S S T IMPLEMENTATION BRIEFING SESSION PROPOSED SERVIC E TAX - - PowerPoint PPT Presentation

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S S T IMPLEMENTATION BRIEFING SESSION PROPOSED SERVIC E TAX IMPLEMENTATION MODEL Royal Malaysian Customs Department fppt.com CONTENT OF BRIEFING Proposed Legislation Special rules for specific areas Scope and charge Accounting

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SLIDE 1

S S T IMPLEMENTATION BRIEFING SESSION

PROPOSED SERVIC E TAX IMPLEMENTATION MODEL

Royal Malaysian Customs Department

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SLIDE 2

CONTENT OF BRIEFING

Proposed Legislation Scope and charge Service tax mechanism Taxable person Taxable goods Rate Taxable services Registration Returns / Payment Contra System Facility

  • Special rules for specific

areas

  • Accounting
  • Miscellaneous
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SLIDE 3

Proposed Service Tax Legislation

Act

  • Service Tax Act 2018

Regulations

  • Service Tax Regulations 2018
  • Service Tax (C

ustoms Ruling) Regulations 2018

  • Service Tax (Compounding of Offences) Regulations 2018

Order

  • Service Tax (Amount Of Value o f Taxable Service) Order 2018
  • Service Tax (Rate Of Tax) Order 2018
  • Service Tax (Appointment o f

Date o f Coming Into 2018 Operation) Order

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SLIDE 4

SC OPE AND C HARGE

Se r v ice t a x is ch a r g e d o n :-

  • a n y p r o v is io n o f t a x a b le s e r v ice s ;
  • m a d e in t h e co u r s e o r fu r t h e r a n c e o f a n y b u s in e s s ;
  • b y a t a x a b le p e r s o n ; a n d
  • in M a la y s ia .

Se r v ice t a x is n o t c h a r g e a b le o n :

  • im p o r t e d s e r v ice s
  • e xp o r t e d s e r v ice s
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SLIDE 5

HOW SERVICE TAX WORKS?

Government collects tax service provider ONCE (at the start) Tax rate = 6% Government collects tax ONCE (at the start) Businesses Consumer

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SLIDE 6

TAXABLE PERSON

  • A s e r v ic e p r o v id e r w h o is lia b le t o b e r e g is t e r e d o r

r e g is t e r e d u n d e r t h e S e r v ic e T a x A c t 2 0 1 8

  • t h e s e r v ic e p r o v id e r p r o v id e s t a x a b le s e r v ic e s in

t h e c o u r s e o r fu r t h e r a n c e o f b u s in e s s in M a la y s ia

Q

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SLIDE 7

TAXABLE SERVIC ES AND RATE OF TAX

Threshold

> v a lu e o f t a x a b le s e r v ic e s p r o v id e d b y a s e r v ic e p r o v id e r fo r a p e r io d

  • f

1 2 m o n t h s t h a t e x c e e d s a t h r e s h o ld

  • f

R M 5 0 0 ,0 0 0 is li a b le t o b e r e g is t e r e d

Rate of tax

r F ix e d a t a r a t e o f 6 % > P r o v is io n o f c r e d it c a r d o r c h a r g e c a r d s e r v ic e s ✓ A s p e c ific r a t e o f t a x o f R M 2 5 is im p o s e d u p o n i s s u a n c e

  • f

p r in c ip a l

  • r

s u p p le m e n t a r y c a r d a n d e v e r y s u b s e q u e n t y e a r o r p a r t t h e r e o f

i

L

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SLIDE 8

TAXABLE SERVIC ES

r H o t e l r > In s u r a n c e a n d T a k a fu l > > Se r v ic e o f fo o d a n d b e v e r a g e > p r e p a r a t io n r r Clu b r

r Ga m in g

r > T e le c o m m u n ic a t io n > r P a y -T V r > F o r w a r d in g a g e n t s > r Le g a l r A c c o u n t in g r r Su r v e y in g r r A r c h it e c t u r a l r r Va lu e r > E n g in e e r in g E m p lo y m e n t a g e n c y Se c u r it y M a n a g e m e n t s e r v ic e s P a r k in g M o t o r v e h ic le s e r v ic e o r r e p a ir Co u r ie r H ir e a n d d r iv e c a r A d v e r t is in g D o m e s t ic flig h t e x c e p t R u r a l A ir Se r v ic e s Cr e d it o r c h a r g e c a r d IT s e r v ic e s E le c t r ic it y

