Almost two years into the Goods and Services Tax (GST) that was implemented in Malaysia in 2015 the Royal Malaysian Customs Department has been conducting audits on companies to ensure compliance.
AMCHAM members were given a short briefing by Lee Hishammuddin Allen & Gledhill’s team of lawyers on the GST Act, GST documentation; legal remedies.
They emphasized on the importance of maintaining proper records of company’s derived transaction value of goods and services, as the GST is imposed on goods and services at every production and distribution stage in the supply chain. Likewise, the relevant authorities are also required to publish all the procedures and to ensure all forms are accessible to the public.
They also informed members that The National Revenue Recovery Enforcement Team (NRRET) has been set-up with the objective to recover the Government’s revenue and has the authority to raid companies. Companies were advised to co-operate with them and seek the assistance of a legal counsel if necessary.
What is GST? It is a fixed rate tax of 6% that was introduced to replace the sales and services tax which ranged between 5% - 10%.
The Spotlight Session ended with questions from the floor. AMCHAM would like to take this opportunity to thank the speakers, Mr. S. Saravana Kumar, Mr. Jason Tan and Ms. Ivy Ling of Lee Hishammuddin Allen & Gledhill for an informative session.