Category Archives: Taxation

GST Malaysia – Section 4 – Non-Allowable Input Tax, Bad Debts Relief, Record Keeping and Offences & Penalties

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…

GST Malaysia – Section 3 – Taxable Supplies, Value of Supply & Time of Supply

(< 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…

Highlights of Budget 2014 – Real Property Gains Tax (“RPGT”)

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…

Highlights of Budget 2014 – Corporate Income Tax

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,…

GST Requirements & Penalties in Malaysia

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…