OMV, ARF and PARF Rebate Explained
OMV is a car's imported value, assessed by Singapore Customs. The ARF is a tax charged as a rising share of OMV, from 100% on the first S$20,000 to 320% above S$80,000. Deregister within 10 years for a PARF rebate of part of the ARF; for new cars with COEs from the second Feb 2026 exercise it is capped at S$30,000.
A Singapore car price is built from several taxes, and three terms cause the most confusion: OMV, ARF and the PARF rebate. Understanding them explains both why cars cost so much and what you get back at the end.
OMV — the starting point
The Open Market Value (OMV) is the cost of the car imported into Singapore — the purchase price, freight, insurance and other delivery charges — as assessed by Singapore Customs. Every tax below is calculated from the OMV, not the showroom price.
ARF — the big tax on OMV
The Additional Registration Fee (ARF) is a tax you pay to register the car, charged as a rising percentage of OMV. For cars with COEs obtained from the second February 2023 exercise onwards (registered on or after 15 February 2023):
ARF rate on each band of OMV (cars registered on/after 15 Feb 2023). Source: LTA.
| Portion of OMV | ARF rate |
|---|---|
| First S$20,000 | 100% |
| Next S$20,000 (S$20,001–40,000) | 140% |
| Next S$20,000 (S$40,001–60,000) | 190% |
| Next S$20,000 (S$60,001–80,000) | 250% |
| Above S$80,000 | 320% |
Because the top band is 320%, expensive cars attract a very large ARF.
The rest of the showroom price
On top of OMV and ARF, a new car’s price includes:
- Excise duty: 20% of OMV
- GST: 9% (on OMV plus excise duty)
- Registration Fee (RF): S$350
- COE: the quota premium for its category
- The dealer’s margin
See the true cost of owning a car for a full worked build-up.
PARF rebate — what you get back
The Preferential Additional Registration Fee (PARF) rebate refunds part of the ARF you paid if you deregister the car within 10 years. After 10 years it is nil — which is why renewing a COE means giving up the rebate (see COE renewal and PQP explained).
PARF rebate by age at deregistration for the newest regime. Source: LTA.
The rates were reduced for newer cars. For cars with COEs from the second February 2026 exercise onwards, the rebate is capped at S$30,000:
| Age at deregistration | PARF rebate |
|---|---|
| Not more than 5 years | 30% of ARF (max S$30,000) |
| 5–6 years | 25% |
| 6–7 years | 20% |
| 7–8 years | 15% |
| 8–9 years | 10% |
| 9–10 years | 5% |
| More than 10 years | Nil |
Cars registered between 15 February 2023 and 12 February 2026 use the older, more generous scale (75% down to 50%, capped at S$60,000). Always check which regime your car falls under, because it changes the paper value significantly.
Related
General information on vehicle taxes, not financial advice. Rates and caps change; confirm current figures on the LTA OneMotoring website.
Sources
- Vehicle Tax Structure (ARF tiers, excise, PARF) — Land Transport Authority (OneMotoring) (as of October 2026)
- Additional Registration Fee (ARF) — Land Transport Authority (OneMotoring) (as of October 2026)