SST IMPLEMENTATION BRIEFING SESSION PROPOSED SALES TAX - - PowerPoint PPT Presentation

SST IMPLEMENTATION BRIEFING SESSION

PROPOSED SALES TAX IMPLEMENTATION MODEL

Royal Malaysian Customs Department

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CO N T E N T O F B R IE F IN G

Proposed Legislation Scope And Charge Sales Tax Mechanism Interpretation Of Manufacture Taxable Person Taxable Goods Rate Of Tax Sales Tax Valuation Taxable Services

• Registration
• Returns / Payment
• Exemption & Facilities
• Special Rules
• Accounting
• Miscellaneous

P r o p o s e d Sa le s T a x Le g is la t io n

A c t

• S a l e s T a x A c t 2 0 1 8

R e g u la t i o n s

• Sa le s Tax Re gu la tio n s 2 0 1 8
• Sa le s Tax ( Cu s to m s Ru lin g) Re gu la tio n s 2 0 1 8
• Sa le s Tax ( Ru le s o f Va lu atio n ) Re gu la tio n s 2 0 1 8
• Sa le s Tax ( Co m p o u n d in g o f Offe n ce s ) Re gu la tio n s 2 0 1 8

O r d e r

• Sales Tax
• Sales Tax
• Sales Tax
• Sales Tax
• Sales Tax
• Sales Tax
• Sales Tax
• Sales Tax

(Amount Of Sale Value Of Taxable Goods Manufactured) Order 2018 (Rates Of Tax) 2018 (Goods Exempted From Sales Tax) Order 2018 (Person Exem pted From Sales Tax) Order 2018 (Exemption From Registration) Order 2018 (Imposition o f Tax In Respect Of Designated Areas) Order 2018 (Imposition Of Tax In Respect Of Special Areas) Order 2018 (Appointment o f Date o f Coming Into Operation) Order 2018

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S CO P E A N D CH A R G E

Sales ta x is a ta x ch a r ge d a n d le vie d - ■

• n ta xa b le go o d s m a n u fa ctu r e d in Ma la ysia b y a ta xa b le p e r so n

an d sold , u se d or d isp o se d b y h im ; ■

• n ta xa b le go o d s im p o r te d in to Ma laysia.

Sales ta x is n o t ch a r ge d on: ■ go o d s liste d u n d e r Pr o p o se d Sa les Tax (Good s Exe m p te d Fr om Sales Tax) Or d er ; > ce r ta in m a n u fa ctu r in g a ctivitie s ar e e xe m p te d b y Min iste r o f Fin a n ce th r o u gh Pr o p o se d Sa les Tax (Exe m p tio n Fr om Re gistr ation ) Order.

No t e : Malaysia excludes designated area and special area

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H O W S A LE S T A X W O R K S ?

M a n u fa c t u r e r

W h o le s a le r Re t a ile r Co n s u m e r

H

Go v t co lle ct s t a x a t t h e m a n u fa ct u r e r 's le ve l o n ly ______________

IN T E R P R E T A T IO N

• M a n u fa c t u r e d e fin e s a s a c o n v e r s i o n o f m a t e r i a ls b y

m a n u a l o r m e c h a n i c a l m e a n s in t o a n e w p r o d u c t b y c h a n g i n g t h e s iz e , s h a p e , c o m p o s i t i o n , n a t u r e o r q u a li t y

• f s u c h m a t e r i a ls a n d in clu d e s th e a s s e m b ly o f p a r t s in to a

p ie ce o f m a ch in e r y o r o t h e r p r o d u ct s . Ho w e ve r , m a n u fa ct u r e d o e s n o t in clu d e th e in s t a lla t io n o f m a ch in e r y o r e q u ip m e n t fo r th e p u r p o s e o f co n s t r u ct io n .

• In

r e la t io n to p e t r o le u m , a n y p r o ce s s

• f

s e p a r a t io n , p u r ifica t io n , co n v e r s io n , r e fin in g a n d b le n d in g.

