Singapore · Administrative guidance
Singapore clarifies GST cost test for business gifts
On 21 October 2026, Singapore's Inland Revenue Authority updated its Gifts and Samples guidance to clarify that packaging, delivery and similar associated costs may be excluded when applying the S$200 business-gift threshold.
- Official document:
- IRAS Gifts and Samples guidance; GST Act 1993, Second Schedule paragraph 5
- Development date:
- 2026-10-21
Statutory gift threshold
The Goods and Services Tax Act 1993 ordinarily treats the transfer or disposal of goods forming part of a business's assets as a supply. Second Schedule paragraph 5(2)(a) excludes a gift made in the course or furtherance of the business where the cost to the donor is not more than S$200. Paragraph 5(2)(b) separately covers an industrial or commercial sample given to an actual or potential customer in a form not ordinarily offered for sale.[2]
Associated costs can be left out
IRAS says the S$200 test is applied per occasion and per recipient, using the gift's cost before GST. The 21 October clarification states that associated expenditure such as packaging and delivery charges may be excluded when determining whether the threshold is exceeded. It clarifies the administrative application of the existing threshold; it does not amend the Act or raise the statutory amount.[1][2]
When output tax is due
Where the gift-cost test is exceeded and input tax was claimed on the purchase or import, the business should account for output tax in the GST period in which the gift is given. IRAS says output tax is not required where the cost is S$200 or less, or where input tax was not claimed. Groups should therefore retain recipient, occasion, gift-cost, associated-cost and input-tax evidence rather than test a bundled logistics invoice against the threshold.[1]
Official sources
- [1] Gifts and Samples
Inland Revenue Authority of Singapore · Document date: 2026-10-21
IRAS Latest Updates entry dated 21 October 2026, lines 977-985, identifies the associated-cost clarification. Gifts and Samples page lines 936-942 state that packaging and delivery may be excluded, apply the threshold per occasion and recipient before GST, and explain when output tax is or is not due.
- [2] Goods and Services Tax Act 1993, Second Schedule paragraph 5
Attorney-General's Chambers of Singapore · Document date: 2026-10-26
Official indexed current text read for paragraph 5(1), 5(2)(a) and 5(2)(b): business-asset disposals, the S$200 business-gift exclusion and commercial-sample rule. Direct SSO body returned 403; wording was corroborated against a licensed SSO reproduction synced through 12 September 2026. Do not claim direct SSO body access.