Malaysia GST briefing on returns and payments
- May 9, 2015 | Richard Asquith
Malaysia introduced its new Goods & Services Tax on 1 April 2015 at a rate of 6%. Last week, it issued a range of briefings on the submission of returns and payments of taxes due.
Key points include:
- Companies with a turnover above MYS5m must file monthly GST returns; other companies file quarterly
- Returns are due on the last day of the month following the reporting period end
- For companies whose tax reporting calendar does not fall on month end, then filings are due 30 days after the period end
- Filings can be made: paper by post or in-person or via the Malaysian tax portal
- Any tax paid should be transferred to the Director General on the same day via the tax portal
Malaysian Goods & Services Tax 2015
The new Malaysian GST is set at 6%. It replaced the two Sales and Services Taxes which were effectively sales taxes with no right of deduction. This mean there was extensive double taxation through the production chain for companies. In addition, the government widened the tax base GST applied to so as to help stabilize tax revenues in the future.