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Malaysia GST Bill gets green light

  • May 26, 2014 | Richard Asquith

Malaysia GST Bill gets green light

The new Malaysian Goods & Services Tax Bill has been ratified by both houses of the country’s parliament, and will shortly be gazetted. It will come into force on 1 April 2015 at 6%.

To support the introduction of the new tax, which replaces the existing Sales Tax, there is a packed programme of initiatives. These include:

  • Customs training for small and medium sized enterprises
  • Ministry of Finance training events
  • Change over courses for current Sales Tax registered businesses

Most of the country’s neighbors have higher rates: Thailand 7%; Philippines 12%; Vietnam 10%; and China VAT 17%. The plan for the new GST is to replace the existing Government Sales Tax 10% on goods and 6% Service Tax on many services. The new GST is seen as extending the tax base, and making the fiscal policy fairer and more transparent for consumers and businesses alike.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.