T A X A B LE P E R S O N

T a x a b le p e r s o n is a p e r s o n w h o m a n u fa c t u r e s t a x a b le g o o d s a n d is:

• lia b le to be r e gis t e r e d ;
• r e a ch e d s a le s t h r e s h o ld

r M a n u fa c t u r e r - RM 5 0 0 ,0 0 0 .0 0 > Su b -c o n t r a c t o r - RM 5 0 0 ,0 0 0 .0 0

• r e g is t e r e d u n d e r Sa le s T a x Le g is la t io n .
• m a n d a t o r ily r e g is t e r e d
• v o lu n t a r ily r e g is t e r e d

T AXAB LE GOOD S AN D RAT ES OF T AX

Go o d s w h ic h a r e n o t e xe m p t e d b y M in is t e r o f F in a n ce t h r o u g h P r o p o s e d Sa le s Ta x E x e m p t io n Or d e r w ill b e ch a r g e d s a le s t a x a t v a r io u s r a t e s p r e s c r ib e d . Sa le s t a x is a n a d v a l o r e m t a x a n d d iffe r e n t r a t e s a p p ly ( P r o p o s e d 5% a n d 1 0 % ) b a s e d o n g r o u p o f t a x a b le g o o d s a s in d ica t e d in t h e p r o v is io n . Sa le s t a x fo r p e t r o le u m is ch a r g e d o n a s p e c i fi c r ' ’ ‘ ’ ' d iffe r e n t fr o m o t h e r t a x a b le g o o d s .

S A LE S T A X V A LU A T IO N

Sa le s v a lu e o f lo c a lly m a n u fa c t u r e d g o o d s w ill b e d e t e r m in e d b a s e d o n P r o p o s e d Sa le s Ta x ( Ru le s o f Va lu a t io n ) R e g u la t io n s 2 0 1 8 . Sa le s v a lu e o f t a x a b le g o o d im p o r t e d in t o M a la y s ia r e p r e s e n t t h e s u m o f t h e fo llo w in g s :

• Th e cu s to m s va lu e ;
• T h e a m o u n t o f c u s t o m s d u t y p a id o r t o b e p a id ;
• T h e a m o u n t o f e xcis e d u t y p a id o r t o b e p a id .

r - X

C --

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SA LES T A X R EGIST R A T IO N

Lia b ility To Re g is te r

• Taxable goods m anufacturers are required / liable to be registered

when;

• SALES VALUE OF TAXABLE GOODS has exceeded RM500,000 for

12 months period;

• Manufacturers who carry out sub-contract w ork on taxable goods

where the VALUE of w ork perform ed exceeds RM500,000 for 12 months period.

• Taxable goods belong to:

❖ Register ed manufacturer, non registered m anufacturer and m anufacturer in special area (FIZ and LMW).

No te : Re gis t e r e d P e r s o n w ill b e k n o w n a s Re gis t e r e d M a n u fa ct u r e r s fppt.com

SA LES T A X R EGIST R A T IO N

Oth e r s R e g is tr a tio n

Vo lu n t a r y r e g is t r a t io n

• Ta xa b le go o d s - b e lo w t h r e s h o ld .
• P e r s o n s w h o a r e e xe m p t e d fr o m r e gis tr a t io n .

SA LES T A X R EGIST R A T IO N

D e te r m in a t io n o f T u r n o v e r

• Ma n u fa ctu r e r s sh o u ld ca lcu la te th e sa le s va lu e o f ta xa b le go o d s

for a p e r io d o f 12 m o n th s u sin g th e fo llo w in g m e th o d s: i. H is t o r ica l M e t h o d ; Th e to ta l va lu e o f ta xa b le go o d s in th a t m o n th a n d th e 11 m o n th s im m e d ia te ly p r e ce d in g th e m on th ;

• ii. Fu t u r e M e t h o d ;

—° Th e to ta l va lu e o f ta xa b le go o d s in th a t m o n t m o n th s im m e d ia te ly su cce e d in g th e m o n th .

