COMPANIES should state their staff members’ benefits clearly in their employment contract to avoid being taxed under the Goods and Services Tax (GST) for the benefits, said Telekom Malaysia Berhad GST software consultant Han Kho.
“There are companies that give out benefits discreetly and fail to include such benefits in their employees’ contract. Benefits such as uniforms, smartphones and long service award should be stated clearly in the contract.
“They risked having to pay GST for such benefits if they are not stated in his or her contract and the amount is above RM500 a year,” he said at a GST talk at Cititel Penang.
Han said it was better to itemise the benefits for new employees in view of the GST.
“For existing staff members, if such benefits are not stated in the employment contract, the company should redo the contract or add in additional clauses in view of the GST.”
He also talked on Telekom’s Business 365, a business accounting software, to better manage a company’s accounts and data in preparation for the GST.
The talk was organised by Penang Hoteliers Association (PHA) and the Malaysian Budget Hotel Asso-ciation (MBHA) Penang Chapter with the cooperation of Telekom Malaysia.
Some 80 hotel representatives attended the talk. PHA and MBHA Penang Chapter chairman Datuk Lim Mee Lee said the talk was to help its members understand the GST better.