GST and its impact on employee benefits with the latest updates (28-Jan-2016)

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Goods and Services Tax (GST) is a multi stage tax on domestic consumption of goods and services. GST which was implemented on 1st April 2015, will impact your business at all levels including the human resource function. 

Employers provide various benefits in the form of goods and services, both contractually and on ad-hoc basis. Most of the fringe benefits are subject to GST. Therefore, early preparation is important for employers and employees to restructure their existing remuneration package. The Malaysian Customs has updated its guide with regards to GST treatment on employee benefits.

The one day workshop will provide guidance and opportunity to learn, understand, apply and manage the GST issues relevant to an employment situation. Further, the workshop will also explore all the frequently asked questions concerning the GST and its impact on the various employee benefits provided by employer.


Module 1: Introduction to Goods And Services Tax (GST) 
• Overview of GST
• Rationale for GST
• Input tax / output tax
• How GST works?
• Scope of charge to GST

Module 2: What constitute employee benefits for GST purpose?
• Meaning of employee benefits
• Classification / Scope of  employee benefits 
• Benefits p+C6rovided by employer
• Benefits provided by third party on behalf of employer
• Gift rule of RM500
• Role of employment contract

Module 3: Recovery of input tax on employee benefits
• Circumstances input tax is claimable
• Disallowance of input tax
 ‘Blocked’ input tax under GST regulations
 Types of supplies input tax not claimable
• Company car- circumstances input tax can be claimed

Module 4: Accounting for output tax on employee benefits

• Services provided to employees
• Goods given free as per contract of employment
• Goods given free to employees
 Falls under Exempt supply
 Falls under Zero rated supply
 Supply under gift rule
• Car and petrol benefit provided free
• Living accommodation benefit provided free 
• Business goods used for personal purpose / Non business usage

Module 5: Other matters of concern for employers  
• Goods and services purchased from non registered suppliers
• Employee benefits provided to directors / sole proprietors / partners / other connected persons
• Directors fees – category of directors subject to GST
• Gift rule – getting it correct
• How to value employee benefits  - open market approach
• Record keeping / types of documents to be maintained
• Latest developments / updates

Learning objectives

At the end of the workshop, participants will be able to understand:
• The GST Mechanism and how it affects employee benefits
• What constitutes employee benefits for GST purpose?
• Input tax and output tax on employee benefits
• Types of employee benefits subject to GST
• Types of employee benefits exempted from GST
• Circumstances input tax is claimable
•  Record keeping / documentation requirements

Mr Krishnan KSM
He has over 35 years of experience in public practice, commerce and industry, working in various financial and non-financial disciplines in multi-national companies, including extensive overseas exposures. His broad business experience covers corporate and international tax planning, tax review, tax audit and investigation and tax compliance cases. He has worked on specific VAT assignments in UK for several years.

He has successfully developed effective tax planning strategies and structured remuneration packages for several corporate clients and has numerous research materials and case studies to be shared with the seminar participants.

He is a seasoned speaker and has presented papers at numerous national and international conferences and has also conducted numerous workshops in the field of accounting and taxation. Currently, he excels as a key trainer for GST related workshops and seminars.

He is a Chartered Accountant by profession, an Associate member of CIMA–UK and a member of MIA. He is also a member of CTIM and holds a MBA in finance.


HR managers and executives, company directors and managers, accountants, auditors, tax agents, advisors, finance and administrative executives, business entrepreneurs and payroll executives

1 day