The Malaysian government is planning to re-implement goods and services tax (GST); however, this decision is likely to be implemented in 2022 or 2023.
Hence, it is anticipated that the government isn’t looking for an immediate change. Furthermore, this might involve lowering the revenue rate or keeping it in a position where it is acceptable to the taxpayer.
The government would also take into account some other factors i.e zero-rating exemption, and right threshold, and more acceptable tax treatment.
Previously, one of the most prominent issues was the refunds, which suggests that the government might launch a refund scheme to facilitate the taxpayer.
This is going to take some time, so we shouldn’t accept an immediate implementation. However, decisions regarding such matters could be announced in Budget 2022 or 2023.
The GST has a wider base as compared to the currently implemented sales and service tax (SST). Therefore, it would allow the government to show some flexibility in terms of personal and corporate income tax rates. As a result, Malaysia would continue to be an attractive destination for local and foreign investors.
If you want to consult Goods and Services Tax (GST) services from one of the leading chartered accountants of Malaysia.
YH Tan & Associates PLT can help you by providing various tax services in Malaysia including GST planning, preparing, and registration to GST return, GST compliance review and appeal, and a range of GST consultation services.