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SLIDE 9

HOTEL, INSURANC E AND TAKAFUL

Hotel in clu d e s:

r lo d gin g h o u se r s e r vice a p a r t m e n t r h o m e s t a y r Inn r r e st h o u se r b o a r d in g h o u s e

  • Se r vice t a x ch a r ge d o n a ct u a l va lu e o f t a xa b le s e r vice p r o vid e d

Insurance and Takaful in clu d e s :

> All in s u r a n ce B2 B

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SLIDE 10

SERVIC E OF FOOD AND BEVERAGE PREPARATION

Service of food and beverage preparation in clu d e s :

r r e s t a u r a n t r ca fe r ca t e r in g r t a k e -a w a y r food tr u ck r r e ta il o u tle t r h a w k e r s r etc.

  • Se r vice t a x ch a r ge d o n a ct u a l va lu e o f t a xa b le s e r vice p r o vid e d

Provision of electricity:

> B2 C; m o r e t h a n 6 0 0 k W h Se r vice t a x ch a r ge d o n a ct u a l va lu e o f t a xa b le s e r vice p r o vid e

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SLIDE 11

CLUBS AND GAMING

Clu b s r N ig h t c lu b r P r iv a t e clu b > Go lf clu b a n d g o lf d r iv in g r a n g e

  • Se r v ice t a x ch a r g e d o n a ct u a l v a lu e o f t a xa b le s e r v ice p r o v id e d

G a m in g r Ca s in o r Ga m e o f ch a n ce r Sw e e p s t a k e s

  • Se r v ice t a x ch a r g e d o n co lle ct io n , b a s e d o n fo r m u la

> Ga m in g m a ch in e s > Lo t t e r y > B e t t in g

1 1

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SLIDE 12

REGISTRATION

Type of registration C

  • nditions

V a lu e e x c e e d R M 5 0 0 ,0 0 0 M a n d a t o r y ■ 1 st d a y o f t h e m o n t h fo llo w i n g t h e m o n t h o f a p p li c a t i o n V o lu n t a r y V a lu e b e lo w R M 5 0 0 ,0 0 0 ■ D G m a y d e t e r m in e B r a n c h / D iv is io n In t h e n a m e o f t h e b r a n c h / d i v i s i o n ■ D G m a y d e t e r m in e

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SLIDE 13

SERVICE TAX REGISTRATION

Determination of Taxable Turnover

  • Se r v ic e P r o v id e r s h o u ld c a lc u la t e t h e v a lu e o f t a x a b le s e r v ic e s

p r o v id e d fo r a p e r io d o f 1 2 m o n t h s u s in g t h e fo llo w in g m e t h o d : i. H is t o r ic a l M e t h o d ; T h e t o t a l v a lu e o f t a x a b le s u p p lie s in t h a t m o n t h a n d t h e 1 1 m o n t h s im m e d ia t e ly p r e c e d in g t h e m o n t h ;

  • ii. F u t u r e M e t h o d ;

T h e t o t a l v a lu e o f t a x a b le s u p p lie s in t h a t m m o n t h s im m e d ia t e ly s u c c e e d in g t h e m o n t h i a n d t h e 1

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SLIDE 14

SERVICE TAX REGISTRATION

Transitional Registration

  • Any person who liable to register are required to register before 1st

September 2018 and registration commencement date will be on 1st September 2018.

  • Automatic Registration
  • Service Provider who is a GST Registrant which have been identified

and fulfilled the required criteria will be registered automatically as a registered person.

