COVID-19 GST Guidance

 

Claiming Input Tax

To support employees who are affected by the COVID-19 pandemic, you may provide accommodation and other types of benefits to your 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. Your employee incurred the expense to carry out the employment duties assigned by your company. However, input tax is not claimable if your company has been providing the same accommodation to your 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” (PDF, 769KB).

Employee who returns from a personal trip overseas

No. The expense is primarily incurred for the personal benefit of your employee. The expense need not have been incurred had your employee not travelled overseas for personal reasons.
COVID-19 tests and COVID-19 hospitalisation charges for employeesNo. Medical expenses are not claimable under Regulation 26 of the GST (General) Regulations.
SHN expenses and accommodation provided to Malaysian workers on the Periodic Commuting Arrangement (PCA) schemeNo. The expense is primarily incurred for the personal benefit of your employee. For SHN expenses, the expenses need not have been incurred had your employee not returned to Malaysia for personal reasons.
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 your business.
Personal protective equipment (e.g. masks, thermometers, hand sanitiser, etc.) to employees Yes. The expense is incurred for the purpose of your 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 your employee’s name, and not any other person living in the same household. 

Utilities and home telephone bills

If you have difficulties determining the business portion of the expenses, you may take the difference in the amount of expenses your employee incurred before and after working from home and apportion it equally among the working individuals in the same household. For example, if your employee’s utilities bill has increased by $107 (inclusive of $7 GST) and both your employee and another individual in his household work from home, you may claim $3.50 as your input tax.

 

Mobile phone or broadband subscription fees

If the mobile phone subscription or broadband subscription was used for both business and private purposes during the WFH period, you may claim input tax:

(i)     For full reimbursements, based on 4/7 of the GST incurred on the expenses.

(ii)    For partial reimbursements, based on 7/107 of the amount reimbursed or 4/7 of the GST incurred on the expenses, whichever is the lower.
Office equipment for home use (e.g. printer, toner, monitor, chair) to facilitate employees to WFH during the COVID-19 period

Your company does not own the office equipment

No, input tax is not claimable. The purchase is primarily incurred for private purposes, as your employee can continue to use the asset at home after the WFH period or sell it off without having to obtain approval from your company.

 

If the company owns the office equipment

Yes, the company may claim the input tax on the purchase.

Please refer to Covid-19 Support Measures for reliefs provided to property owners.