Employee fringe benefits

Key requirements

Services supplied free to employees are generally not subject to GST, but goods can require deemed output tax where input tax was allowed, including suspended-GST imports. Free catered food and beverages, gifts costing no more than S$200 before GST, and goods with no allowable input tax have stated exceptions. Taxable free goods are valued at open market value; discounted sales use the actual subsidised price. Temporary private use of business goods can also trigger output tax unless an exception applies, including a close nexus to business duties. A delivery vehicle taken home incidentally to the employee’s duties is different from weekend private errands. Review the detailed accommodation, parking and meal examples and distinguish output-tax exceptions from input-tax restrictions on family benefits.