Malaysia GST registration deadline delay.
As plans move forward for the introduction of Malaysian GST on 1 April 2015, the tax authorities have provided an update on a number of issues.
- The Malaysian registration threshold is not to be raised as hoped. The registration threshold is MYR 500,000.
- The registration threshold deadline is to be extended to 28 February 2015. Companies missing this deadline will face a potential fine of MYR30,000.
End of Malaysian Sales and Service Taxes
GST will replace two taxes: Sales Tax on goods; and Service Tax on services. Both are turnover taxes at the point of final supply to the consumer. This creates the potential for cascading taxation as there are limited opportunities to reclaim any tax by businesses in the production chain. It also may encourage VAT fraud. It will also help broaden the tax base and help to fund cuts to income taxes.
The rate for the new consumption tax will be 6%, which is one of the lowest in Asia.