, 2026). The same lump sum still attracts CPF, because the CPF Board applies its own test (CPF Board, 2024). Singapore has no official mileage rate.

In Malaysia, a meal allowance or per diem is tax-exempt only at a rate fixed in the employer's written instruction. Travelling, petrol and toll allowances for official duties are exempt up to RM6,000 a year (LHDN Public Ruling 5/2019, 2019).

This guide is for the HR and finance staff who set travel allowances in either country. Every rate and rule below carries its source and year, with the full list at the end. It explains the rules and isn't tax advice, so confirm your company's treatment with your tax agent.

Key Takeaways

In Singapore, a per diem at or below IRAS's acceptable rate for the destination doesn't need to be reported. Above it, only the excess goes on Form IR8A (IRAS, 2026).

Tax and CPF are separate tests. A lump-sum per diem within the IRAS rate is tax-free but still attracts CPF, while a reimbursement up to actual spend doesn't (CPF Board, 2024).

Singapore has "no prescribed standard mileage rate" (IRAS, 2026). Mileage reimbursed for specific trips isn't taxable; a fixed monthly car allowance is.

In Malaysia, meal and per diem allowances are exempt only at a rate fixed in the employer's internal circular or written instruction. Travelling, petrol and toll allowances for official duties are exempt up to RM6,000 a year (LHDN Public Ruling 5/2019, 2019).

The Star reported that Malaysia's government car rate rose to RM1.00 per km for the first 500 km from 1 May 2026 (The Star, 2026). It's an interim civil-service rate, useful as a benchmark, separate from the tax rules, and may be revised.

How is a per diem taxed in Singapore?

Within IRAS's rate, a per diem stays off the IR8A; above it, only the excess is taxed.

IRAS publishes an acceptable daily rate for each destination country. The part of a per diem above that rate is taxable (IRAS Per Diem page, updated 11 August 2026). At or below the rate, IRAS's 2026 rate list says the allowance has "No need to be reported" (IRAS, 2026).

Above the rate, you report only the excess on Form IR8A, and the rest of the allowance stays off the form. The excess on trips made in 2026 is taxed in the Year of Assessment 2027 (IRAS, 2026).

IRAS's own worked example uses Germany, where the 2026 rate is S$175 a day. An employer pays S$200 a day for a six-day trip, so S$25 a day sits above the rate (IRAS, 2026).

Four more rules shape the figure you report (IRAS, 2026):

• IRAS accepts the number of days set by your HR policy, capped at the length of the trip.

• Overseas accommodation, airport transfers, inter-city business travel and entertainment fall outside the per diem and aren't taxable.

• A shortfall on one trip can't offset an excess on another.

• Any reasonable exchange-rate source is acceptable, but "the same source must be consistently used".

What are IRAS's 2026 per diem rates?

Four rates in this table fell for 2026, so an allowance copied from last year's list can tip into tax.

The rates are in Singapore dollars per day and set at country level, with no separate city rows (IRAS, 2026). The table shows each 2026 rate with the 2025 rate in brackets, for APAC destinations and the main long-haul markets.

Source: IRAS, 2026 Acceptable Rates for Per Diem Allowances (listing updated 15 December 2025), with 2025 rates in brackets.

IRAS says the rates are "strictly for income tax purpose" (IRAS, 2026). They mark the tax-free limit and don't set what you have to pay.

The Singapore row's S$175 rate is for overseas staff coming into Singapore. A local allowance is taxable (IRAS, 2026).

IRAS's listing of the 2026 rates is dated 15 December 2025, so the 2027 rates are likely around mid-December 2026. Diary a policy review for then.

Does a per diem attract CPF as well as tax?

The tax test asks how much you pay; the CPF test asks how you pay it.

CPF is payable on a per diem given as a lump-sum allowance. It isn't payable on a reimbursement that doesn't exceed the actual spend (CPF Board FAQ, 2024). Whether the amount sits inside the IRAS rate makes no difference to CPF.

