Does your employer give you lump-sum allowances, such as uniform allowance, transport allowance, meal allowance, winter-clothing allowance, luggage allowance, optical allowance, entertainment allowance? Do you know that the above are taxable in the hands of the employees as their personal income tax? Exception is per diem allowance for overseas trips( not taxable), which must be subsistence in nature, and the rate of which cannot be excessive and  must be within the rate acceptable by IRAS. On the other hand, reimbursement (employee claim on actual incurred basis) is not taxable in the hands of employees. But then if your tax bracket is not that high, you wouldn't mind having the extra allowance $ in your pocket and pay a bit of tax, isn't it. Quiz: 1. Prize won in lucky draw at company's event, is it taxable? ......