While the decision of bringing back the Sales and Services Tax (SST) is not yet finalised, companies in Malaysia need to prepare themselves adequately to avoid any penalties and ensure smooth business operations.
Though the Goods and Services tax (GST) is zero-rated now, companies are still required to adhere to the zero-rate and continue to comply to all GST requirements under the current legislation which includes the issuance of tax invoices, GST tax codes, submission of GST returns for the respective taxable periods and claiming of input tax credit. GST registered companies should also ensure that the pricing of goods and services is, at all times, in accordance with the Price Control and Anti-Profiteering Act 2011.
Keep reading for some suggestions and insights from our experts to help you navigate through this change.
On the transition to SST, the government of Malaysia is in the midst of revamping the SST policy. SST will be reintroduced in September 2018 and the business community can contribute their concerns and suggestions to the government.
While Labuan, is one of the Federal Territory in Malaysia, it is the only mid-shore jurisdiction in Malaysia and the world. It is a designated area and are exempted from Malaysia's GST. Thus, the changes in Malaysia's GST and SST will not impact Labuan nor applicable to Labuan companies. Find out more about TMF Labuan and our services here.
Stay one step ahead
Companies can start preparing a transition plan to SST from GST that involves:
- analysing the impact of the transition and communicate with the stakeholders as well as the government
- steps to review all contracts and transition, pricing and system updates upon the release of the new tax scheme
- come up with a clear map and timeline to carry out the full transition
- prepare trainings and resources upon implementation of the new tax scheme
- identify key persons to take charge of different functions along the transition
We expect more guidance and clarification on the new SST to be released in the near future. To stay up to date with the latest developments in the Malaysian tax environment, subscribe to our free eAlert service.
Talk to us
Companies in Malaysia should come up with a detailed transition plan to make sure their accounting and reporting systems are in place and compliant with the new government's regulations. TMF Malaysia's team of experts can help your company to navigate through this transition.
Have questions or need more information? Make an enquiry with us today.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.