Malaysia Hotline : +603-2141 8908
After the government introduced the
sales tax in 1972, the service tax was introduced in 1975 to form a Sales and Service
Tax (SST), which was replaced by the Consumption Tax (GST) on April 1, 2015.
After the change of the government, the new government will adjust the GST tax
rate to 0% from June 1, 2018, and officially introduced SST on September 1.
The
Difference between GST and SST
|
SST
|
Differences
|
GST
|
|
Single
Tax System.
For
manufacturers only, manufacturers only need to pay the relative tax rate to
the government.
|
Tax System
|
Multi-Stage
Tax System.
Involving
manufacturers, distributors, retailers and final consumers.
The
output tax reported by the dealer can be absorbed from the input tax, pay
only the tax difference between the two.
|
|
Different
from others fields, and whether the company’s total sales in the fiscal year
are eligible for submission
For
example, the annual turnover of the restaurant industry exceeds RM500, 000,
and the service tax registration is required.
|
Involved Range
|
Merchants
in any field must register and report GST as long as the total sales in the
fiscal year are close to RM500, 000.
|
|
Manufacturers
only need to add taxes to the summary of Invoice.
|
Difficulty
|
The
company must calculate the output tax and the absorption from the input tax
(Input Tax), pay only the tax difference between the two
|
|
Mainly
absorbed by the party (manufacturer) who paid, but most manufacturers will
calculate this expense in the price of the item. So in the end, consumers are
not easily aware of the increase in spending, which we call ‘hidden tax’.
|
Expenditure
|
Since
the tax system is paid by multiple levels of payers, the summary paid by each
party includes GST, so the final expenditure is borne by the final consumer.
|
|
In
2014, this single tax system brought RM20 billion in revenue to the
government.
|
Government Revenue
|
Since
its launch, GST has generated about RM40 billion in annual revenue for the
government.
|
SST
Listings
Here's a simple list for everyone:
1.
10% SST
a) Beverages: bottled mineral water and
boxed soda, boxed drinks and wine;
b) Electronics: digital cameras, mobile
phones and projectors
2.
6% SST
a)
Advanced services: hotels, nightclubs, private clubs, golf clubs with a
turnover of more than RM500,000;
b)
Catering industry: restaurants and hawkers centres with internal and external
sales of more than RM1 million;
c)
Services: communications, accountants, professional engineers, attorneys' fees,
parking services, courier services, car services, professional agencies,
insurance companies or Islamic insurers, etc.;
d) Gaming industry.
3.
5% SST
a) Processed foods: dried mangoes, dried
pears, processed nut products and frozen durians;
b) Electronic products: laptops, small
notebooks, mice, keyboards, printers and photocopiers;
c) Wine.
4.
0% SST
a) Daily necessities;
b) Medical drugs;
c) Wards and food in private hospitals;
d) Canteens in schools and places of
worship.
In addition to providing financial and
taxation services, Tannet Malaysia also offers a wide range of one-stop
business services such as corporate secretarial services, translation and
notary certification services, copywriting documents, international company
registration, intellectual property registration services, information platform
development and other services!
Contact
Tannet
If you have further queries, please
contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours China hotline：86-755-
36990589;
Email: mytannet@gmail.com
TANNET GROUP:
http://www.tannet-group.net , http://en.tannet.com.my