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