Tax Treatment of Meal Payments and Food Provided (Summary Table)
|Taxable/ Not taxable|
Fixed monthly meal allowance
Working overtime - allowance paid or reimbursement made
Not taxable if conditions are met.
See Meal Allowance / Reimbursement for Working Overtime (below).
Food and drinks (free or subsidised), e.g. food and drinks provided in pantry and during meetings, festive occasions like "lo-hei" during Chinese New Year, Christmas parties and company celebrations.
Not taxable if most staff in the company enjoy the benefit.
Meal allowance/reimbursement provided on overseas trips
This forms part of the per diem allowance/reimbursement.
Meal Allowance/Reimbursement for Working Overtime
Overtime meal allowance and reimbursement paid to employees in 2005 and subsequent years are not taxable provided:
- It is for working beyond official working hours (whether during weekdays, off days, weekends and public holidays) on an ad hoc basis; and
- The payment policy is generally available to all staff. The payments are also not taxable if the policy applies only to staff at the lower level.