February 2016 – Newsletter 2/2016

Newsletter 2/2016

Dear Valued Clients,

Due to popular demand, we are organizing seminars on: –

  • Latest GST Developments and Issues
  • Budget 2016 Highlights
The GST seminar will explain current key developments to take note of. We will also provide ample time for Q&A.

We are charging a minimal fee on the Budget 2016 Highlights seminar for our current clients as thanksgiving for your continued support.

For this coming seminars, attendees that sign up for “Latest GST Developments and Issues” seminar before the early bird deadline will be entitled to a complimentary seat for “Budget 2016 Highlights”.

In this issue of our Newsletter, we are highlighting a common GST issue for individual property investors. For details, please refer to section 2 below.

Many thanks for your time spent on reading our newsletter.

Warmest regards,


(1) Upcoming Seminars on GST and Budget 2016

Latest GST Developments and Issues (21st March, 2016)
With GST implemented for over 9 months, several announcements, updates and clarifications has been made to address the practical issues faced by businesses in complying with GST regulations.

If you are having further queries on the changes, we will be discussing them in detail in our next seminar held on March 21st at Berjaya Waterfront Hotel.

Budget 2016 Highlights (22nd March, 2016)
Following our newsletter on Budget 2016 Summary and queries raised from our client, we have decided to organize a half-day seminar on Budget 2016 Highlights in order to explain the actual impacts of Budget 2016 to both individuals and businesses. If you are facing issues in understanding those changes in requirements, let us help you by joining our seminars!
Download Brochure and Registration Form Here!

(2) Individual supply of commercial property (updates to DG’s decision 4/2014 on 28/10/2015) 
  • Any individual who is not a GST registered person is treated as carrying out a business if he at any one time (i.e. any point of time in his lifetime commencing after the effective date) owns –
    • More than 2 commercial properties;
    • More than one acre of commercial land; OR
    • Commercial property or commercial land worth more than RM 2 million at market price.
  • Any individual mentioned above is liable to be registered as GST registered person if –
    • He has the intention to supply any of his commercial properties or commercial land; AND
    • The total value of such supply exceeds the prescribed threshold in 12 months periods.
Click on the link appended below to find out the details: –http://gst.customs.gov.my/en/rg/SiteAssets/Keputusan%20KP/DG/DGD%204%202014/ITEM%206.pdf
Our Analysis: Being treated as carrying business means if the intended sale of the property exceeds RM 500,000, the individual will have to register for GST. As a large proportion commercial property these days exceed RM 2million in market value these days, many investors will have to register for GST once they have the intention to sell. Being individually registered will mean any taxable supplies by the individual for business will also be subject to GST. Therefore, it is important to plan carefully before investing to optimize your GST and RPGT.
Case Study: Mr X owns a Shophouse with market value RM 800,000 and a factory with market value RM 3 million. Mr X agreed to sell the shophouse to Mr Y at RM 700,000 on 16/2/2016 and received 10% deposit. Mr X must register for GST by 28/3/2016 and will be effectively registered from 1/4/2016. The sale of the shophouse will be subject 6% GST. Mr X will have to start filing GST returns every quarter until he has successfully applied for deregistration.

Upcoming Events

March 21

Latest GST Developments and Issues

March 22

Budget 2016 Highlights

Important Announcement from Customs

In accordance with amendments made to Section 41 of the Goods and Services Tax Act 2014, with effect from 1/1/2016 failure to pay the amount of GST to be paid within the period specified will be penalized. Imposition of penalties will start for taxable period for which tax payments are due and payable on 31/1/2016.