When a Singapore-registered car is deregistered, its owner may receive a Preferential Additional Registration Fee rebate and a COE rebate. PARF depends mainly on age and net ARF paid. The COE rebate represents an unused portion of the entitlement.
Who can receive PARF
For a private, company, off-peak or private-hire car, the vehicle generally must have been new when first registered, or an eligible imported used car no more than three years old registered on or after 1 September 2007. It must be no more than ten years old at deregistration and must never have been laid up.
PARF is calculated from actual ARF paid, not simply from Open Market Value. An emissions or other qualifying incentive that reduced ARF can therefore reduce the base used in the calculation.
The schedule changed in February 2026
For cars registered with COEs obtained from the second February 2026 bidding exercise onward, the schedule is:
| Age at deregistration | PARF rebate |
|---|---|
| Not more than 5 years | 30% of ARF paid |
| More than 5, up to 6 years | 25% |
| More than 6, up to 7 years | 20% |
| More than 7, up to 8 years | 15% |
| More than 8, up to 9 years | 10% |
| More than 9, up to 10 years | 5% |
| More than 10 years | Nil |
The cap for that cohort is S$30,000. For relevant COE-exempt vehicles, the revised rules apply to registration from 13 February 2026.
Cars in the second February 2023 through first February 2026 COE cohort remain on the preceding 75%-to-50% schedule, with its S$60,000 cap. Earlier eligible cars follow their applicable older schedule.
How the COE rebate works
For a standard ten-year COE, the simplified formula is QP or applicable PQP paid × unused COE period ÷ 120 months. LTA uses full calendar months and converts remaining days on a 30-day-month basis, so exact dates matter.
For Category E, the calculation uses the lower of the Category E QP paid and the corresponding category’s QP in the same exercise. If a vehicle is exported within two years of registration, its COE rebate is capped at 80% of the relevant QP paid.
Illustrative calculation
Assume an eligible post-February 2026-cohort car has net ARF of S$120,000, is deregistered before age five, had a S$96,000 ten-year COE, and has exactly 60 months remaining.
- PARF: 30% × S$120,000 = S$36,000, reduced to the S$30,000 cap.
- COE rebate: S$96,000 × 60 ÷ 120 = S$48,000.
- Total illustrative statutory rebates: S$78,000.
This excludes any separate body, scrap or export value and disposal costs. LTA uses the vehicle’s actual record and exact dates.
Receiving and using the rebates
Deregistration alone is not enough. The vehicle must be properly scrapped through an LTA-appointed facility, placed in an appointed Export Processing Zone pending export, or exported with acceptable disposal documents. Outstanding LTA matters and financing must be cleared.
The rebates remain valid for 12 months from deregistration and, subject to current LTA requirements, can be encashed, used against specified vehicle taxes and fees, or transferred. The two rebates remain separate and may carry administrative fees when divided or transferred.
Common mistakes
- Calculating PARF from OMV instead of the actual net ARF paid.
- Using the newest schedule without checking the registration cohort.
- Treating rebates as a guaranteed resale price.
- Assuming dealer references to scrap value mean PARF alone.
- Using today’s COE result instead of the car’s actual QP or renewed-COE PQP.
Related guides
Primary sources
- LTA OneMotoring — PARF and COE rebates
- LTA — Revision to the PARF rebate schedule and cap, 12 February 2026
- LTA OneMotoring — Vehicle-specific PARF/COE rebate enquiry
Last fact-checked: 3 September 2026. Rules, fees and official pages can change; check the linked source before acting.