Everything You Need to Know About COE and PARF Rebates

When you deregister your car in Singapore, you may be eligible for rebates from the LTA. Two key rebates are COE rebate and PARF rebate.

Buying a car in Singapore is very expensive. But if you deregister your car before your COE expires, you can get some cash back. It is what the COE and PARF rebates are for. In this post, we will explain what these rebates are and how they are calculated. You'll also find out how you can use them. Finally, we’ll also explain what makes PARF and COE cars different. Be a more informed driver after reading this post.

Table of contents:

• What Is COE Rebate
• How Do You Calculate COE Rebate
• What Is PARF Rebate
• How Do You Calculate PARF Rebate
• Where Can You Check Your COE Rebate & PARF Rebate
• How Can You Use Your COE Rebate and PARF Rebate
• What Is the Difference Between PARF and COE Cars
• Conclusion

What Is COE Rebate

It is a refund of your car’s unused portion of the COE. 

Cars of all ages are eligible for this rebate if the deregistration happens before the car’s current COE expires.

How Do You Calculate COE Rebate

COE rebate is given based on the unused portion of the COE remaining when you deregister your car. 

There are two ways to calculate your COE rebate: 

1. Use LTA’s COE and PARF rebate calculator, or 
2. Manually calculate using the formula below. 

The formula to calculate how much COE rebate you can receive is to pro-rate the cost of your COE based on its remaining period (in months) when you deregister it. This formula applies to most cars. 

COE rebate = (COE paid x Total unused period of COE) / 120 months

Here is an example: 

You paid S$50,000 for your COE five years ago. You decide to deregister your car with 5 years (60 months) remaining on the COE. 

You would receive a COE rebate of S$25,000 when deregistering your car based on the unused duration remaining.

The calculation on COE rebate, however, is different for these vehicles: 

• vehicle registered under Category E COE
• vehicles deregistered for export within 2 years of registration
• OPC/ROPC deregistered after 2 years of registration
• OPC/ROPC deregistered for export within 2 years of registration

Please refer to LTA’s OneMotoring for how the COE rebates of these vehicles are calculated. 

What Is PARF Rebate

The acronym PARF means ‘Preferential Additional Registration Fee. 

PARF rebate is available to cars under 10 years old from their initial registration date. The purpose of PARF rebate is to allow you to recover part of the Additional Registration Fee (ARF) that you paid when initially registering your car.

The ARF is a registration tax calculated based on your car's Open Market Value (OMV) at the time of registration. It is one component that adds to the overall cost of registering a new car in Singapore. The PARF rebate allows you to recoup a percentage of this ARF when you deregister the car, depending on how old the car is. 

The newer the car, the higher the PARF rebate you can receive. However, if your car is over 10 years old (i.e., its COE has been renewed before), you won’t be eligible for any PARF rebate. 

How Do You Calculate PARF Rebate 

PARF rebate is calculated based on a percentage of your ARF according to the age of your car when you deregister. 

To find out the age of your car, refer to your vehicle’s registration date locally or overseas, whichever is earlier. 

There are two ways to calculate your PARF rebate: 

1. Use LTA’s COE and PARF rebate calculator, or 
2. Manually calculate using the steps below. 

Step 1: Calculate your vehicle’s ARF

The ARF is a tax you pay when registering a vehicle in Singapore. It is a percentage of the vehicle’s Open Market Value (OMV). 

The OMV is the cost of a vehicle imported into Singapore. It is determined by Singapore Customs, considering the purchase price, freight, insurance, and all other sale and delivery charges for importing the vehicle to Singapore. 

To obtain your vehicle’s OMV, simply login to OneMotoring and retrieve the information using its digital services under ‘Enquire My Vehicle Details.’ 

The tables below show the ARF percentage based on a vehicle’s OMV. LTA implemented a new ARF tax structure in February 2023. Please refer to the relevant table for your vehicle.  

Here is an example: 

You have a BMW with an OMV of S$50,000. Based on the current ARF tax structure, the total ARF payable is S$67,000. 

Step 2: Calculate your vehicle’s PARF rebate

You can calculate your PARF rebate using this simple formula:

PARF Rebate = ARF x PARF Percentage 

Use the table below to get your PARF percentage.

Source: OneMotoring

For example, the same BMW that you paid an ARF of S$67,000 is deregistered when it is nine years old. You will receive a PARF rebate of S$33,500 based on the new rates. 

S$67,000 x 50% = S$33,500

The combined COE rebate and PARF rebate make up your vehicle's total deregistration value.

Your car’s deregistration value = COE rebate + PARF rebate 

Where Can You Check Your COE Rebate & PARF Rebate

You can quickly obtain your vehicle’s COE and PARF rebate values from LTA’s One Motoring. 

• Go to OneMotoring - Enquire PARF/COE Rebate for Registered Vehicle. You don’t need a Singpass for this. 
• Put in your 
  • Vehicle number
  • Last 4 characters of owner’s identification number
  • Intended deregistration date
  • Select if the vehicle will be exported 

You’ll see how much you can get back for the COE and PARF rebates in less than a minute. 

How Can You Use Your COE Rebate and PARF Rebate

Your COE and PARF rebates are valid for 12 months from your vehicle deregistration date. 

During this period, you can: 

• Take them out in cash
• Use them to offset taxes and fees when you register your new vehicle or renew the COE of your existing vehicle
• Transfer the rebates to another person.  

They will expire if you don’t redeem or utilise them within 12 months.

What Is the Difference Between PARF and COE Cars

Since we are on the topic of PARF and COE rebates, it is good to discuss the difference between PARF and COE cars. It is a topic that confuses new drivers.

PARF cars refer to those within their first 10 years of COE and give both PARF and COE rebates if they're taken off the road early. 

COE cars are over 10 years old, have their COE renewed, and give only COE rebates if deregistered early. 

If you're buying a car: 

• PARF cars cost more because they offer both PARF and COE rebates. 
• COE cars cost less because they only offer COE rebates.  

Conclusion

Understanding PARF and COE rebates is crucial when considering selling or scrapping your car. These rebates help you recover some of the money you paid for your car's taxes and COE. Newer cars qualify for both rebates, while older ones might only get COE rebates. It's wise to calculate potential rebates before saying goodbye to your car. Use LTA's rebate calculator for accurate amounts. Knowing this helps estimate how much your car is worth when it's time to let it go.