New Services to be Exempt from the GST
Updated on Tuesday 18th July 2017
The Malaysian Government agreed to extend the zero-rated supply for GST purposes for fur more types of services. These include those services performed in relation to or for the purpose of export activities, research and development activities for overseas customers and non-recurring expenditure that qualifies and engineering expenses (including machinery, tools, and machinery used for the purpose of manufacturing goods in the country).
Experts believe that the introduction of new zero-rated goods can increase the number of foreign investments in Malaysia and can also maximize the existing job opportunities. The effects of the zero-rate GST would be clear in the manufacturing industry, experts believe.
The team of experts at our law office in Malaysia can help you with information on the applicable tax regime, according to your type of business.
The goods and services tax is the equivalent of the value added tax and it is levied at a rate of 6% on the supply of selected goods. Zero-rated supplies include goods that are considered to be basic (rice, fish, meat, chicken, vegetables, domestic water). The zero-rate also applies to the exports of goods. Supplies that are exempt include life insurance and/or private health services, private education services, financial services and others.
One of our lawyers in Malaysia can give you more information on the indirect taxes and how they apply to your business.
Contact us for more information and tax advice and planning in Malaysia.
Malaysia’s new initiative to include more zero-rated services in the scope of its goods and services tax (GST) has the potential to attract more foreign investors. Experts believe that reducing the GST for four more services is a right step for encouraging investors, especially manufacturers. Our lawyers in Malaysia can give you complete information on the latest legislative initiative to change the current taxation scheme.
New exemptions from the services tax
The Malaysian Government agreed to extend the zero-rated supply for GST purposes for fur more types of services. These include those services performed in relation to or for the purpose of export activities, research and development activities for overseas customers and non-recurring expenditure that qualifies and engineering expenses (including machinery, tools, and machinery used for the purpose of manufacturing goods in the country).
Experts believe that the introduction of new zero-rated goods can increase the number of foreign investments in Malaysia and can also maximize the existing job opportunities. The effects of the zero-rate GST would be clear in the manufacturing industry, experts believe.
The team of experts at our law office in Malaysia can help you with information on the applicable tax regime, according to your type of business.
Taxation in Malaysia
The goods and services tax is the equivalent of the value added tax and it is levied at a rate of 6% on the supply of selected goods. Zero-rated supplies include goods that are considered to be basic (rice, fish, meat, chicken, vegetables, domestic water). The zero-rate also applies to the exports of goods. Supplies that are exempt include life insurance and/or private health services, private education services, financial services and others.
One of our lawyers in Malaysia can give you more information on the indirect taxes and how they apply to your business.
Contact us for more information and tax advice and planning in Malaysia.