In the IRAS’ e-Tax Guide on GST: Fringe Benefits (4th Editions) published on 29 Jan 2020, the IRAS announced the amendment to the Singapore GST treatment on certain fringe benefits.
1. With effect from 1 Feb 2020, a GST-registered person is allowed to claim input tax incurred on temporary accommodation (e.g. hotel room, serviced apartment) provided to its foreign employees on the first 31 days, if the provision of such accommodation exceeds 341 days per occasion.
2. The Comptroller will allow the input tax claim incurred on ALL transport expenses except for the following:
- Transport expenses such as the hiring of taxis to transport employees from their homes to work and vice versa during ordinary work hours. Employees have a personal responsibility to ensure that they arrive at work on time and can choose the most suitable mode of transport to and from their workplace and home; and
- Motor car expenses that are blocked under regulation 27. For example
3. The Comptroller will allow the input tax claimed on the following:
- F&B provided in any staff cafeteria/canteen or at the employer’s premises (e.g. company’s pantry and food catered in for employees);
- F&B provided to employees when they work beyond the
official working hours (“overtime meals”), including meals taken
outside the employer’s premises; and
- F&B expenses incurred by employees at the airport when they leave Singapore for business trips and upon their return.
Please click here to access to the above e-Tax Guide published by IRAS on 29 Jan 2020: