Singapore Expense Policy Template (Free Word)

A Singapore expense policy is shaped less by deduction limits, business entertainment is generally deductible, and more by blocked input tax: the GST rules that stop certain costs from having their tax reclaimed even with a perfect invoice. The policy’s job is to list those blocked categories clearly and to draw the line between private and commercial vehicle costs, so claims are coded correctly. This template gives you that structure ready to adapt.

The download is a sectioned policy: purpose, scope, the general principle, a row per category with the rule and limit, then approval, submission, and non-reimbursable items.

The general principle

The base rule is that a cost must be incurred wholly in producing income, with a valid tax invoice held for purchases over SGD 1,000. Stating this gives every category below a shared standard and lets an approver reject a private cost.

Blocked input tax is the defining feature

The row that sets a Singapore policy apart is blocked input tax. Under GST Regulations 26 and 27, GST on certain expenses cannot be reclaimed at all, even with a valid tax invoice. The blocked categories include private motor car expenses, club subscriptions, medical and accident insurance for employees (with limited exceptions), and benefits provided to family members. The policy should list these explicitly, so a claim in one of those categories is recorded with the gross cost but no GST claim. Treating a blocked category like an ordinary reclaimable cost is the most common GST error a Singapore business makes.

Private versus commercial vehicles

The vehicle rule reinforces the point. Running costs of a private passenger car, an S-plate car, are not deductible regardless of business use, and the GST is blocked. Commercial vehicle costs are deductible. Because Singapore sets no statutory per-kilometre rate, the policy sets its own reimbursement rate for genuine business travel, while making clear that a private car’s running costs are not a deductible business expense.

Entertainment is more generous, but watch the GST

Unlike the UK or Canada, business entertainment in Singapore is generally deductible for income tax where it is incurred in producing income. The catch is the GST side: input tax on club subscriptions and family benefits is blocked. So the policy treats entertainment as deductible but keeps the blocked-GST items separate.

How to use the template

1. Set your accommodation caps and approval thresholds.
2. Confirm the blocked input tax list and your company mileage rate.
3. Make the private-versus-commercial vehicle distinction explicit.
4. Circulate and have staff acknowledge the policy.

Common mistakes

• Reclaiming GST on a blocked category such as a private car or club subscription.
• Expecting private car running costs to be reimbursed as a deductible expense.
• Borrowing an overseas per-kilometre rate when Singapore has none.
• Having no submission deadline, so claims land in the wrong period.

When the policy enforces itself

A written policy works best when its rules apply at capture. Tools that help:

• Spenmo sets card controls matched to the policy for Singapore teams.
• ExpenseFlow reads each receipt, flags the Reg 26/27 blocked-input-tax categories so the GST is not reclaimed in error, codes the cost, and posts it into Xero or QuickBooks Online, so the policy is enforced in the coding.
• Volopay pairs cards with capture to keep spend inside the policy.

A policy is only useful if staff read it, so keep each row to a plain rule and a number rather than dense prose. Publish it where everyone can find it, and review it once a year so the blocked-input-tax list and the GST rate stay current as the rules evolve.

Start from the template, set your limits, and let captured-at-source coding keep claims inside the policy.