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?