  • A registrant person need to charge tax beginning 1st September 2018.

Persons Not Registered Automatically

  • Service Provider who is a GST registered person that fulfil the required

criteria to be registered but was not registered by 1st September 2018 need to apply for registration within 30 days from the comme

d a t e .

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SLIDE 15

RETURNS

  • R e g is t e r e d p e r s o n h a s t o d e c la r e s e r v ic e t a x r e t u r n e v e r y

t w o m o n t h s a c c o r d i n g t o t h e t a x a b le p e r io d .

  • S e r v ic e t a x r e t u r n h a v e t o b e s u b m it t e d n o t la t e r t h a n t h e

la s t d a y o f t h e fo llo w i n g m o n t h a ft e r t h e t a x a b le p e r io d e n d e d .

  • S e r v ic e

t a x r e t u r n h a v e t o b e s u b m it t e d ir r e s p e c t iv e w h e t h e r t h e r e is a n y t a x t o b e p a id o r

  • S e r v ic e t a x r e t u r n m u s t b e s u b m it t e d

p o s t .

15P

  • t .

, \

e le c t r o n i c a lly : b y

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SLIDE 16

PAYMENT

  • P a y m e n t o f s e r v ic e t a x h a s t o b e m a d e

■ E le c t r o n ic a lly ; o r ■ B y c h e q u e , b a n k d r a ft a n d p o s t e d t o S S T P r o c e s s i n g C e n t r e .

  • L a t e p a y m e n t p e n a lt y o n t h e a m o u n t o f s e r v ic e t a x n o t p a id

1 0 % - fir s t 3 0 d a y s p e r io d . 1 5 % - s e c o n d 3 0 d a y s p e r io d 1 5 % - t h ir d 3 0 d a y s p e r io d N o t e : M a x im u m p e n a lt y 4 0 % a ft e r 9 0 d a y s

■ ■ ■

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SLIDE 17

SERVIC E TAX FAC ILITY

Contra System

R e g is t e r e d p e r s o n is a llo w e d t o d e d u c t s e r v ic e t a x in h is r e t u r n fo r a n y c a n c e lla t io n a n d t e r m in a t io n o f s e r v ic e s o r a n y o t h e r r e a s o n s s u c h a s r e d u c in g p r e m iu m s o r d is c o u n t s .

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SLIDE 18

SPEC IAL RULES

Treatment in Designated Area (DA)

De s ign ate d Are a ( n o t d e e m e d o u ts id e Malays ia)

La b u a n , La n g k a w i a n d T io m a n

Se rvice s p ro vid e d b e tw e e n an d w ith in DA

N o t s u b je ct t o s e r v ice t a x e x ce p t p r e s cr ib e d b y M in is t e r

Pro vis io n s o f s e rvice s

  • F r o m P CA t o DA
  • s u b je ct t o s e r v ice t a x e x ce p t p r e s cr ib e d

b y M in is t e r

  • F r o m DA t o P CA
  • s u b je ct t o s e r v ice t a x
  • T o / fr o m DA t o SA* - n o s e r v ice t a x

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* Sp e cia l Ar e a = Fr e e Zo n e , Lice n s e d W a r e h o u s e , Lice n s e d M a n n fa r h ir in a W a r e h o u s e a n d Jo in t De ve lo p m e n t Ar e a (JDA)

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SLIDE 19

SPEC IAL RULES

Treatment in Special Area (SA)

Sp e cial Are a ( n o t d e e m e d o u ts id e Malays ia)

Fr e e Zo n e , Lice n s e d W a r e h o u s e , Lice n s e d M a n u fa ct u r in g W a r e h o u s e a n d Jo in t D e v e lo p m e n t Ar e a (JDA)

Se rvice s p ro vid e d b e tw e e n an d w ith in SA

N o t s u b je ct t o Se r v ice Ta x e x ce p t p r e s cr ib e d b y M in is t e r

