9.12 GST treatment to Employee Benefit
Employee benefits include any rights, privileges, service or facility provided free of charge (FOC) to employees as stated in a contract of service of employees (employment),
- not subject to GST
- input tax is claimable
If it is not stated in the contract of employment,
- all taxable goods provided free to the employees are subject to GST (subject to 9.11 gift rule of RM500)
- except for those exempted, blocked input tax goods (what is blocked input tax? refer to 9.09 Blocked Input Tax) and zero rated goods
- input tax is claimable
- output tax on gift > RM500.00
- value to be based on open market value
Service supplied free
- no GST
- input tax claimable