SA LES T A X R EGIST R A T IO N

Ex e m p tio n fr o m Re g is tr a tio n

• Ma n u fa ctu r e r o f n on ta xa b le go o d s *
• .
• Ma n u fa ctu r e r b e lo w th r e sh o ld .
• Su b -co n tr a cto r m a n u fa ctu r e r b e lo w th r e sh o ld .
• Ma n u fa ctu r in g

a ctivitie s th a t h ave b e e n e xe m p te d fr o m r e gistr a tio n . E.g.:

• Ta ilor in g
• In sta lla tio n in co r p o r a tio n o f go o d s in to b u ild in g
• Jew eller , o p ticia n

* N o t e ligib le fo r v o lu n t a r y r e gis t r a t io n

SA LES T A X R EGIST R A T IO N

T r a n s itio n a l Re g is tr a tio n

M a n u fa c t u r e r w h o is lia b le t o b e r e g is t e r e d is r e q u ir e d t o r e g is t e r b e fo r e 1 st Se p t e m b e r 2 0 1 8 .

• R e g is t r a t io n c o m m e n c e m e n t d a t e w ill b e o n 1 st Se p t e m b e r 2 0 1 8 .

A u t o m a t ic R e g is t r a t io n

• M a n u fa c t u r e r s w h o a r e GST R e g is t e r e d P e r s o n s w h ic h h a v e b e e n

id e n t ifie d a n d fu lfille d t h e r e q u ir e d c r it e r ia w ill b e r e g is t e r e d a u t o m a t ic a lly a s R e g is t e r e d M a n u fa c t u r e r u n d e r Sa le s T a x.

• R e g is t e r e d M a n u fa c t u r e r n e e d t o c h a r g e t a x b e g in n in g 1 st Se p t e m b e r

2 0 1 8 . P e r s o n s N o t R e g i s t e r e d A u t o m a t i c a l l y

• GST r e g is t e r e d p e r s o n w h o

fu lfille d t h e r e q u ir e d c r it e r ia t o b e r e g is t e r e d b u t w e r e n o t r e g is t e r e d b y 1 st Se p t e m b e r 2 0 1 8 n e e d to a p p ly fo r r e g is t r a t io n w it h in 3 0 d a y s fr o m t h e c o m m e n c e m e n t d a t e .

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R E T U R N

• R e g is t e r e d m a n u fa c t u r e r h a s t o d e c la r e SST 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 in g t o t h e t a x a b le p e r io d .

• SST r e t u r n h a s 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
• f t h e fo llo w in 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 .
• SST R e t u r n h a s to b e s u b m it t e d r e g a r d le s s o f 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 n o t .

• SST R e t u r n h a s to b e s u b m it t e d e le c t r o n ic a lly

SST P r o ce s s in g Ce n t r e .

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P A Y M E N T

• P a y m e n t o f SST h a s to b e m a d e

■ E le ct r o n ica lly ; o r ■ By ch e q u e , b a n k d r a ft a n d p o s t e d t o SST P r o c e s s in g Ce n t r e .

• La 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 a le s 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 co 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 No 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

■ ■ ■

E X E M P T IO N A N D F A CILIT IE S

Exe m p t io n fr o m Sa le s Ta x:

• Goo d s - Pr o p o se d Sa le s Tax (Good s Exe m p te d Fr om Sa le s Tax) Or d e r 2 0 1 8
• E.g.

Live a n im a ls, u n p r o ce s se d food , ve ge ta b le s, m e d icin e s, m a ch in er y, ch e m ica ls, etc. (List o f P r o p o se d Goo d s Exe m p te d Fr om Sa les Tax)

• Pe r son - P r o p o se d Sa les Tax (Pe r son Exe m p te d Fr om Sales Tax) Or d e r 2 0 1 8
• Sch e d u le A: class o f p e r so n , e.g. Ru le r o f States, Fed er al or State Go ve r n m e n t

De p a r tm e n t, Lo ca l Au th o r ity, In la n d Cle a r a n ce De p o t, Du ty Fr ee Sh op

• Sch e d u le B: Ma n u fa ctu r e r o f sp e cific n on ta xa b le go o d s - e xe m p tion o f ta x on

th e a cq u isitio n o f r a w m a te r ia ls, co m p o n e n ts, p a ck a gin g to b e u se d in m a n u fa ctu r in g activitie s

• Sch e d u le C: Re giste r e d Ma n u fa ctu r e r - e xe m p tion o f ta x on th e a cq u isitio n o f

r a w m a te r ia ls, co m p o n e n ts, p a ck a gin g to b e u se d in m a n u fa ctu r in g o f ta xa b le ^ goo d s (r e p la cin g CJ5, CJ5 A, CJ5 B)