Pro vis io n s o f s e rvice s

  • F r o m P CA t o SA - s u b je ct t o s e r v ice t a x e x c e p t p r e s cr ib e d

b y M in is t e r

  • Fr o m SA t o P CA - s u b je c t t o s e r v ice t a x
  • T o / fr o m SA t o DA - n o s e r v ice t a x
  • F r o m P CA ( o t h e r t h a n SA) t o FZ o r LM W - s u b je c t to

s e r v ice t a x

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SLIDE 20

ACCOUNTING

Is s u a n c e o f In v o ic e s

> M a n d a t o r y fo r r e g is t e r e d p e r s o n w h o p r o v id e s a n y t a x a b le s e r v ic e s . r H a r d c o p y o r e le c t r o n ic a lly > C o n t a in i n g p r e s c r ib e d p a r t i c u la r s r B a h a s a M e la y u o r E n g lis h

Credit Notes and Debit Notes

> o n ly r e g is t e r e d p e r s o n is a llo w e d t o is s u e a n d r e c e ip t > s h a ll m a k e a n a d ju s t m e n t in h is r e t u r n > s h a ll c o n t a in e d t h e p r e s c r ib e d p a r t i c u la r s .

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SLIDE 21

ACC OUNTING BASIS AND TAXABLE PERIOD

A c c o u n t i n g B a s is r Se r v ic e T a x ❖ P a y m e n t b a s is > S e r v ic e T a x r e q u ir e d t o b e a c c o u n t e d :- ❖ A t t h e t im e w h e n t h e p a y m e n t s is r e c e iv e d ❖ O n t h e d a y fo llo w in g p e r io d o f t w e lv e m o n t h w h e n a n y w h o le o r p a r t o f t h e p a y m e n t is n o t r e c e iv e d fr o m t h e d a t e o f t h e in v o ic e fo r t h e t a x a b le s e r v ic e p r o v id e d . T a x a b le P e r io d > B im o n t h ly b a s is ( e v e r y 2 m o n t h s ) r Sp e c ific b a s is

Filin g Fre q u e n cy Taxable Pe rio d s

Fir s t Ta xa b le P e r io d - Bim o n t h ly S e p t -O c t 2 0 1 8 Su b s e q u e n t Ta xa b le P e r io d No v-De c, Ja n -Fe b , Ma r -Ap r , Ma y-Ju n , Ju l-Au g, Se p -O c t ,...... Sp e cific Ba sis s u b je ct to a n a p p r o va l fr o m th e Dir e cto r Ge n e r a l 21

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SLIDE 22

BAD DEBTS

Bad Debts C laim

> Ca n b e c la im e d b y a R e g is t e r e d p e r s o n o r a Ce a s e d t o b e r e g is t e r e d p e r s o n . > Ca n b e c la im a ft e r 6 m o n t h s t o 6 y e a r s fr o m t h e d a t e o f s e r v ic e t a x w a s p a id > Su b je c t t o c o n d it io n s & s a t is fa c t io n o f t h e DG

Bad Debts Recovery

> H a s c la im e d a n d r e c e iv e d t h e r e fu n d > P a y m e n t r e c e iv e d fr o m t h e d e b t o r a ft e r b a d d e b t s c la im e d r R e p a y to DG in h is r e t u r n > R e p a y a c c o r d in g t o t h e fo r m u la

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SLIDE 23

RECORDS KEEPING

Records keeping:

^ 7 y e a r s ^ B a h a s a M e la y u o r E n g lis h > T o b e k e p t in M a la y s ia , e x c e p t p e r m it t e d b y D G t o k e p t o u t s id e M a la y s ia > Ca n b e k e p t in s o ft o r h a r d c o p y

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SLIDE 24

Miscellaneous

Other general provisions provided in the Proposed Sales Tax Act:

r r e fu n d o f o v e r p a id t a x r r e m is s io n r d r a w b a c k > p e n a lt y fo r la t e p a y m e n t o f t a x r o t h e r p e n a lt y fo r o ffe n c e s

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SLIDE 25

THANK YOU

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