Singapore Budget 2020 – Others

NAVIGATION

EV Early Adoption Incentive For Fully Electric Cars
Road Tax For Electric Cars
Road Tax For Petrol-Electric Cars
Road Tax For Electric Motorcycles
Road Tax For Electric Light Goods Vehicles (LGVS) And Electric Goods Passenger Vehicles (GPVS) With Maximum Laden Weight Of ≤3.5 Metric Tonnes

1. EV EARLY ADOPTION INCENTIVE FOR FULLY ELECTRIC CARS

To encourage motorists to switch to electric cars, buyers of fully electric cars and taxis will receive a rebate of up to 45% on the Additional Registration Fee, capped at S$20,000/-. This incentive will be implemented for three years, from January 2021.

2. ROAD TAX FOR ELECTRIC CARS

To ease business with cash flow, the Finance Minister will grant a CIT rebate of 25% of tax payable, capped at S$15,000/- to all companies, for Year of Assessment (YA) 2020.

Power Rating (kW)	6-Monthly Road Tax Formula (excl. EV lump sum component)
PR ≤ 7.5	S$200/- x 0.782
7.5	[S$200/- + S$2(PR – 7.5)] x 0.782
30< PR ≤ 90	[S$250/- + S$3.75(PR – 30)] x 0.782
90< PR ≤ 230	[S$475/- + S$7.50(PR – 90)] x 0.782
PR > 230	[S$1,525/- + S$10(PR – 230)] x 0.782

Licensing period	6-monthly EV lump sum component
1 Jan 2021 – 31 Dec 2021	S$100/-
1 Jan 2022 – 31 Dec 2022	S$200/-
1 Jan 2023 onwards	S$350/-

3. ROAD TAX FOR PETROL-ELECTRIC CARS

Effective from 1 January 2021, road tax for all Petrol-Electric Cars will pay higher of the Engine Capacity or revised Power Rating as shown below:

Engine Capacity (cc)	6-Monthly Road Tax Formula (ECC)
ECC ≤ 600	S$200/- x 0.782
ECC ≤ 1000	[S$200/- + 0.125 (ECC -600)] x 0.782
1,000 < ECC ≤ 1,600	[S$250/- + S$0.375 (ECC – 1,000)] x 0.782
1,600 < ECC ≤ 3,000	[S$475/- + S$0.75 (ECC – 1,600)] x 0.782
ECC > 3,000	[S$1,525/- + S$1/- (ECC – 3,000)] x 0.782

Power Rating (kW)	6-Monthly Road Tax Formula (PR)
PR ≤ 7.5	S$200/- x 0.782
7.5 < PR ≤ 30	[S$200/- + S$2/- (PR – 7.5)] x 0.782
30 < PR ≤ 90	[S$250/- + S$3.75 (PR – 30)] x 0.782
90 < PR ≤ 230	[S$475/- + S$7.50 (PR – 90)] x 0.782
PR > 230	[S$1,525/- + S$10/- (PR – 230)] x 0.782

4. ROAD TAX FOR ELECTRIC MOTORCYCLES

Effective from 1 April 2020, road tax for Electric Motorcycles will be as shown below:-

Power Rating (kW)	6-Monthly Road Tax Formula
PR ≤ 10	S$40/- x 0.782
10< PR ≤ 96*	[S$40/- + S$1.40 (PR – 10)] x 0.782
PR > 96*	[S$160/- + S$2.40 (PR – 96)] x 0.782

*Electric Motorcycles with PR>10kW are currently not allowed for use on roads in Singapore.

In addition, for Electric Motorcycles registered from 1 January 2021 onwards, road tax will include an additional EV lump-sum component as shown below:-

Licensing period	6-monthly EV lump sum component
1 Jan 2021 – 31 Dec 2021	S$25/-
1 Jan 2022 – 31 Dec 2022	S$50/-
1 Jan 2023 onwards	S$100/-

5. ROAD TAX FOR ELECTRIC LIGHT GOODS VEHICLES (LGVS) AND ELECTRIC GOODS PASSENGER VEHICLES (GPVS) WITH MAXIMUM LADEN WEIGHT OF ≤
3.5 METRIC TONNES

With effect from 1 January 2021, road tax for all registered Electric LGVs and Electric GPVs will be as shown follows:-

For licensing period of 1 January 2021 – 31 Dec 2021

Vehicle Type	Maximum Laden Weight (metric tonne)	6-Monthly Road Tax Formula
Vehicle Type	Maximum Laden Weight (metric tonne)	Diesel & Diesel Hybrid	Petrol & Petrol Hybrid	Electric
LGVs	mlw ≤ 3.5	S$213/-	S$170/-	S$195/-

Vehicle Type	Maximum Laden Weight (metric tonne)	6-Monthly Road Tax Formula
		Diesel & Diesel Hybrid	Petrol & Petrol Hybrid	Electric
GPVs	mlw ≤ 3.5	S$372/-	S$298/-	S$323/-
	mlw ≤ 3.5	S$487/-	S$390/-

For licensing period of 1 January 2022 – 31 Dec 2022

Vehicle Type	Maximum Laden Weight (metric tonne)	6-Monthly Road Tax Formula
Vehicle Type	Maximum Laden Weight (metric tonne)	Diesel & Diesel Hybrid	Petrol & Petrol Hybrid	Electric
LGVs	mlw ≤ 3.5	S$213/-	S$170/-	S$220/-

Vehicle Type	Maximum Laden Weight (metric tonne)	6-Monthly Road Tax Formula
		Diesel & Diesel Hybrid	Petrol & Petrol Hybrid	Electric
GPVs	mlw ≤ 3.5	S$372/-	S$298/-	S$348/-
	mlw ≤ 3.5	S$487/-	S$390/-

For licensing period of 1 January 2023 onwards

Vehicle Type	Maximum Laden Weight (metric tonne)	6-Monthly Road Tax Formula
Vehicle Type	Maximum Laden Weight (metric tonne)	Diesel & Diesel Hybrid	Petrol & Petrol Hybrid	Electric
LGVs	mlw ≤ 3.5	S$213/-	S$170/-	S$265/-

Vehicle Type	Maximum Laden Weight (metric tonne)	6-Monthly Road Tax Formula
		Diesel & Diesel Hybrid	Petrol & Petrol Hybrid	Electric
GPVs	mlw ≤ 3.5	S$372/-	S$298/-	S$393/-
	mlw ≤ 3.5	S$487/-	S$390/-

Author Details

Tax Dept

Tax Principal , Paul Wan & Co.

Esther Mok is a Fellow member of The Association of International Accountants, UK and an Approved Accredited Tax Advisor specializing in both Income Tax and GST with Singapore Institute of Accredited Tax Professionals (SIATP). She has behind her more than 20 years of tax experience dealing with international and local clients.

em@pwco.com.sg

peiling@pwco.com.sg