The IRAS has updated their website on their content on the rules for gifts.

Please note in the example provided by the IRAS, if the total cost of the gifts provided to one company exceeds $200 in a quarter (regardless of whether the gifts are given on two separate occasions in a quarter or if the gifts are given to two different department of the same company), you would need to account for deemed output tax.

While the old rules on the series of gifts are removed, it appears that you do have to track the gifts provided or take a prudent position of excluding all input tax on gifts purchased.

It’s timely to inform your business about this rule with Christmas around the corner.

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