PRESENTED BY : HENG SZE WAN 207925 LEE BOON PIN 207941 LIM SHWU YING 207942

INDIRECT TAX SYSTEM

Sales Tax
Goods and Service Tax (GST)

Types of indirect tax

Servic e Tax

MALAYSIA ROYAL CUSTOM DEPARTMEN T

Excise Duty

Custom Duty (Import and Export)

Service Tax
Group A Group B1 Group B2 Hotels having more than 25 rooms Restaurants located in hotel having more than 25 rooms Restaurants located in hotel having 25 rooms or less with an annual sales turnover of taxable services exceeding Ringgit Malaysia (RM) 300, 000.

Group C

Restaurants located outside hotel with an annual sales turnover of taxable

services exceeding Ringgit MalaysiaRM3, 000,000. In the case of food courts, the amount is RM300,000

Group D

Night-Clubs, Dance Halls, Cabarets, Health Centers, Massage Parlors, Public Houses and Beer Houses

Group E

Private Clubs an annual sales turnover of taxable services exceeding

RM300, 000

Group E1

Golf Course and Golf Driving Range other than those in Groups A and E with an annual sales turnover of taxable services exceeding RM300, 000

Group F

Private Hospitals with an annual sales turnover of taxable

services exceeding RM300, 000

Group G Other Service Providers

Refer Second Schedule of Service Tax Regulation 1975

Service Tax
6% (wef 1 Jan 2011)
Tax Rate

Payment

2 calender month period Eg: Jan-Feb = 28 March

Sales Tax

Sales tax is a single stage tax levied on certain imported and locally manufactured goods apply throughout Malaysia excluding Joint Development Area (JDA), free zones, and Licensed Manufacturing Warehouses (LMW).

Rate of Sales Tax

Sales tax is an ad valorem tax, a tax which computed based on the value of the taxable goods.
Categories Rates

Fruits, certain foodstuffs and building materials

5%

General goods (including motor vehicles) Liquor and alcoholic drinks Cigarette and cheroots

10%

20% 25%

Offences and Penalty

Late Payment Penalty ( same as Service Tax ) -if fails to pay the sales tax due within the stipulated period of 28th days, penalty of 10% will imposed on unpaid sales tax -A further 10% on sales tax due for more than 30 days -an additional penalty of 10% for every 30 days up to maximum 50%
Late payment Penalty

Fails to pay in 28 days 10%

Each subsequent period of 30 days Additional 10% to a max 50%

Goods and Services Tax (GST)

GST is a MULTI-STAGE consumption tax on goods and services. Main idea of GST 4%, REPLACE the sales and service tax (SST). Charge- All goods and services made in Malaysia including imports but except for the common commodities such as rice, flour & sugar and services. Charge- From the SUPPLIER up to the RETAIL stage of the distribution. Not cost of the product- CONSUMER bears the burden of the tax.

Goods and Services Tax (GST)

Type of supply
Type of Supply
Collectio Claim non GST input credit on tax

Penalty
Offences Penalties

General
1.Standard supplies (4%) 2.Zero rated No Yes rated Yes Yes

-A fine not exceeding RM5,000; and -An imprisonment term not exceeding 6 months

Penalties

supplies (0%)
3.Exempt supplies No 4.Supplies not No -

in default of payment.

within the scope of GST

Custom Duty
Export Duty Import Duty

Tax rate - ad valorem rate

1. An excise duty is commonly referred to as an inland tax on the sale, or production for sale, of specific selected range of goods in Malaysia 2. Goods that are subject to excise duty are liquor, cigarettes, tobacco, motor vehicles, playing cards and mahjong titles. 3. Manufacturer of alcohol, liquor, tobacco, cigarettes, motor vehicles, playing cards, and mahjong titles are require having an excise license. 4. makingand offence Penalty incorrect fine not exceeding

statements

five hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both

Description
Beer made from malt: I. No exceeding 5.8% vol II. other Wine: (1litre) I. Sparkling wine II. Wine III. Rice wine IV. Wine with fermentation fruit juice Cigarette Playing cards Motor vehicle

Tax rate
15% and RM 7.4 15% and RM 7.4
15% and RM34 15% and RM12 15% and RM22 15% and RM30 20% 10% 60%-105%

Contact Us
http://www.customs.gov.my/
HOTLINE :603 7806 7200