Wednesday, 18 November 2015

Tribunal rules 28 Boulevard soho units GST exempt

Source: The Malaysian Insider

Tuesday, 17 November 2015

Tax Deduction for GST Payments

Are blocked input taxes allowable for tax deduction?  What about a GST registered person who forgoes his rights to claim input tax credit? These are the two common questions asked.

Finance Bill 2015 seeks to amend section 39 of the Income Tax Act, 1967 by stating:

  • that any amount paid or to be paid in respect of goods and services tax by a person is not allowed as a deduction if he is liable to be registered under the Goods and Services Tax Act 2014 and has failed to do so, or if he is entitled under that Act to credit that amount of tax as input tax, and 
  • that any amount of output tax paid or to be paid under the Goods and Services Tax Act 2014 which is borne by a person who is registered or liable to be registered under the GST Act is not allowed as deduction under the Income Tax Act.

These amendments have effect for the year of assessment 2015 and subsequent years of assessment.

Thursday, 7 May 2015

Understanding GST Tax Codes - Part 10

This is the last recommended 3 tax codes 


Supplies which are supply given relief from GST. Example supplies of goods to schools, supply of wheelchairs to private charitable entity for persons with disability.

P.U.(A) 273 - Goods and Services Tax(Relief) Order 2014
​P.U.(A) 59 - Goods and Services Tax (Relief)(Amendment) Order 2015 

Wednesday, 6 May 2015

Understanding GST Tax Codes - Part 9

Deemed Supply - DS

Goods supplied without consideration attracts GST. For example, goods removed from business for own consumption or private use by a business owner is deemed to have supplied by the business to the owner. Private use of business assets will also attract GST. Gifts below RM500 are not subject to this rule.

Tuesday, 5 May 2015

Understanding GST Tax Codes - Part 8

Exempt supplies ES

Use ES43 for provision of services which are exempted from GST.

Download GST (Exempt Supply) Order 2014 here

Friday, 24 April 2015

Understanding GST Tax Codes - Part 7

The next few parts of this series cover tax codes for supplies of goods and services.


Standard rated goods and services supplied by a registered taxable person. This is also known as output tax.

Thursday, 16 April 2015

Understanding GST Tax Codes - Part 6

Let's look at the last 3 tax codes for supplies, TX-E43, TX-N43 and TX-RE which only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader)


Purchase with GST incurred directly attributable to incidental exempt supplies.

Thursday, 9 April 2015

What is deductible from rental income?

Expenses incurred wholly and exclusive in the production of gross income are allowable for deduction. Here are the exact wordings of section 33(1) of the Income Tax Act, 1967:

Understanding GST Tax Codes - Part 4

Purchase of exempt supplies and purchase of goods outside the scope of GST


Purchase of exempt supplies such as toll, public transportation, medical etc.

DescriptionDr.Cr.Tax Code
Expenses - exempted suppliesTaxiEP


Purchase of goods outside the scope of GST.  Example, purchase of goods from overseas but the goods were sold directly to a customer outside of Malaysia. You are not entitled to claim input tax credit for any VAT or GST charged by the overseas supplier, if any.

Other examples are purchase of a business and transferred as a going concern .

DescriptionDr.Cr.Tax Code
Purchases - Out of ScopePurchaseOP
Overseas purchase but delivered to aTrade Payables
country outside Malaysia
Over to you ..... please send us your thoughts and feedback.


Previous: Understanding GST Tax Codes - Part 3

Wednesday, 8 April 2015

Understanding GST Tax Codes - Part 3

Part 3: Purchase of goods under special schemes and blocked input tax


Use this this tax code only if you have been granted approval under Approved Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS). Under these schemes, GST will suspended when the approved trader imports goods into Malaysia. These two schemes are designed to ease the cash flow of traders who have significant imports.

Tuesday, 7 April 2015

Understanding GST Tax Codes - Part 2

Part 2: Purchase of imported goods and zero-rated purchase


Goods and services purchased from GST registered suppliers which were zero-rated.

Monday, 6 April 2015

Understanding GST Tax Codes - Part 1

This is a follow-up on an earlier article entitled Knowing the 23 Tax Codes. Many asked why are tax codes important. This is because the accuracy of the figures in the GST-03 return that you submit to the Royal Customs Malaysia (RMC) on monthly or quarterly basis relies on the tax codes you punched into your accounting system. For example, tax code TX refers to goods and/or services purchased from GST registered suppliers and eligible to claim input tax credit. Then system will then post this figure to item 6(a) and 6(b) of you GST-03 form.

