The upfront cost of a vehicle in Singapore is different from the dealership price. The disparity in these figures is due to additional fees and taxes you have to pay when purchasing a vehicle, including vehicle registration fee, exercise duty, Certificate of Entitlement, and, of course, a road tax. The Singapore road tax is paid to the government because you own and drive a vehicle on government roads. This money is majorly used for building and maintaining transport infrastructure and paying salaries for traffic personnel. Like other taxes, road tax payment is recurrent, meaning the law requires that you renew the tax after a certain interval, and it is considered illegal on Singapore roads without a road tax clearance. This article will help you understand the road tax system, answer important questions and expound on various pre-requisites-deadlines, renewals, calculations, and much more.
Understanding Singapore’s Road Tax
The road tax is included in the accompanying registration and exercise duties that add to the total car cost when you purchase a vehicle. However, after every six or twelve months, you are required to renew the road tax after meeting certain renewal prerequisites. Some of the conditions your vehicle must meet before road tax renewal include:
- Your vehicle is insured for the duration of the road tax you are paying. This insurance should also cover third-party liability for bodily injury and death
- It must have the mandatory vehicle inspection if such is due
- You must have cleared any outstanding fine if any was charged on the vehicle. Ensure that any warrants or fines from URA, LTA, TP, and HDB are cleared since pending fine balances can hinder you from paying road tax.
After clearance, you will pay for the renewal and receive a receipt that serves as road tax payment proof. When the road tax duration elapses, you will get a notice reminding you that the tax is due for renewal. The road tax is a recurring cost that you will pay as long as you own the vehicle.
The Road Tax Timeline and How to Respond
- Three months before your road tax expiry date, you will receive an inspection notice, and you set the earliest date you intend to renew your road tax.
- One month before the due date of your road tax, you will receive a reminder a tax reminder.
- Before the road tax expiry date, you are required to fulfil all the three-renewal prerequisites three days before you make payment. Keep in mind that the deadline for fulfilling the renewal prerequisite varies depending on your preferred mode of payment.
- By the road tax expiry date, you must pay the tax as stipulated in the law
- One day after the expiry date, you will now pay additional late renewal fees, and the vehicle cannot operate until it is paid
- You are liable for court prosecution if you fail to pay the road tax for more than six months after the expiry date.
Nowadays, you are not required to display the road tax disc on the car windscreen. However, if you are headed to Malaysia by car, remember to carry a valid copy of the car’s certificate of insurance and a printed copy of your latest road tax certificate or validity.
When you sell or Deregister your Vehicle
If your road tax has expired or is nearing expiry, you will have to renew it before deregistering or selling your vehicle. The road tax will be transferred to the new owner, who will use it until the next renewal. Some people factor in the renewal cost in the vehicle’s selling price so that the buyer compensates for the cost.
How You Can Renew the Road Tax
You can pay your road tax renewal fee through several means, such as online, AXS service, GIRO, SAM service, or at Authorized Road Tax Collection. Before your road tax renewal, you do well to confirm 3 working days in advance that your vehicle meets all the prerequisites set by authorities. The road tax should be paid before the expiry date; otherwise, you face the risk of paying late renewal fines and fees. Additionally, the driver can be prosecuted in court for having an unlicensed vehicle.
Road Tax Refunds for petrol-hybrid and petrol Vehicles from 1/8/2021 to 31/7/2022
The government promised to provide a tax rebate for petrol-hybrid and petrol vehicles for one year covering 1/8/2021 to 31/7/2022 to facilitate transition increased patrol duties. You can find additional information through LTA’s new release. Additional petrol rebate will also be provided for the private hire car, active taxi, and motorcycles of up to 400cc.
Additional petrol duty and road tax rebates will be approved and disbursed automatically, thus no need for the application. For car owners whose road tax had expired before 11/7/2021 and renewed before licensing beyond 1/8/2021, the road tax overpayment will be used to pay off the next payable road tax renewal. A vehicle sold or transferred before the subsequent renewal; the road tax overpayment will offset the transfer fee payable. The remaining amount will move to the new registered owner.
The government provides a way to check the amount of road tax due to your vehicle by submitting the registration number or engine capacity and age through provided digital services.
The Road Tax Surge for a Vehicle over 10 Years
If your vehicle has operated in Singapore for more than 10 years, you are required to pay an additional road tax surcharge from your normal road tax.
