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Indirect Taxation

RMCD releases public ruling on supply of commercial residential premise, 12 January 2018

The Royal Malaysian Customs Department (RMCD) has issued Public Ruling No. 01/2018 Supply of Commercial Residential Premise on 11 January 2018.

The PR clarifies whether the supply of commercial residential building or premise on commercial land will be classified as either a residential or commercial property.

Kindly visit the RMCD website for further details.

Source: RMCD website, 11 January 2018

STAMP DUTY (EXEMPTION) (NO.2) ORDER 2017 [P.U. (A) 408/2017]

This Exemption Order was gazetted on 26 December 2017. It took effect from 1 January 2018.

Definitions

The words which are defined in subparagraph 2(3) are the following:

 

 

Word Meaning
Exchange traded fund Has the same meaning assigned to it in the guidelines relating to exchange traded fund issued by the Securities Commission Malaysia (SCM) under the Capital Markets and Services Act 2007 (CMSA).
Structured warrant Has the meaning assigned to it in the guidelines relating to structured warrants issued by the SCM under the CMSA.

 

Exemption (subparagraph 2(1) )

A contract note executed for the sale and purchase transaction of structured warrant or exchange-traded fund approved by the SCM under the CMSA in Bursa Malaysia Securities Bhd. is exempted from stamp duty.  The exemption shall apply to the contract note executed on or after 1 January 2018 but not later than 31 December 2020.

To read the Order in full at the official website of the Attorney-General’s Chambers.

Amendments to GST regulations and orders, 04 January 2018

GST exemption on supply of management and maintenance services extended to developers

The Attorney-General Chambers has released the Goods and Services Tax (Exempt Supply) (Amendment) (No. 2) Order 2017 on 28 December 2017.

The abovementioned Order amends item 20, Schedule 2 to the Goods and Services Tax (Exempt Supply) Order 2014 to provide that the supply of services of the management and maintenance including recovery of group insurance cost, assessment tax and quit rent by developers is exempt from GST.

The abovementioned Order came into operation on 1 January 2018.

Removal of zero-rated status for reading materials

The Attorney-General Chambers has released the Goods and Services Tax (Zero-Rated Supply) (Amendment) (No. 3) Order 2017 on 28 December 2017.

The abovementioned Order amends the Goods and Services Tax (Zero-Rated Supply) Order 2014 as follows:

  • Appendix — deleted goods under tariff codes 4901.91.000, 4901.99.000, 4902.10.000 and 4902.90.000 from the list of goods determined as zero-rated supply.
  • Item 27 of Schedule 2 — Supply of online services for printed books, brochures, leaflets and similar printed matter and newspapers, journals and periodicals are zero-rated.

The abovementioned Order came into operation on 1 January 2018.

Amendments to GST Regulations 2014

The Attorney-General Chambers has released the Goods and Services Tax (Amendment) Regulations 2017 on 29 December 2017.

The abovementioned Order amends the Goods and Services Tax Regulations 2014 as follow:

  • Regulation 39(3)(c) — Consequential edit to remove reg 42 as said regulation has been deleted from Goods and Services Tax Regulations 2014.
  • Regulation 41(j) — Replaced “investment holding companies” with “companies whose principal activity is the holding of investment including properties, shares of other companies or loans”.
  • Regulation 49 — Consequential amendment to remove “local authority” following the amendment to the GST Act that all supplies made by local authorities will not be subjected to GST, ie out-of-scope supply.
  • Regulation 68 — Amended to clarify the persons and the types of forms to be used when applying for a refund.
  • Fourth Schedule — Amended to include Bagan Datuk as a district served by the Teluk Intan office.
  • Fifth Schedule — Amended item 15 Form GST-03 to say “Total Value of Other Supplies”.

The abovementioned Order came into operation on 1 January 2018, with the exception of the amendments to reg 49 which comes into operation on 1 October 2018.

Amendments to GST (Relief) Order 2014

The Attorney-General Chambers has released the Goods and Services Tax (Relief) (Amendment) (No. 2) Order 2017 on 29 December 2017. The abovementioned Order amends the Goods and Services Tax (Relief) Order 2014 as follows:

  • Paragraph 6(2) — Federal or State Government Department are required to complete and furnish a certificated as provided in the Third Schedule and also keep records or accounts of the goods imported or purchased and is available for inspection by any senior officer of goods and services tax at any time.
  • First Schedule—

– Deleted the definition of “private charitable entity”

– Insertion of item 3A — Local authority is given relief on all goods excluding petroleum, imported motor cars and land, subject to conditions.

– Insertion of item 16F — Relief is given on a supply of goods under a lease agreement used directly for petroleum and gas upstream operation activities sent from designated area to principal customs area and subsequently returned to the designated area, subject to conditions.

The abovementioned Order came into operation on 1 January 2018, with the exception of the insertion of item 3A which comes into operation on 1 October 2018.

Source: Federal Gazette Portal of the Attorney General’s Chambers, 29 December 2017

For PDF version;

CCT e-Circular_Issue 15 Jan 2018

 

 


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