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Following the Budget 2014 announcement by the Malaysian Prime Minister on 25 October 2013, it was announced that a Goods and Services Tax (GST) will be implemented on 1 April 2015 at the proposed rate of 6%. At the time of writing, the GST Bill 2009 (GST Bill) remains in a draft form and is still subject to further amendments and debate in Parliament. Pending the enactment of the GST Bill into legislation, the Royal Customs of Malaysia (Customs), the authority which will be administering GST has issued various draft guidelines relating to the GST. These draft guidelines are currently still in draft form and may be subject to amendments. A Client Alert entitled,Goods and Services Tax in Malaysia – Highlights from GST Bill and Draft Guidelines has been prepared by our Kuala Lumpur office. It seeks to highlight some of the more significant issues set out in the draft GST Bill and draft guidelines (issued to date) which may be of interest to most businesses. The following are some of the special GST schemes which will be introduced as part of the proposed GST regime which is currently provided under the GST Bill and draft guidelines:
In order to encourage the development of export-oriented industries, various facilities have been introduced by the government, namely the formation of licensed warehouses, free industrial and commercial zones, licensed manufacturing warehouses and free ports. To maintain this status quo, special provisions and rules will be introduced under the GST system for supplies made within the free ports (Langkawi, Labuan and Tioman) and free zones. For further information, please contact: Yvonne Beh, Partner, or Krystal Ng, Associate, Kuala Lumpur. |
