ARF, PARF and COE Rebates: A Worked Guide
See how gross ARF, actual ARF paid, the original COE cohort and unused entitlement produce different numbers in a deregistration calculation.
ARF is a registration tax. PARF is a possible rebate of part of the actual ARF paid. Unused COE is a separate time-based rebate. Keeping these three concepts separate prevents a large share of ownership-cost mistakes.
First calculate gross ARF
| OMV band | Taxable portion | Marginal rate | ARF |
|---|---|---|---|
| S$0–20,000 | S$20,000 | 100% | S$20,000 |
| S$20,000–40,000 | S$20,000 | 140% | S$28,000 |
| S$40,000–60,000 | S$20,000 | 190% | S$38,000 |
| S$60,000–80,000 | S$10,000 | 250% | S$25,000 |
| Above S$80,000 | S$0 | 320% | S$0 |
| Total | S$70,000 | S$111,000 |
Gross ARF before any applicable emissions adjustment. Actual ARF paid determines the PARF calculation.
For $70,000 OMV, gross ARF is $111,000 under the current bands. For $27,000 OMV it is $29,800, approximately 110.37% of OMV. These are gross calculations; relevant adjustments can change the amount actually paid.
Then identify PARF eligibility
| Original COE cohort | Up to 5 years | At 10 years | Cap |
|---|---|---|---|
| COE before the second February 2023 exercise | 75% | 50% | No monetary cap in this cohort |
| COE from second February 2023 through first February 2026 exercise | 75% | 50% | S$60,000 |
| COE from the second February 2026 exercise onward | 30% | 5% | S$30,000 |
Intermediate age bands appear in the PARF calculator. Renewed COE cars are not PARF eligible; use the actual ARF paid, not the gross ARF before adjustments.
Use the car’s original COE cohort, actual ARF and exact age band. Do not apply the newest schedule merely because deregistration occurs after February 2026. The cap is applied after the percentage calculation and can affect more than just the youngest age band on a high-ARF vehicle.
A newest-cohort example
Assume an eligible car in the newest original-COE cohort, actual ARF paid of $29,800 and deregistration at exactly eight years. At 15%, PARF is $4,470. If an ordinary original COE premium was $110,000 and exactly 24 of 120 months remain, the simplified COE rebate is $22,000. Statutory rebates total $26,470.
If a body-only quote is separately assumed at $2,000, combined proceeds are $28,470 before other settlement costs. That body value is an assumption, not a market rate. A complete dealer offer must not be added to the rebates again.
Renewed entitlement uses its own denominator
A ten-year renewal paid at $110,000 with 48 months unused gives an illustrative $44,000 refund. A five-year renewal paid at $55,000 with 24 months unused gives $22,000. Use the period actually purchased. Exact LTA calculations also account for days; an original Category E registration has an additional rebate-basis rule.
Do larger rebates make early disposal better?
Not automatically. Earlier disposal also gives up useful transport and may require a replacement sooner. Compare the next period’s holding cost, repair needs and alternative package. A larger rebate is not itself a net saving.
Selling a registered car is different from deregistering it. A dealer may resell it with the remaining entitlement. Confirm whether an offer is a whole-car sale, a body-only disposal quote or an agency arrangement, and identify who receives the rebates.
Use our PARF calculator for an estimate, then check the official vehicle enquiry and encashment process before acting.
Sources and review date
Reviewed on 13 September 2026. Historical results retain their exercise dates; worked budgets are assumptions, not quotations.