Let's  look at the first tax code for Purchase

Wednesday, 1 April 2015

Price Control and Anti-Profiteering

Today, with the implementation of Goods and Services Tax, marks a new era in Malaysian tax landscape. Consumers have to pay an additional 6% tax on goods and services consumed in Malaysia, except for certain goods and services which are considered a necessity in our daily lives such as rice, vegetables, fruits, medical, public transport, residential house etc.

Will there an increase in price of goods?

Thursday, 26 March 2015

Input Tax Credit and Blocked Input Tax

What is "input tax"? “Input tax” means GST on any taxable supply of goods or services to a taxable person including GST paid or to be paid by a taxable person on any importation of goods. The goods or services are used or are to be used for the purposes of any business carried on or to be carried on by the taxable person.

Wednesday, 25 March 2015

Knowing the 23 GST Tax Codes

The Royal Malaysian Customs recommended 23 tax codes to be entered in your accounting software for all GST related transactions. Entering the wrong tax codes will affect the accuracy of your GST-03 return forms.

The Tax Codes can be downloaded here:

Director General’s Decision: 2/2015 (25 March 2015)

New DG's decision issued

Small Office Home Office (SOHO)

Sunday, 22 March 2015

Sales Tax Special Refund

With the introduction of Goods and Services Tax (GST) with effect from 1 April 2015, registered businesses are entitled to a special Sales Tax refund on goods held in stock on 1 April 2015, provided certain conditions are fulfilled. These goods must have been subject to Sales Tax and the Sales Tax must have been paid before 1 April 2015. The claim for this special refund must be submitted to the Royal Malaysian Customs (RMC) by 30 September 2015.

Persons eligible to claim this refund must be mandatorily registered for GST by 1st April, and any business which holds such stock of goods or materials, spares, etc is entitled. However, where Sales Tax for such goods cannot be evidenced in the supporting invoices, the RMC will only refund 20 per cent of the Sales Tax imputed in the goods held at 1st April 2015.

In order to claim the special refund in instances where the amount of the Sales Tax is RM10,000 or more, the claimant will require an external auditor to provide a Special Refund Certification. Baker Tilly will be able to assist claimants in this respect and undertake the necessary procedures to provide such certification.

Please contact your dedicated Baker Tilly's advisor for more information.
+604-2888 258

On Your Marks, Get Set ............ Hang On, Hang On!!

9 days to go! Have you read the transitional provisions before GST kicks off on 1 April 2015?

Download the guide here:

Wednesday, 25 February 2015

Monthly Tax Deduction

The new Income Tax (Deduction from Remuneration) Rules 1994 now requires Monthly Tax Deduction (MTD) calculation to include all types of employment income under section 13(1) of the Income Tax Act. 1967, which includes salary, director’s fee, allowances, overtime, fee, commissionbonus, benefits-in-kind (BIK), Value Of Living Allowances (VOLA), unapproved pension or provident fund, compensation for loss of employment but excludes reimbursements by the employer and exempt income under the law.
MTD remittance is now extended to 15th day of the following month.

Tuesday, 24 February 2015

Are you GST ready?

GST is a broad based multi-staged consumption tax covering all sectors of the economy, levied on the supply of goods and services at every stage of the supply chain from the supplier up to the retail stage of the distribution. In short, GST has an implication on all business operations, whether they are small or large businesses operating in Malaysia cum 1st April 2015.

GST readiness basic checklist:

  • Understand GST framework and mechanism: Although the general principles and concepts of GST are the same for many countries, you advised to understand the GST requirements as provided in the GST Act, 2014 and other supplementary acts; and agreed practices and guidelines provided by the Royal Malaysian Customs (RMC)
  • GST impact study: Review and identifying business transactions affected by GST implementation. Refer to RMC industry guide:
  • Transitional provisions: Understand and prepare the necessary transitional arrangements moving into the GST era on 1 April 2015. Sales and Services Tax will be abolished from 1 April 2015.
  • Preparation for GSTRegistration (mandatory registration deadline is 28 February 2015), staff training, IT system readiness,  familiarisation of accounting double entries affecting GST, mapping accounting chart of accounts and transactions to recommended GST tax codes.
  • GST reporting and reconciliation: Reconcile and balance all GST figures in your GST-03 return form with accounting data

NextGST framework and mechanism