ARF, OMV, and COE: How Singapore's Car Taxes Fit Together
A car’s price in Singapore is built from several layers, and the acronyms — OMV, ARF, VES, COE — can be confusing. This guide maps how they fit together so you can read any price breakdown with confidence.
Start With the OMV
Everything begins with the Open Market Value (OMV) — the car’s landed cost (price, freight, insurance) as assessed by Customs. It’s the base figure that several taxes are calculated from. For a deeper look, see our OMV guide.
Layer 1: Import Taxes
On top of OMV come excise duty and GST, charged when the car enters Singapore.
Layer 2: ARF (Additional Registration Fee)
The ARF is the main registration tax, charged as a tiered percentage of OMV — the higher the OMV, the higher the marginal rate. The ARF also determines your future PARF rebate, since that rebate is a percentage of the ARF paid.
Layer 3: VES (Vehicle Emissions Scheme)
The VES adjusts the cost based on the car’s emissions: cleaner cars receive a rebate, more polluting ones a surcharge. This is where electric vehicles often benefit.
Layer 4: The COE
Finally, the COE — the licence to put the car on the road — is added. Unlike the tax layers, the COE isn’t a fixed formula; it’s set by auction and moves every exercise. Track it in the latest results and across each category.
Putting It Together
A simplified view of a car’s price:
| Layer | Roughly |
|---|---|
| OMV | The car’s landed value |
| + Excise duty & GST | Import taxes on OMV |
| + ARF | Tiered % of OMV |
| ± VES | Emissions rebate or surcharge |
| + COE | Auction-set, varies each exercise |
| + Dealer margin | Profit and overheads |
| = Final price | What you pay |
Why the COE Gets the Headlines
The tax layers are formula-driven and relatively predictable. The COE is the wildcard — it’s the part that swings by tens of thousands of dollars and the one worth actively watching before you buy.
Our free app focuses on exactly that piece: live COE prices, trends, and alerts.
This article is for general information only and is not financial advice. For current tax rates and rebate figures, refer to the LTA and Singapore Customs.
Related reading: What Is OMV? · The True Cost of Owning a Car
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