Establish a close business connection
A benefit must have a close connection with business activity and satisfy ordinary input-tax rules; better morale alone is insufficient. Relevant training, operational efficiency and corporate identity are among the indicators. Employee-name expenses can qualify under agency or reimbursement concessions when conditions are met. From July 2025 a specified concession extends to qualifying employee purchases from OVR suppliers with evidence of the GST and payment.
Review recovery and free provision separately
Flat allowances do not become recoverable purchases merely because a receipt is produced. Partial reimbursements limit the claim, and prohibited expenses remain disallowed. Where input tax was allowed, giving business goods away or permitting private use can trigger output tax even without payment. Free services to employees do not require output tax under the stated rule. Consult the benefit-specific table and historical transport annex where relevant.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
Read the official PDF ↗