2 October, 2018
Income tax
The Inland Revenue Board of Malaysia has recently issued four new public rulings on:
(i) Qualifying Expenditure and Computation of Industrial Building Allowance (Public Ruling No 3/2018) –– issued on 12 September 2018;
(ii) Taxation of a Resident Individual Part I –– Gifts or Contributions and Allowable Deductions (Public Ruling No 4/2018) –– issued on 13 September 2018;
(iii) Taxation of a Resident Individual Part II –– Computation of Total Income and Chargeable Income (Public Ruling No 5/2018) –– issued on 13 September 2018; and
(iv) Taxation of a Resident Individual Part III –– Computation of Income Tax and Tax Payable (Public Ruling No 6/2018) –– issued on 13 September 2018.
Goods and Services Tax
The Goods and Services Tax (Repeal) Act 2018 has been gazetted on 28 June 2018 and has come into operation on 1 September 2018.
Sales tax
The Sales Tax Act 2018 has been gazetted on 28 August 2018 and has come into operation on 1 September 2018.
Following the above, the following regulations and orders have also been gazetted between 28 August 2018 and 6 September 2018 (both dates inclusive):
(i) the Sales Tax Regulations 2018 have come into operation on 1 September 2018;
(ii) the Sales Tax (Customs Ruling) Regulations 2018 have come into operation on 1 September 2018;
(iii) the Sales Tax (Determination of Sale Value of Taxable Goods) Regulations 2018 have come into operation on 1 September 2018;
(iv) the Sales Tax (Imposition of Sales Tax in Respect of Designated Areas) Order 2018 has come into operation on 1 September 2018;
(v) the Sales Tax (Imposition of Sales Tax in Respect of Special Areas) Order 2018 has come into operation on 1 September 2018;
(vi) the Sales Tax (Exemption from Registration) Order 2018 has come into operation on 1 September 2018;
(vii) the Sales Tax (Total Sale Value of Taxable Goods) Order 2018 has come into operation on 1 September 2018;
(viii) the Sales Tax (Persons Exempted from Payment of Tax) Order 2018 has come into operation on 1 September 2018;
(ix) the Sales Tax (Goods Exempted from Tax) Order 2018 has come into operation on 1 September 2018;
(x) the Sales Tax (Compounding of Offences) Regulations 2018 have come into operation on 1 September 2018;
(xi) the Sales Tax (Rates of Tax) Order 2018 has come into operation on 1 September 2018;
(xii) the Sales Tax (Goods Exempted from Tax) (Amendment) Order 2018 has come into operation on 1 September 2018;
(xiii) the Sales Tax (Rates of Tax) (Amendment) Order 2018 has come into operation on 6 September 2018; and
(xiv) the Sales Tax (Goods Exempted from Tax) (Amendment) (No. 2) Order 2018 has come into operation on 6 September 2018.
The following new and revised General Guides have been published on the Royal Malaysian Customs Department’s MySST website:
- General Guide on Sales Tax (as at 7 September 2018)
- Guide on Sales Tax Rates for Various Goods (as at 8 September 2018).
Further, a revised version of the Specific Guide on Sales Tax Return and Payment (as at 5 September 2018) has also been published on the Royal Malaysian Customs Department’s MySST website.
Service tax
The Service Tax Act 2018 has been gazetted on 28 August 2018 and has come into operation on 1 September 2018.
Following the above, the following regulations and orders have also been gazetted between 28 August 2018 and 6 September 2018 (both dates inclusive):
(i) the Service Tax (Customs Ruling) Regulations 2018 have come into operation on 1 September 2018;
(ii) the Service Tax (Imposition of Tax for Taxable Service in Respect of Designated Areas and Special Areas) Order 2018 has come into operation on 1 September 2018;
(iii) the Service Tax (Rate of Tax) Order 2018 has come into operation on 1 September 2018;
(iv) the Service Tax Regulations 2018 have come into operation on 1 September 2018;
(v) the Service Tax (Compounding of Offences) Regulations 2018 have come into operation on 1 September 2018;
(vi) the Service Tax (Amendment) Regulations 2018 have come into operation on 6 September 2018; and
(vii) the Service Tax (Imposition of Tax for Taxable Service in Respect of Designated Areas and Special Areas) (Amendment) Order 2018 has come into operation on 6 September 2018.
A revised version of the General Guide on Service Tax (as at 8 September 2018) has been published on the Royal Malaysian Customs Department’s MySST website.
Further, the following new and revised Industry Guides have also been published on the Royal Malaysian Customs Department’s MySST website:
- Accommodation (as at 7 September 2018)
- Betting and Gaming (as at 4 September 2018)
- Domestic Flight (as at 9 September 2018)
- Information Technology Services (as at 9 September 2018)
- Insurance and Takaful (as at 19 September 2018)
- Professional Services (as at 4 September 2018).
Transitional Rules
A revised version of the Transitional Rules (as at 4 September 2018) have also been published on the Royal Malaysian Customs Department’s MySST website.
Director General’s decisions
The Director General of Customs and Excise has issued decisions on the following issues and these decisions have been published on the Royal Malaysian Customs Department’s MySST website:
(i) Issuance of Tax Invoice On or After 1/9/2018 (as at 8 September 2018)
(ii) Declaration of Importation by Licensed Manufacturing Warehouse (LMW) (as at 8 September 2018)
(iii) Retention Payments (GST Transitional Issue) (as at 8 September 2018)
Customs duty
The Customs (Amendment) Act 2018 has been gazetted on 28 August 2018 and has come into operation on 1 September 2018.
The following regulations have also been gazetted on 29 August 2018 and have come into operation on 1 September 2018:
(i) Customs Regulations (Appeal Tribunal) (Amendment) 2018
(ii) Customs (Amendment) Regulations 2018.
For further information, please contact:
Abhilaash Subramaniam, Shearn Delamore & Co
abhi@shearndelamore.com
