Tax Espresso

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Tax Espresso (August 2018)

The Tax Espresso is our monthly newsletter covering the latest tax updates.

In our August 2018 issue, we cover the following topics:

  1. Revised Real Property Gains Tax Guidelines; and
    Revised Green Technology Guidelines
  2. Amendments to PR No. 1/2014 ‘Withholding Tax on Special Classes Of Income’
  3. Income Tax (Accelerated Capital Allowance) (Information and Communication Technology Equipment) Rules 2018 [P.U.(A) 156/2018]
  4. Cititower Sdn Bhd v Collector of Stamp Duties (High Court)

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Publications

News Straits Times - How GST and SST work
20 July 2018

There has been plenty of talk recently in relation to the Goods and Services Tax (GST) and the Sales and Service Tax (SST) and what the impact of each is to the consumers. There is also plenty of information that has been made available to the public through various sources including the social media, in some instances adding to the confusion on how these taxes operate. This article was written by Senthuran Elalingam, Financial Services Indirect Tax Leader Asia Pacific.

Click here to read the full article.


The Edge - Sales and Services Tax — a new beginning
8 July 2018

In line with its pre-election promise to abolish the Goods and Services Tax (GST), the Pakatan Harapan government announced on May 16 that the consumption tax will be zero-rated from June 1. It also announced that the Sales and Services Tax (SST) will make a comeback on Sept 1. To date, there has been no official announcement on how SST will take shape. Will it take the form of the previous Sales Tax and Service Tax – two different taxes – or will it be an enhanced version of the two? Or will it be a hybrid tax system? This article was written by Tan Eng Yew, Head of Indirect Tax, Deloitte.

Click here to read the full article.

Media interviews

The Edge – Previous tax regime gets a facelift
30 July 2018

If anyone is expecting to see significant changes in the Sales and Services Tax (SST) that will come into effect on Sept 1, they are likely to be underwhelmed by the proposed framework. It is more or less similar to what was previously implemented, but with some changes, say tax analysts. While the changes are not drastic, some things have been made much simpler this time around, they say. Deloitte Malaysia’s Senthuran Elalingam says businesses that will be impacted will appreciate the fact that the ability to file electronically will continue under the new SST. The scope is definitely broader than the previous sales tax and service tax, adds Senthuran, who is Financial Services Indirect Tax Leader Asia Pacific at Deloitte.

Click here to read the full interview.


The Edge Property.my – Proposed SST ‘more or less similar’ to what was previously implemented, say analysts
21 July 2018


The proposed and impending Sales and Services Tax (SST) is more or less similar to what was previously implemented, but with some changes, tax analysts told The Edge recently. Deloitte Malaysia’s Senthuran Elalingam, Financial Services Indirect Tax Leader Asia Pacific told The Edge that businesses will appreciate the fact that electronic filing will continue under the new SST. Senthuran also said that the scope is “definitely broader” than the previous sales tax and service tax.

Click here to read the full interview.


New Straits Times – ‘Keep receipts as evidence’
19 July 2018

Consumer groups have advised the public to keep receipts of purchases to monitor any significant changes in prices when the Sales and Services Tax (SST) is reintroduced. Deloitte Malaysia Financial Services Indirect Tax Leader Senthuran Elalingam said GST had a self-policing mechanism through the use of tax invoices and availability for businesses to claim credits by obtaining them. “SST does not have this and only applies at a single stage. It can be open to abuse as businesses could either under-declare the value of sales or not report sales, which will result in a loss of tax revenue.”

Click here to read the full interview.


TV3 – The reintroduction of SST is expected to incur minor price hike
17 July 2018


The implementation of the Sales and Services Tax (SST) at 10% and 6% respectively is expected to incur a minor price hike in goods and services offered in the country. Sharing his views on this is Deloitte Malaysia’s GST and Customs Leader, Tan Eng Yew.

Click here to watch the full interview.


China Press – Proper law enforcement needed, says tax experts, or both government and people will lose
17 July 2018

The government’s 10% sales tax and 6% service tax may increase the tax burden on some merchants because under the SST, they will not be able to claim tax rebates, unlike during the GST era. Tham Lih Jiun, Executive Director and Partner of Deloitte Tax Services, pointed out that foreign-invested or newly established companies that entered the Malaysian market in the GST era, that is, after April 2015, will have limited knowledge of the SST system. In terms of cost of project budget, there may be misunderstandings about claiming tax rebates under the SST.

Click here to read the full interview in Mandarin.


The Edge Markets – Deloitte still feeling the energy after 12 years
16 July 2018

This is the 12th consecutive year that Deloitte Malaysia is entering The Edge Kuala Lumpur Rat Race and the team is as energised as ever. Driven by Deloitte’s aim to make a difference in society, the company says its people are always keen to do their part to help the disadvantaged, and what better way to do it than by taking part in a healthy activity like running. Gooi Yong Wei, Deloitte Malaysia’s Tax Executive Director, who is running in the CEO category, says the runners take the inevitable pressure in good part.

Click here to read the full interview.

Upcoming event

(Ipoh) SST Update Seminar

20 August 2018

The much anticipated Sales Tax and Service Tax (“SST”) bills were introduced before the Malaysian House of Representatives or “Dewan Rakyat” for its first reading before the Parliament on 1 August 2018.

With the recent news of the Royal Malaysian Customs Department (RMCD) beginning to issue SST registration letters, it appears that the implementation of the SST is imminent.

Within this small window, businesses will need to fully understand how the SST will impact them financially and operationally. It is vital to ensure a smooth transition from GST to SST and to integrate the taxes operationally, with minimal disruption to business.

In light of the above, our Indirect Tax Academy has tailored a seminar to assist you in charting out your SST readiness plans, address potential challenges and share insights on the recently released SST bills.

For more information regarding the upcoming event in Ipoh, kindly contact Jeannie Khor at +605 254 0288 / jkhor@deloitte.com

Past events

  1. (Penang) Deloitte International Tax Symposium 2018 (19 July 2018)
  2. International Trade and Regional Economic Situation Forum by Deloitte Chinese Services Group: Dialogue with Xu Sitao, Deloitte China Chief Economist (20 July 2018)
  3. Indirect Tax Academy: The Return of SST Seminar
    (25 - 26 July 2018, 1 August 2018 - Held in Korean)

Visit this page to view details about each past event.

Contact our Tax team if you need assistance.

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