Ex e m p tio n fr o m Re g is tr a tio n :

• Ma n u fa ctu r in g a ctivitie s e xe m p te d fr o m r e gistr a tio n r e ga r d le ss o f tu r n o ve r

> E.g. Tailor, Jew eler , Op ticia n , e n gr a vin g, va n is h in g ta b le top , etc. 17

SP ECIA L R U LES

T r e a t m e n t in D e s ig n a te d Ar e a ( D A)

D e s ig n a te d Ar e a ( n o t d e e m e d o u ts id e Ma la y s ia )

La b u a n , La n gka w i an d Tio m a n

M a n u fa c t u r in g a c tiv itie s in D A

Pr o p o se d Sales Tax Act d oes n o t a p p ly to DA e xce p t for p e tr o le u m

Im p o r t a t io n in to D A ( w o rld to DA)

Exe m p tio n fr o m Sales Tax e xce p t:

• La n gka w i:

Im p o r ta tio n

• f

m a r b le , p e tr o le u m an d a n ch o vies

• Tio m a n : Im p o r ta tio n o f p e tr o le u m a n d m o to r ve h icle s
• La b u a n : Im p o r ta tio n o f p e tr o le u m

Re m o v a l o f Go o d s

• Fr om PCA to DA - d e e m e d e xp o r t, n o sa le s ta x
• Fr om DA to PCA - d e e m e d im p o r t, s u b je ct to sa le s ta x
• To/ fr o m DA to DA - n o sa le s ta x
• To/ fr o m DA to SA* - n o sa le s ta x

* Sp e cia l Ar e a = Fr ee Zon e , Lice n s e d W a r eh o u se , Lice n se d Ma n u fa ctu r in g W a r e h o u se an d Jo in t De ve lop m e n t Ar ea (JDA) ** Tr e a tm e n t for se r vice s w ill b e d iscu s se d in Se r vice Tax b r ie fin g

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SP ECIA L R U LES

T r e a t m e n t in Sp e c ia l Ar e a ( SA)

S p e c i a l A r e a ( n o t d e e m e d o u t s i d e M a la y s i 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 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)

M a n u fa c t u r i n g a c t i v i t i e s in SA

P r o p o s e d Sa le s Ta x Ac t d o e s n o t a p p ly to SA

Im p o r t a t i o n in t o SA ( w o r ld t o SA)

Ge n e r a lly n o t s u b je ct to Sa le s Ta x e xce p t fo r go o d s in t h e fr e e zo n e w h ich m a y b e s u b je ct e d to Sa le s Ta x p r o v id e d in t h e P r o p o s e d Sp e cia l Ar e a Or d e r

R e m o v a l o f Go o d s

• Fr o m P CA to SA - d e e m e d e xp o r t , n o s a le s t a x
• Fr o m SA to P CA - d e e m e d im p o r t , s u b je ct to s a le s

t a x

• T o / fr o m SA to SA - n o s a le s t a x
• T o / fr o m SA to DA - n o s a le s t a x

** T r e a tm e n t fo r s e r v ic e s w ill b e d is c u s s e d in Se r v ic e Ta x b r ie fin g

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A CCO U N T IN G

Is s u a n ce o f In v o ice s

> M a n d a t o r y fo r r e g is t e r e d m a n u fa c t u r e r w h o s e lls t a xa b le g o o d s .

r Har d co p y or e le ct r o n ica lly

> Co n t a in in g p r e s c r ib e d p a r t ic u la r s r Ba h a s a M e la y u o r En glis h

Cre d it No te s a n d D e b it No te s

> r e g is t e r e d m a n u fa c t u r e r is a llo w e d t o is s u e > 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 t h e p r e s c r ib e d p a r t ic u la r s

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ACCOU N T IN G B ASIS AN D T AXAB LE P ERIOD

A c c o u n t i n g B a s i s

r Sa le s Ta x ❖ Ac c r u a l b a s is > Sa le s 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 g o o d s a r e s o ld , d is p o s e d o r fir s t u s e d