Meal and transport allowances count as CPF wages too (CPF Board FAQ, 2024). For cars, cash for an employee's personal car costs attracts CPF, while reimbursement for official purposes doesn't (CPF Board FAQ).

Sources: IRAS Per Diem page (2026) and Transport page (2026); CPF Board FAQs (2024).

The trade-off is admin. A lump sum saves checking receipts and costs CPF. Reimbursement avoids CPF on the trip costs and needs proof of what was spent.

Is there an official mileage rate in Singapore?

IRAS sets no per-km figure, so your policy picks the rate and the shape of the payment decides the tax.

No. IRAS says there is "no prescribed standard mileage rate", and that the rate "depends on the company's policy" (IRAS Transport page, updated 5 March 2026). Some online calculators show a per-km figure labelled as an IRAS rate, but the IRAS transport page sets none.

IRAS does set the tax treatment. "Mileage reimbursements on specific trips are not taxable" (IRAS, 2026). A fixed monthly transport or car allowance is taxable (IRAS, 2026), and CPF follows a similar line, as the table above shows.

So pick a per-km rate, write it into the policy, and pay it against logged business trips. Record the date, purpose and distance of each trip, so the claim reads as a reimbursement for a specific trip.

How are per diems and meal allowances taxed in Malaysia?

Malaysia's exemption rests on a written rate, so the policy document carries as much weight as the amount.

LHDN's Public Ruling 5/2019, dated 19 November 2019, sets the rules. It was in force at our last check on 17 October 2026, with no replacement ruling found.

Meal and per diem allowances are exempt only if given "based on the rate fixed in the internal circular or written instruction" of the employer (PR 5/2019, para 7.2.3). The ruling's example is an outstation meal allowance of RM60 a day for five days. With the rate fixed in writing, the full RM300 is exempt (PR 5/2019, para 7.2.3).

Travel allowances have their own test. A travelling allowance, petrol allowance or toll rate for travel on official duties "is exempted up to an amount of RM6,000 per year" (PR 5/2019, para 7.2.1(a)). Above RM6,000, the employee can claim a further deduction for the amount spent on official duties, and records "should be kept for a period of 7 years" (para 7.2.1(b)).

The employer must also separate what it pays for home-to-work travel from what it pays for travel on official duties (para 7.2.1(c)). And the exemption doesn't apply to an employee who has control over the employer through shares or voting power (paras 7.5.1 and 7.5.2). An owner-director with that control falls outside it.

The ruling leaves the daily amount to your written rate. Malaysian firms often benchmark meal and hotel rates to the civil-service rates. Mapping your staff tiers onto civil-service grades is a judgement call, so record the mapping in the policy.

Accomy's per diem calculator can give you a first draft. For a Malaysia-based company it uses government rates and LHDN's written-policy rule, and for a Singapore-based one it uses IRAS rates. You choose one of about 28 destination cities, a traveller tier of 60%, 80% or 100% of the benchmark, the nights (or a day trip) and a display currency.

It returns a daily allowance and trip total, split into meals and incidentals plus a lodging cap, with a tax note. You can enter a claim amount to check it, and request a per diem policy template in Word. It doesn't calculate mileage.

What mileage rate do Malaysian companies use?

Use the government car rate as a benchmark for your per-km rate; the tax turns on the RM6,000 exemption.

The public reference point is the government's vehicle allowance for civil servants. The Star reported on 1 May 2026, quoting the Treasury Secretary-General, that interim rates took effect that day (The Star, 2026).

Source: The Star, "Vehicle travel allowances revised", 1 May 2026 (reported figures).

The report says the rates are "subject to review when the price of unsubsidised RON95 fuel stabilises". The figures come from a news report rather than the Treasury circular itself, and they may change.

Use them as a starting point for your own per-km rate. For tax, the test is the RM6,000 yearly exemption for travelling, petrol and toll allowances, plus the split between home-to-work and official travel (PR 5/2019, para 7.2.1).

Do SOCSO and EPF apply to travel allowances in Malaysia?

