Registering your Business

a) SALES TAX

• Taxable goods manufacturers are required / liable to be registered when;
• SALES VALUE OF TAXABLE GOODS has exceeded RM500,000 for 12 months period;

• Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
• Taxable goods belong to:
• Registered manufacturer, non-registered manufacturer and manufacturer in special area (FIZ and LMW).

• Note: Registered Person will be known as Registered Manufacturers

• Voluntary registration
• Taxable goods – below threshold.
• Persons who are exempted from registration

• Determination of Turnover
• Manufacturers should calculate the sales value of taxable goods for a period of 12 months using the following methods:
• Historical Method;
• The total value of taxable goods in that month and the 11 months immediately preceding the month;
• Future Method;
• The total value of taxable goods in that month and the 11 months immediately succeeding the month.

• Exemption from Registration
• Manufacturer of non-taxable goods*.
• Manufacturer below threshold
• Sub-contractor manufacturer below threshold
• Manufacturing activities that have been exempted from registration. E.g.:
• Tailoring
• Installation incorporation of goods into building
• Jeweler, optician
• * Not eligible for voluntary registration

• Transitional Registration
• Manufacturer who is liable to be registered is required to register before 1st September 2018
• Registration commencement date will be on 1st September 2018

• Automatic Registration
• Manufacturers who are GST Registered Persons which have been identified and fulfilled the required criteria will be registered automatically as Registered Manufacturer under Sales Tax.
• Registered Manufacturer need to charge tax beginning 1st September 2018

• Persons Not Registered Automatically
• GST registered person who fulfilled the required criteria to be registered but were not registered by 1st September 2018 need to apply for registration within 30 days from the commencement date.

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b) SERVICE TAX

• Eligible from Registration

• 

• The services provided by the service provider from Group G number 1-8 excludes the said services if provided in connection with:

1. goods or land outside Malaysia or where the subject matter relates to a country outside Malaysia; or
2. any statutory fees paid to the government or statutory body

• Rate of tax
• 6% (1 Sept 2018 - 29 Feb 2024)
• 8% (mulai 1 Mac 2024) kecuali F&B, Parking, Logistik & Telekomunikasi - 6%
• Provision of credit card or charge card services
• A specific rate of tax of RM 25 is imposed upon issuance of principal or supplementary card and every subsequent year or part thereof

• Determination of Turnover
• Mandatory
• Any person providing taxable services is liable to be registered if –
• in the case the total amount of taxable services is prescribed, the total amount of taxable services provided by him in 12 months exceed threshold and the liability to be registered is at the following time whichever is the earlier:
• Historical Method;
• The total value of taxable goods in that month and the 11 months immediately preceding the month;
• Future Method;
• The total value of taxable goods in that month and the 11 months immediately succeeding the month.
• In the case no amount of taxable services is prescribed, the liability to be registered is on the date of the commencement of the business.

• Voluntary registration -
• By application;
• Provide taxable services;
• The total amount of taxable services provided by him in 12 months is below threshold.
• Subject to conditions determine by DG

• Branch Registration is allowed for Service Tax.

• Group Registration is not applicable

• Transitional Registration
• Taxable Service Provider who is liable to be registered is required to register before 1st September 2018
• Registration effective date will be on 1st September 2018

• Automatic Registration on 1st September 2018
• Taxable Service Provider who are GST Registered Persons which have been identified and fulfilled the required criteria will be registered automatically as Registered Person under Service Tax.
• Registration Person need to charge tax beginning 1st September 2018

• Persons Not Registered Automatically
• GST registered person who fulfilled the required criteria to be registered but were not registered by 1st September 2018 need to apply for registration within 30 days from the effective date.

• List of Type of Taxable Services and Threshold