Responsibilities as an employer
At a glance - Tax treatment of subscriptions
| Nature |
Taxable/ Not taxable |
| 1 |
Club |
If the facilities are used for both business and personal purposes, the portion relating to personal use is taxable.
Entrance fee paid by the employer is taxable where a club membership is granted to an employee as personal membership.
|
| 2 |
Personal membership to gym/ fitness centre/ sports club/ union |
Taxable
|
| 3 |
Handphone/ Internet - full or partial reimbursement |
Not taxable if the handphone or Internet is used wholly for work.
For private usage, the employer can either:
a) Report the amount attributable to private usage in the Form IR8A, or
b) Report the full subscription amount.
(Employee can claim expenses incurred for work purposes when filing his tax return.) |
|
| 4 |
Handphone allowance (fixed monthly payment made) |
Taxable
(Employee can claim expenses incurred for work purposes when filing his tax return.) |
| 5 |
Cable for TV |
Taxable |
|
| 6 |
Professional bodies, e.g. ICPAS and ACCA, paid or reimbursed by employer |
Taxable
(Employee can claim the membership subscription against his income when filing his income tax return.) |