What is GST?
Starting 1st April 2015, Malaysia will replace the existing sales and service tax
with the goods and services tax (GST) which was announced during the Budget 2014 presentation.
Why GST? In a nutshell, GST is part of the government's tax reform initiatives to improve the taxation system to be more efficient, transparent and business-friendly.
And part of the package includes the introductory rate of 6%, reduction of corporate income tax rate and more。
Will it affect my business?
The effect of GST to the current tax regime may vary from business to business.
This is due to its broad-based consumption tax nature imposed at every stage of the supply chain.
Thus, tax payment is made by intermediary parties from product manufacturer to distributors.