TNC Business Strategy Research
Singapore 2020 GST-Registered Businesses: COVID-19 GST Guidance
GST-Registered Businesses: COVID-19 GST Guidance
Claiming Input Tax
To support employees who are affected by the COVID-19 pandemic, the company may provide accommodation and other types of benefits to the employees during the COVID-19 period. Whether the GST incurred can be claimed depends on the circumstances:
|Expense||Can input tax be claimed?|
|Accommodation, food, transport to and from accommodation to testing facility and thermometers provided to employees who need to serve a Stay-Home Notice (SHN)||Employee who returns from a business trip overseas |
Yes. The employee incurred the expense to carry out the employment duties assigned by the company. However, input tax is not claimable if the company has been providing the same accommodation to the employee prior to 1 Feb 2020, unless the accommodation is allowed under the exceptions or administrative concession under paragraph 7 of the e-Tax Guide “GST: Fringe Benefits”
Employee who returns from a personal trip overseas
No. The expense is primarily incurred for the personal benefit of the employee.
|COVID-19 tests and COVID-19 hospitalisation charges for employees||No. Medical expenses are not claimable under Regulation 26 of the GST (General) Regulations.|
|Accommodation provided to Malaysian workers in light of the Movement Control Order (MCO)||Yes. Where the Malaysian worker normally resides overseas and is required to reside in Singapore to ensure continuity of business during the MCO period, the expense is incurred for the purpose of the business.|
|Personal protective equipment (e.g. masks, thermometers, hand sanitiser, etc.) to employees||Yes. The expense is incurred for the purpose of the business.|
|Utility bills, telephone bills, monthly subscription fees for mobile phone and monthly subscription fees for broadband incurred while the employee works from home (“WFH”) during the COVID-19 period||Input tax is claimable on the business portion of the expense incurred during the COVID-19 period. The supply should be contracted in the employee’s name, and not any other person living in the same household.|
|Office equipment for home use (e.g. printer, toner, monitor, chair) to facilitate employees to WFH during the COVID-19 period||The company does not own the office equipment|
No, input tax is not claimable. The purchase is primarily incurred for private purposes, as the employee can continue to use the asset at home after the WFH period or sell it off without having to obtain approval from the company.
If the company owns the office equipment
Yes, the company may claim the input tax on the purchase.