E-invoicing for Employment Perquisites and Benefits

Employment Perquisites and Benefits

Individuals who are under a contract of service (i.e., employment) may have employee benefits provided by their employer. Employee benefits may include benefits in cash or in kind that an employee receives from an employer or third party as a result of being employed or performing work, such as:

Currently, employees must submit their expense claims to their employers.

• If employees are allowed to claim expenses from their employer, they must provide supporting documents (e.g., bills, receipts, invoices, statements, payment slips, etc.) to prove the authenticity of the expenses. These claimed expenses will be recorded as the employer’s expenses and reported for tax purposes.
• With the implementation of e-Invoice, when a sale or transaction is completed, employees need to request e-Invoices to be issued to their employer as proof of expense, whenever possible.
• The IRBM acknowledges the challenges in obtaining e-Invoices issued in the employer’s name (as the Buyer). To address this, the IRBM provides the following concession:

(a) Businesses will be allowed to use e-Invoices issued in the employee’s name as proof of expense for tax purposes for specific transactions.

(b) If payment for perquisites and benefits is made to foreign suppliers, both the employer and employee are not required to issue a self-billed e-Invoice. Instead, the IRBM will accept foreign supplier’s receipts/bills/invoices as proof of expense. However, this exception applies only if the perquisites and benefits are clearly stated in the employer’s policy.

Based on the scenario mentioned above, the following steps are involved in the process:

• These steps ensure a streamlined process for managing employment perquisites and benefits through e-Invoicing.

Conclusion

In summary, E-invoicing for Employment Perquisites and Benefits revolutionizes employee benefits management. This digital solution enhances efficiency, accuracy, and cost control for employers, while offering a streamlined and eco-friendly expense claim process for employees. Say goodbye to traditional methods and embrace the future of employee benefits with E-invoicing.

Disclaimer: The information provided on this platform is for general informational purposes only. It does not constitute professional advice and should not be relied upon for making decisions. Wanconnect Consulting Group is not responsible for any errors or omissions in the content or for any actions taken based on the information provided. We recommend seeking professional advice for specific situations. Wanconnect Consulting Group reserves the right to modify, update, or remove any content without notice.