Secondment of staff

Key requirements

Secondment generally creates a supply, including salary, CPF and other recovered staff costs. The intra-group concession applies only if no extra fee is charged, the companies are related under section 6 of the Companies Act, the employee works for only one company at any time, that receiving company has total control, and no input tax relating to secondment is claimed. A mark-up defeats the no-extra-fee condition: GST then applies to the full staff costs plus mark-up, not just the profit element. Where staff costs are recovered as part of a wider consultancy or other service, they follow the main supply’s GST treatment. Document the employment and supervision arrangement and the recovery calculation; corporate affiliation alone is insufficient for the concession.