Category Archives: Taxation

NON ALLOWABLE INPUT TAX While is general, input tax is claimable under Standard and Zero-rated supplies, there are certain instances where Input Taxes are blocked, ie. not claimable. They are the followings:- Purchase and/hire of passenger cars Benefits given to family members of employees Club fees (joining or subscription) for recreational/sporting purposes Medical and personal…

(< Section 2 – How does GST work?) TAXABLE SUPPLIES Supply means to provide, serve or furnish something. This is normally the situation where one person supply something to a receiver in return for a consideration. Taxable supplies therefore covers the following items in general:- Sale of goods Provision of services Business gift exceeding RM500…

HOW DOES GST WORK? At a glance, GST comes with a flat rate of 6% on the invoice value. Below is a simple example to show the mechanics of GST in practise:- As you can see, burden of paying the 6% GST is on the Consumer. GST is NOT a cost to businesses, but rather…

WHAT IS GST? Goods and Service Tax (“GST”) is governed by the Royal Malaysian Customs Department, and it is a replacement of the current Sales Tax and Service Tax. GST is a consumption tax, which means the more you consume, the more GST you need to pay. GST is applicable on goods and services that…

RPGT is a tax imposed on gains from disposal of all types of properties such as residential and commercial buildings, land and shares of real property companies. RPGT is imposed on the net gains from disposal of property after deducting the following costs:- Acquisition price Stamp duty Legal fees Renovation costs Commission for sales and…

In Malaysia, a corporate covers the following entities:- Company, both private and public Trust body Executor of an estate of an individual domiciled outside Malaysia at the time of his death Receiver appointer by the court Limited liability partnership The current fixed income tax rate is 25% on the Chargeable Income of the corporate. However,…

Effective Year of Assessment 2015 (meaning from 1 January 2015 onwards), the tax rates for individual residents of Malaysia shall be reduced by 1% to 3% as follows:- The above proposal is to increase disposable income, and in line with the implementation of GST. This tax structure, according to the Budget 2014, is more competitive…

Previously, we discussed What is GST in Malaysia. Click on the bolded link to read. Registration on GST Before we move into the registration and requirements on GST, let me recap the qualification criteria. All businesses will fall within the scope of GST unless they are specifically defined as zero-rated, exempt or out-of-scope. The prescribed threshold…

GST has been a taboo word in Malaysia for the past few years as there have been numerous speculations as to when and how GST will be implemented in Malaysia. As this article is being written, the Malaysian government could have well started implementing GST in a testing stage, and probably be expected to roll…