ASIA NEWS NETWORK

WE KNOW ASIA BETTER



» Business

Only 9,580 entities have registered for GST in Malaysia

Publication Date : 13-08-2014

 

Mandatory registrations under the Goods and Services Tax (GST) scheme are trickling in but those who have yet to register should do so as soon as possible.

As of Monday, 9,580 entities have registered, mostly comprising companies (8,401) and the rest including sole proprietors, professional bodies, associations, partnerships, limited liability partnerships, statutory bodies and individuals.

This is a slight increase in GST registrations compared to last month where statistics from the customs department reported that only 6,301 had signed up for the GST as of July 24.

“Of the total registrants, 119 were voluntary registrations from entities whose turnover is below 500,000 ringgit (US$156,649).

“The customs will be contacting those in its database of 63,000 companies that (currently) pay the service tax (to remind them to register for the GST).

“It is important for companies that qualify under the GST to register before the deadline so that they can claim their input tax,” deputy finance minister Chua Tee Yong said after opening a briefing on the GST for business association leaders here yesterday.

Under Section 184(2) of the GST Act, it is mandatory for companies and individual businesses with taxable supplies exceeding 500,000 ringgit ($156,649) annually to register for the GST.

The deadline for mandatory registrations is Dec 31, ahead of the scheduled implementation of the GST, which is expected to be rolled out on April 1.

The GST is a consumption tax which will be introduced at a rate of 6 per cent to replace the sales and service tax. It was announced by prime minister Najib Razak during the tabling of the Budget last year.

“We encourage those who wish to register to take advantage of the online registration process which offers a step-by-step guide.

“For greater convenience, I have also instructed (the Inland Revenue Board) to come up with a guideline for double tax deductions and secretariat and tax filing deductions, which will be announced in due time.

“The ruling for the accelerated capital allowances, which was gazetted last month, is also expected to be released soon,” said Chua.

 

Mobile Apps Newsletters ANN on You Tube