Wednesday, January 7, 2015

Implementation of Value-Added Tax (i.e. Goods and Service Tax) in Malaysia

Malaysia is going to roll out GST with effect from 1 April 2015 onwards. The entire business scene are likely to be affected directly or indirectly. If the Group company owns any branch or subsidiary in Malaysia, it is important to ensure that the management is already looking at managing this smooth roll out.

Generally, we expect the compliance costs to increase and there could be costs incurred /to be incurred with regard to the roll out of GST.

Based on our understanding, there have been a lot of discussion on the GST - which is not surprised. However, there are also expression of confusion by business in general on certain items - for instance, rental income earned on investment property.

From our point of view, whenever there is a change, the change need to be managed - hence, the company's process in place to manage the change is important - not only on GST but on all other matters as well.

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