The Goods and Services Tax Act 2014 came into force in Malaysia on 1 April 2015, bringing with it some good news and some not-so-good news.
The GOOD News
The Goods and Services Tax (“GST”) will replace the Service Tax that was already in place in the service industry. Fortunately, the GST is 6% which is identical to the 6% Service Tax that was imposed on our professional fees previously.
The NOT-SO-GOOD News
The GST now imposes 6% on certain disbursements incurred as well. The previous Service Tax was not imposed on disbursements.
The GOOD News on the NOT-SO-GOOD News
As KASS always endeavours to keep administration costs low for clients, please rest assured that disbursements charged will be nominal. This is achieved by maintaining efficient systems, software and procedures in the Firm.
Where disbursements are tax-exempted, we will be clear on this in our invoices, ensuring that you are not paying more than necessary! For instance, legalization and notarization fees and fees paid to our IP Office are tax-exempted.