PARF rebate: what you get back on the ARF
The share of the ARF a car returns when it is deregistered before ten years. Rules read on LTA’s pages on 24 October 2026.
PARF rebate
$2,000
5% of the ARF paid, cap $30,000
| Up to 5 years | $12,000 |
| Over 5 to 6 years | $10,000 |
| Over 6 to 7 years | $8,000 |
| Over 7 to 8 years | $6,000 |
| Over 8 to 9 years | $4,000 |
| Over 9 to 10 years | $2,000 |
Nothing after 10 years, nor for a car laid up before or a used import registered at more than 3 years old.
Prepared by Radif Partners · Method · COE results read on 24 October 2026 (latest: 2nd exercise of October 2026)
The PARF rebate is a share of the ARF you actually paid, after any VES rebate or EEAI, returned when a car is deregistered before it turns ten. Three schedules exist, set by the exercise in which the COE was obtained. Before the second exercise of February 2023: 75% up to five years, falling five points a year to 50% in the tenth year, no cap. From then to the first exercise of February 2026: the same shares with a cap of $60,000. From the second exercise of February 2026: 30% down to 5%, capped at $30,000. A car with $40,000 of ARF scrapped at 6.5 years returns $26,000, $26,000 or $8,000 under the three schedules. Nothing is paid after ten years, or for a car that has been laid up.
The three schedules side by side
| Age at deregistration | COE before Feb 2023 | Feb 2023 to Feb 2026 (cap $60,000) | From Feb 2026 (cap $30,000) |
|---|---|---|---|
| Up to 5 years | 75% | 75% | 30% |
| Over 5 to 6 years | 70% | 70% | 25% |
| Over 6 to 7 years | 65% | 65% | 20% |
| Over 7 to 8 years | 60% | 60% | 15% |
| Over 8 to 9 years | 55% | 55% | 10% |
| Over 9 to 10 years | 50% | 50% | 5% |
The schedule is fixed for the life of the car. It depends on the exercise in which the COE used to register the car was won, not on the date you scrap it. A car registered in 2025 keeps the old shares with the $60,000 cap even if it is scrapped in 2030; a car whose COE came from the second exercise of February 2026 or later is on the new schedule from day one.
How age is counted
Age runs from the original registration date. A car deregistered on the day it turns five is still “not more than five years” old and gets the top share; one day later it drops to the next band. That makes the timing of a sale or scrapping worth checking against the anniversary of registration, especially under the older schedules, where a band is worth five percent of the ARF. The calculator takes age in years with one decimal; for a date close to an anniversary, check the exact registration date on OneMotoring.
And the COE rebate on top
COE rebate at deregistration
$27,000
| Value of one month of COE | $750 |
| Share of the COE left | 30% |
| Cap if exported within 2 years (80%) | $72,000 |
What the 2026 schedule changes
Under the older schedules, scrapping early paid well. For a car with $34,000 of ARF, deregistering at five years instead of in the tenth year was worth $8,500 more in PARF. Under the schedule for COEs from February 2026 the same choice is worth only $8,500. Early scrapping becomes much less attractive, the floor under used car prices drops, and the decision at ten years leans towards renewing, since little PARF is left to give up. Buyers comparing a new car with one registered before the change should count the larger PARF the older car still carries.
Who gets a PARF rebate
Private cars, off peak cars, company cars and private hire cars qualify if they were new when registered in Singapore, or imported used cars no more than three years old registered on or after 1 September 2007. The car must be deregistered before it is ten years old and must never have been laid up. Taxis qualify within their statutory lifespan. Goods cum passenger vehicles, classic and vintage cars and laid up vehicles do not.
The rebate is computed on the net ARF actually paid, leaving out any VES surcharge. For the Category A car on the home page, with $34,000 of ARF, the new schedule returns $10,200 at five years. For the larger car on the Category B page, whose ARF before its band C1 surcharge is $86,000, the share at five years would be $25,800, so the $30,000 cap does not bite.
Using the rebate
PARF and COE rebates are granted once the deregistered car has been properly disposed of: scrapped at an LTA appointed scrapyard, stored in an export processing zone pending export, or exported with approved documents. Outstanding payments to LTA and any car loan must be cleared first. You then have 12 months to encash the rebate online with Singpass, to offset the taxes and COE of a new car, or to transfer it to someone else. Encashed rebates go to your GIRO refund account or by PayNow. The scrapping guide walks through the steps, and LTA’s rebate page has the forms.