On or about 29 January 2020, the Inland Revenue Authority of Singapore (IRAS) has published the fourth edition of the e-Tax guide, GST: Fringe Benefits. It replaces the third edition published on 27 July 2018.
This e-Tax guide explains the GST treatment for goods and services provided by a GST-registered person to his employees as fringe benefits. Specifically, it explains when a GST-registered person is allowed to claim the GST incurred on fringe benefits and whether he is required to account for GST when these benefits are given free to his employees.
In this fourth edition, the following revisions were made:
- Revised/Inserted:
- Para 7.7 –– to revise the administrative concession to allow input tax on the first 31 days, if the provision of temporary accommodation exceeds 31 days per occasion. New Example 3 inserted to illustrate the application of the concession in para 7.7
- Footnote 13 –– to clarify on the definition of “foreign employees”
- New administrative concession to allow all transport expenses, except transport from home to work and vice versa during ordinary work hours and motor car expenses that are blocked under reg 27. Amendments made to Example 4 to illustrate the new administrative concession
- New Example 7 on food and beverages subsidised by the employer on its premises, and
- Answer to Q1 of Frequently Asked Questions –– to elaborate on costs recovered from an employee in respect of his/her family and a new concession to allow input tax if the amount to be recovered from an employee is not determinable upfront.
- Revised Annex C for editorial amendments as well as:
- To amend the administrative concession for temporary accommodation to allow input tax on the first 31 days
- To include the new administrative concession for transport expenses, and
- To clarify the GST treatment for mobile phone expenses.
- Inserted Annex D for information on the GST treatment of transport expenses prior to 1 February 2020.
Source: IRAS website, 29 January 2020