SOCSO excludes travelling allowance by law; for EPF, a fixed monthly payment is the one to check with KWSP.

For SOCSO, wages exclude "Travelling allowance or the value of any travelling concession" (Act 4, s.2(24), as cited in PERKESO's LINDUNG 24 Jam FAQ, 2026). The same FAQ puts the SOCSO wage ceiling at RM6,000 a month. That's a different figure from the RM6,000 yearly tax exemption, despite the matching number.

EPF also leaves travelling allowance out of wages, under the wording of section 2 of the EPF Act. KWSP looks at what a payment really is, though. A fixed monthly petrol or mileage allowance may count as wages, so check it with KWSP before leaving it out of contributions.

Six lines to write into your allowance policy

An allowance holds up when the rate, the days and the payment method are written down before anyone travels.

1. The daily rate for each destination. In Singapore, start from IRAS's rate for the country. In Malaysia, fix the rate in an internal circular or written instruction, because that's what earns the exemption (PR 5/2019, para 7.2.3).

2. How days are counted. IRAS accepts the days your HR policy sets, up to the length of the trip (IRAS, 2026). Say how travel days count.

3. Lump sum or reimbursement, item by item. In Singapore, a lump sum attracts CPF and a reimbursement up to actual spend doesn't (CPF Board, 2024).

4. Mileage, kept apart from car allowances. Pay a per-km rate against logged trips. In Malaysia, separate home-to-work travel from official travel (PR 5/2019, para 7.2.1(c)).

5. One exchange-rate source and a records period. IRAS wants the same source used consistently, and LHDN's ruling says records should be kept for 7 years.

6. Exclusions and a review date. Name controlling shareholders in Malaysia (para 7.5), note that IRAS's Singapore row covers inbound staff only, and review in mid-December, when IRAS's 2027 rates are likely.

For the rest of the policy, how to write a corporate travel policy has a structure you can copy. If your Malaysian staff claim against receipts, the e-invoice rules for travel claims cover what to keep.

Part of our guide to Managed vs Unmanaged Travel: When Do You Need a Program?.

Frequently Asked Questions

What is the per diem rate in Singapore for 2026?

IRAS sets an acceptable daily rate for each destination country, so there's no single national figure. For 2026, examples include S$85 a day for Malaysia, S$110 for Hong Kong, S$155 for Japan, S$165 for the US and S$195 for the UK (IRAS, 2026).

A per diem up to the rate isn't taxable, and only the excess goes on Form IR8A. The rates are "strictly for income tax purpose", so they don't set what you must pay. The Singapore row, S$175, covers overseas staff coming into Singapore.

Is per diem taxable in Singapore?

Only the part above IRAS's acceptable rate for the destination. At or below the rate, IRAS says there's "No need to be reported" (IRAS, 2026). Above it, you report just the excess on Form IR8A, and for 2026 trips it's taxed in the Year of Assessment 2027.

Overseas accommodation, airport transfers, inter-city business travel and entertainment fall outside the per diem and aren't taxable. A local allowance, paid for work in Singapore, is taxable.

Is CPF payable on per diem in Singapore?

Yes, if you pay it as a lump-sum allowance. The CPF Board says CPF is payable on a per diem given as a lump sum. It isn't payable on a reimbursement that doesn't exceed the actual spend (CPF Board FAQ, 2024).

This is separate from tax, so a lump-sum per diem within IRAS's rate is tax-free and still attracts CPF. Meal and transport allowances also count as CPF wages. To keep trip costs out of CPF, reimburse against actual spend instead.

What is the mileage claim rate in Singapore?

There isn't an official one. IRAS says there is "no prescribed standard mileage rate" and that the rate "depends on the company's policy" (IRAS Transport page, 2026), so your company sets its own per-km figure.

IRAS does decide the tax. "Mileage reimbursements on specific trips are not taxable", while a fixed monthly transport or car allowance is. For CPF, cash for personal car costs is payable and reimbursement for official purposes isn't (CPF Board FAQ).

What is the per diem rate in Malaysia?