Vehicle’s Age | Yearly Road Tax Surcharge |
>10 years old | 10% road tax |
>11 years old | 20% of road tax |
>12 years old | 30% of road tax |
>13 years old | 40% of road tax |
| >14 years old | 50% of road tax |
Road tax Calculation Using Engine Capacity for Diesel and Petrol Cars
Engine Capacity | Road Tax Formula for 12moths |
EC<=600cc | s$400*0.782 |
| 600cc<EC<=1000cc | [s$400 +0.25*(EC-600)] *0.782 |
1000cc<EC<=16000cc | [s$500+0.75*(EC-1000)] *0.782 |
1600cc<EC<=3000cc | [s$950+1.5*(EC-1600)] *0.782 |
| EC>300 | [S$3050+2.0*(EC-3000)] *0.782 |
Road tax on Engine Capacity for Electric cars
Vehicle Power Rating (PR) | Road Tax formula for 6 months |
PR<=7.5 kW | S$200*0.782 |
7.5 kW< PR <=30kW | [s$200+2*(PR-7.5)] *0.782 |
| 30 Kw< PR <= 90 kW | S$250+3.75*(PR-30)] *0.782 |
90 kW < PR <= 230 kW | S$475+7.5*(PR-90)] *0.782 |
| EC > 230 kW | [S$1525+10*(PR-230)]*0.782 |
Where Can You Renew Your Road Tax?
Road tax renewal can be done in five ways, as discussed below
Online Renewal
Online road tax renewal services are available beginning 6 am to midnight, and one should ensure you have met all the prerequisites three days earlier before making an online payment. You could make your payment through a Debit or Credit card or wire the money through a digital banking account with Citibank, OCBC/Plus!, DBS/POSB, UOB (eNETS Debit), or Standard Chartered Bank. Before making the payment ensure your account has enough funds to cover the cost and then proceed.
AXS Services
Paying your road tax renewal using an AXS machine is probably the easiest way because they are available all over Singapore; however, it means you have to leave the house and pay through these machines. You could search an AXS machine near you between 6 am and midnight and follow the instructions displayed on-screen to help renew your road tax. Like the online renewal process, ensure you have sorted all the prerequisites for your vehicle three days in advance before making the renewal payment.
General Interbank Recurring Order (GIRO)
Though using GIRO to renew your road tax does not necessitate moving from your house to the bank, it could be more troublesome than AXS services. You will be required to fill out an application form and submit this form to LTA one and a half months in advance before your current road tax expiry date. This means that you have to keep these dates in mind and be disciplined. Fortunately, those having a GIRO plan often receive a schedule sent via mail one month before road tax expires, and it’s up to you to remember to pay.
Road Tax Collection Centers
Singapore has several road tax collection centers and SingPost located throughout the country to provide citizens with an alternative road tax renewal. Most of these centers open from 8 am to 6 pm, though these hours are not consistent in the whole country. You could also check the opening hours of the center near you before going there. You will need to carry the original prerequisite certificates copies and your road tax renewal notice.
Late Renewal Fees
These are fines or fees paid in addition to the original road tax for late payment. One can avoid these additional expenses by paying the road tax before the due date. Apart from the fine cost charged for late renewal, it is illegal to use or keep a vehicle with expiry road tax; the penalty could entail $ 2,000. These penalties are imposed to prevent a scenario where vehicle owners are skipping the payments. In addition to fines, the driver of a vehicle with expired road tax can be prosecuted in a court of law and be banned from driving.
Road Tax Late Charges
Below is a tabulation of late charges fines that you will pay the LTA depending on the delay period from the expiry date to the renewal date.
Motorcycles
Engine Capacity (EC) | Rewed < 1 month of expiration | to 2.5 months | >2.5 months | >6 months |
EC<300cc | S$10 | S$30 | S$50 | S$130 |
| EC>=300cc | S$10 | S$60 | S$80 | S$230 |
Cars
Engine Capacity (EC) | Renewed < 1 month of expiration | 1 to 2.5 months | >2.5 months | >3 months |
<=1000cc | S$10 | S$60 | S$80 | S$230 |
1000cc<EC<=1600cc | S$20 | S$70 | S$90 | S$240 |
| 1600cc<EC<=2000cc | S$30 | S$80 | S$100 | S$250 |
2000cc<EC<=3000cc | S$40 | S$90 | S$110 | S$260 |
EC>3000cc | S$50 | S$100 | S$120 | S$270 |
Shariot Car-sharing and Rental Services Save the Hustle
Instead of owning a very expensive car in Singapore, Shariot provides you with the convenience and comfort of a personal car but with no hustle of road tax payment. This tax is catered for in the rental or car-sharing cost, meaning that there is no risk of late payment fines and the payment process. Our cars are all licensed and have a valid certificate for easier movement within Singapore. Choose Shariot, your affordable car rental and sharing services in Singapore, for your Daily and Hourly needs.
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