T a x a b le P e r i o d

> B im o n t h ly b a s is ( e v e r y 2 m o n t h s ) Sp e c ific b a s is

Filin g Fre q u e n cy Taxab le Pe rio d

Fir s t Ta x a b le P e rio d - B im o n th ly S e p t - O c t 2 0 1 8 Su b s e q u e n t Ta x a b le P e rio d N o v -D e c , Ja n -Fe b , Ma r-Ap r, M a y -Ju n , Ju l-Au g , S e p - O c t ,...... Sp e c ific B a s is s u b je c t to a n a p p ro v a l fro m th e D ir e c to r Ge n e ra l

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B A D D E B T S

B a d D e b t s Cl a i m

> Can b e cla im e d b y a r e giste r e d m a n u fa ctu r e r or a p e r so n w h o ce a se d to b e r e giste r e d m a n u fa ctu r e r . > Sh a ll cla im w ith in 6 ye a r s fr om th e d ate th e ta xa b le go o d s is sold > Su b je ct to co n d itio n s & sa tisfa ctio n o f th e DG > May cla im a cco r d in g to th e fo r m u la

B a d D e b t s R e c o v e r y

> Has cla im e d an d r e ce ive d th e sa le s ta x r e fu n d > Pa ym e n t r e ce ive d fr o m th e d e b to r a fte r b a d d e b ts cla im e d r Rep ay to DG in his r etu r n > Re p ay a cco r d in g to th e fo r m u la

m

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R E CO R D S K E E P IN G

R e c o r d s k e e p in g :

^ 7 ye a r s ^ Ba h a s a Me la yu o r En glish > To b e k e p t in Ma la ys ia , e xce p t p e r m it t e d b y DG to k e p t o u t s id e M a la ys ia > Ca n b e k e p t in s o ft o r h a r d co p y

Miscellaneous

O t h e r g e n e r a l p r o v i s i o n s p r o v id e d in t h e P r o p o s e d Sa le s T a x A c t :

^ r e m is s io n ^ r e fu n d o f o ve r p a id ta x ^ d r a w b a ck > p e n a lt y fo r la t e p a y m e n t o f t a x > o t h e r p e n a lt y fo r o ffe n ce s

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P r o p o s e d R e m is s io n o f T a x

■ M in is te r m a y r e m it

• Th e w h o le or a n y p a r t o f sa le t a x d u e a n d p a ya b le

■ D ir e c t o r Ge n e r a l m a y r e m it

• Th e w h o le or a n y p a r t o f
• Su r ch a r ge
• Pe n a lty
• Fee
• Oth e r m o n e y p a ya b le u n d e r th e Act

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P r o p o s e d D r a w b a c k & R e fu n d fa c ilit ie s

■ D ra w b a c k :

• Fu ll a m o u n t o f sa le s t a x p a id in r e s p e ct o f ta xa b le go o d s

s u b se q u e n tly e xp o r te d

• Su b je ct to co n d itio n s im p o s e d
• A p p lic a t io n m a d e v ia p r e s c r ib e d fo r m

■ Re fu n d

• Ove r p a id or Er r o n e o u sly p a id t a x
• Su b je ct to co n d itio n s im p o s e d
• Ap p lica tio n m a d e via p r e scr ib e d fo r m

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P r o p o s e d P e n a lt y fo r La t e P a y m e n t

■ La te P a y m e n t P e n a lt y

• Ma xim u m o f 4 0 %

Payment due date

Penalty rate

• --------------- >

0% 10% +1 5 % +1 5 % 30 30 30 days days days

Q

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P r o p o s e d P e n a lt y o n o ffe n c e s

■ Ev a s io n o f Sa le s Ta x

• 1 st o ffe n ce - e it h e r o r b o t h

✓ Fin e ■ M in im u m 1 0 X Sa le s Ta x a m o u n t ■ M a x im u m 2 0 X Sa le s Ta x a m o u n t ✓ Im p r i s o n m e n t n o t e x c e e d in g 5 y e a r s 28 2 nd o ffe n ce - e it h e r o r b o t h ✓ Fin e ■ M in im u m 2 0 X Sa le s Ta x a m o u n t ■ M a x im u m 4 0 X Sa le s Ta x a m o u n t ✓ Im p r is o n m e n t n o t e xc e e d in g 7 y e a r s Co m p o u n d b y Cu s t o m s - n o t e xc e e d in g 5 0 % o f m a x im u m fppt.com

2liimk

D o y o u h a v e a n y q u e s t i o n

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