For tax, LHDN's Public Ruling 5/2019 (in force at our last check) ties the exemption to your own written rate. Meal and per diem allowances are exempt only if given "based on the rate fixed in the internal circular or written instruction" of the employer (para 7.2.3).

The ruling's example is RM60 a day for five days of outstation meals, which makes RM300 exempt. To choose the amount, Malaysian firms often benchmark to civil-service rates. Matching your staff tiers to civil-service grades is a judgement call, so write the mapping down.

What is the mileage claim rate in Malaysia?

The public benchmark is the government rate for civil servants. The Star reported that interim rates took effect on 1 May 2026: RM1.00 per km for the first 500 km by car, up from 90 sen, and 90 sen above that (The Star, 2026). Motorcycles get 65 sen per km for the first 500 km (up from 60 sen) and 55 sen above that.

The rates are "subject to review when the price of unsubsidised RON95 fuel stabilises". Treat them as a benchmark. For tax, the RM6,000 yearly exemption for travelling, petrol and toll allowances applies (PR 5/2019, para 7.2.1(a)).

Are travel allowances subject to EPF and SOCSO in Malaysia?

SOCSO wages exclude "Travelling allowance or the value of any travelling concession" (Act 4, s.2(24), cited in PERKESO's FAQ, 2026). The SOCSO wage ceiling is RM6,000 a month.

The EPF Act's definition of wages in section 2 also leaves out travelling allowance. KWSP looks at what a payment really is, though, so a fixed monthly petrol or mileage allowance may count as wages. Check those with KWSP before leaving them out of contributions.

Can company owners use Malaysia's travel allowance exemption?

Not if they control the company. Public Ruling 5/2019 says the exemption doesn't apply to an employee who has control over the employer (para 7.5.1), and para 7.5.2 describes that control as coming through shares or voting power.

An owner-director with that control falls outside the exemption, so their allowances need separate treatment; confirm it with your tax agent. Other staff remain covered, subject to the written-rate rule for meals and per diems and the RM6,000 yearly limit for travelling allowances.

Sources

Checked 17 October 2026.

• IRAS, Per Diem Allowance (updated 11 August 2026): https://www.iras.gov.sg/taxes/individual-income-tax/employers/understanding-the-tax-treatment/per-diem-allowance

• IRAS, 2026 Acceptable Rates for Per Diem Allowances (listing updated 15 December 2025; pp.1 and 4): https://www.iras.gov.sg/docs/default-source/individual-income-tax/2026-acceptable-rates-for-per-diem-allowances.pdf

• IRAS, Transport (updated 5 March 2026): https://www.iras.gov.sg/taxes/individual-income-tax/employers/understanding-the-tax-treatment/transport

• CPF Board, Are CPF contributions payable on per diem payments? (5 June 2024): https://www.cpf.gov.sg/service/article/are-cpf-contributions-payable-on-per-diem-payments

• CPF Board, Are CPF contributions payable on allowances? (23 September 2024): https://www.cpf.gov.sg/service/article/are-cpf-contributions-payable-on-allowances

• CPF Board, Are CPF contributions payable on cash payments given to my employee for his personal car-related expenses?: https://www.cpf.gov.sg/service/article/are-cpf-contributions-payable-on-cash-payments-given-to-my-employee-for-his-personal-car-related-expenses

• LHDN, Public Ruling No. 5/2019: Perquisites from Employment (19 November 2019; paras 7.2.1, 7.2.3, 7.5.1 and 7.5.2; in force at our last check): https://www.hasil.gov.my/wp-content/uploads/PR_05_2019_2.pdf

• PERKESO, LINDUNG 24 Jam FAQ (25 June 2026; Q26): https://www.perkeso.gov.my/images/lindung/lindung-24-jam/25062026-FAQ_LINDUNG_24_JAM_EN.pdf

• The Star, "Vehicle travel allowances revised" (1 May 2026): https://www.thestar.com.my/news/nation/2026/05/01/vehicle-travel-allowances-revised

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