SINGAPORE: About 16,000 private-hire car drivers will see higher tax bills after ride-hailing giant Grab submitted incomplete income records to the Inland Revenue Authority of Singapore (IRAS) in July.
In response to queries from The Straits Times, IRAS said on Monday (Sept 28) that the majority of them will face an additional tax bill of less than S$100, though the actual amount will vary depending on the driver’s relief entitlements and income tax bracket.
IRAS said that it was informed by Grab at the end of July that about 28,000 drivers who opted into the authority’s pre-filing of income initiative for Year of Assessment 2026 were affected.
This group of drivers had their income understated in tax records, it added.
In a notice to drivers, which can be found on its website, Grab said that a “system error” resulted in some payments, such as incentives, tips and miscellaneous payments, being excluded.
In a media reply on Sept 28, a Grab spokesperson said that it has since worked with IRAS to review the data submission process.
“Grab has also put in place additional safeguards to reduce the risk of similar errors occurring in the future,” the spokesperson added.
Introduced in 2018, the pre-filing of income initiative allows GrabCar drivers to benefit from having their income information automatically filled in their electronic tax forms.
It is also applicable to those who have been actively driving with Grab since the start of the opt-in period, according to Grab’s website. Only GrabCar earnings will be pre-filled.
IRAS said it has since received the corrected records and revisions of affected notices of assessment (NOAs) are under way.
Affected taxpayers do not need to take any action before receiving their revised NOAs, with most expected to receive them by September, IRAS said.
Taxpayers on GIRO instalment plans will have their plans adjusted automatically, it added.
Meanwhile, those who are not on GIRO instalment plans should make payment by the due date stated in their revised NOA.
On its website, Grab urged drivers to verify that the total income figure shown in their NOAs matches the total earnings on their Grab 2025 annual partner statement. It should comprise two components: total earnings and Grab service fee.
In its reply, the Grab spokesperson said that the company sincerely apologises to all impacted drivers for this issue and any inconvenience caused. - The Straits Times/ANN
