SEMINAR GST SEMINAR GST FEDERATION OF LIVESTOCK FARMERS ASSOCIATION OF MALAYSIA. Tempat : Holiday 20 Inn November Villa, Subang 2014 Jaya

Transcription

1 SEMINAR GST SEMINAR GST FEDERATION OF LIVESTOCK FARMERS ASSOCIATION OF MALAYSIA Tarikh Holiday : 20 November Inn Villa, Shah 2014 Alam Tempat : Holiday 20 Inn November Villa, Subang 2014 Jaya AMINAH ABDUL MANAP Penolong Kanan Pengarah Kastam Bahagian GST Ibu Pejabat Kastam Diraja Malaysia Putrajaya 1 1

2 Presentation Contents Liability to Register Mandatory Registration Voluntary Registration Types of Registration Offences & Penalty 2

3 Liability to Register Any person who makes taxable supply of goods and services in Malaysia Registration is mandatory for businesses whose taxable turnover has exceeded the prescribed threshold Calculation of taxable turnover for registration is based on the total value of the taxable supplies for 12 months period 3

4 Liability to Register Liability to register is determined by Historical method, or Future method To apply for registration within 28 days from the end of the relevant month Effective date of registration will be on the 1 st day of the following month Application shall be made 3 mths before appointed date Pre-Registration before implementation of GST 4

5 Determination of taxable turnover Historical method Total value of taxable supplies of any month and the previous 11 months Future method or Total value of taxable supplies of any month and the next 11 months) 5

6 The determination of threshold Taxable Turnover: Includes Standard rated supplies Zero rated supplies (includes goods exported) Deemed supplies (private use of business assets, business gift > RM500, supply to connected person, etc) Disregarded supplies (supplies made between members of a group) Excludes Exempt supplies Disposal of capital assets Imported services Out of scope supplies Disregarded supplies (warehousing scheme & local customer ATMS) Supplies made within or between designated areas 6

7 Liability to Register Historical Method First day of 12 mths period Liable to Register Date of registration 1/9/10 1/8/11 31/8/11 1/10/11 28 Days 18/8/11 1/9/11 28/9/11 Reach Threshold preceding 11 Months + Current month Period to notify Last day to notify and apply for registration 7

8 Start business 15/5/11 Expected to reach threshold 16/8/11 Liability to Register Future Method 28 Days Date of registration 1/10/11 1/8/11 1/9/11 28/9/11 31/7/12 Liable to register Period to notify Last day to notify and apply for registration Current month + next 11 Months 8

9 Exemption From Registration Person making or intending to make zero rated supplies On request and upon approval of DG If any changes in the nature of supplies shall notify DG within 30 days 9

10 Degistration Deregistration To deregister if he ceases to fulfill the required conditions such as below threshold, cease making taxable supplies, cease business Mandatory deregistration when the business ceases or making taxable supplies To notify within 30 days after the cessation of business Required to account for and pay GST on assets and stocks on hand 10

11 Late Registration Penalty Late Registration Period (Days) Cumulative (RM) , , , , , , , , , , , ,000 Exceeding ,

12 Voluntary Registration Businesses below threshold or businesses which have yet to make or intend to make taxable supplies may apply for voluntary registration Benefits : Voluntary Registration To recover input tax for start-up costs To avoid giving the impression of small operation Once registered must remain in the system not less than 2 years 12

13 Types of registration Group registration Branch / Divisional Partnership Joint Venture Transfer of going concern (TOGC) Single Entity Society / Similar Organization 13

14 Group Registration Facility to allow : related companies to register under one registration number Limited to company to be members of the group 14

15 Group Registration Eligibility to be treated as member of a group if one company controls each of the other companies or any individual or individuals carrying on business in partnership controls all the companies Each company makes wholly taxable supplies Such company is not treated as a member of another group 15

16 Group Registration Each companies: Prior registration for individual company is necessary Must be registered individually in the form GST-01 Nominate a member to be a representative member The registration of a group in the name of the representative member in the form GST-02 16

17 Group Registration Where companies have been treated as a group; Supply between members is disregarded Any taxable supply of goods or services by or to a member of the group shall be treated as a supply by or to the representative member Representative member to account for the taxable supplies made between members of the group Each member is jointly and severally liable 17

18 Group Registration any business carried on by a member of the group shall be treated as carried by the group representative member The importation of any goods or services by any member shall be treated as being imported by the representative member Any tax paid or payable by a member shall be treated as paid or payable by the representative member of the group 18

19 Group Registration How to determine control: An individual/individuals can control a company if he/they would be the body s holding company A company can shall be taken to control another company if the first mentioned company holds - directly - indirectly through subsidiaries; or - together directly or indirectly from subsidiaries More than 50% of the issued share capital of the second mentioned company 19

20 Group Registration A 51% B 80% C 100% D B, C and D are members of a group provided that they are subsidiaries of A 20

21 Group Registration Holding of shares Not allowed if the shares are held: In a fiduciary capacity By virtue of provisions of debenture holding, trust deeds for securing debentures or money lending activities 21

22 Registration of Partnership : Of persons carrying on business in partnership shall be in the name of the firm The same persons can perform separate partnerships for separate businesses, and the registration will be in the name of the respective firms The calculation of taxable turnover is based on the value of all taxable supplies by the partnership. 22

23 Registration of Partnership : Culculation of taxable turnover: No. Partners Firm Business Taxable Turnover 1 Same persons Same name Same Combine 2 Same persons Same name Different Combine 3 Same persons Separate name Different Separate 23

24 Partnership Members of partnership: Shall be liable for the proportion of the partnership s liability on any tax due and payable on the supply of goods or services by the partnership 24

25 Divisional or Branch Registration The taxable person may apply for registration in the name of the branch or division Threshold will be based on the aggregate of the total taxable supplies of all the branches/divisions May apply to register its branches or divisions individually All branches or divisions must register although one branch or division is below threshold. 25

26 Divisional or Branch Registration To register individually subject to the following condition : The registered person and all branches or divisions are making wholly taxable supplies The registered person is not a member of a group Difficulty to account GST in single return Each of branch maintains independent system of accounting Each branch or division is separately identifiable by the nature of the business or its location Each branch has the same taxable period. 26

27 Joint Venture Application shall be made under section 69 of the GST Act in the form GST-02 joint venture (JV) Legally written agreement in petroleum upstream activities under PSC with Petronas All members must be taxable persons and registered individually Elect one of the venturers to be venture operator 27

28 Joint Venture Product output sharing according to share equity of each member in JV Venture operator shall maintain a separate account for JV Supply between venturers and venture operator for JV are disregarded Each venturer shall account and pay for tax on the supply made by him in respect of JV Each venturers is jointly and severally liable 28

29 Single Taxable Person DG has the power to direct any persons to be treated as a single taxable person Artificially separated shall be determined by financial link economic link organizational link 29

30 Transfer of Going Concern (TOGC) TOGC is a facility provided to both the transferor and transferee involved in the transfer or sale of business as a going concern TOGC may involve the transfer of a whole or part of a business as a going concern from a taxable person to another taxable person and carry on the same business 30

31 Conditions for TOGC Both the transferor and transferee must be registered under GST before the transfer of a business or part of a business is carried out The business transferred must be a going concern before and immediately after the transfer The transferee must use the transferred assets to continue with the same kind of business of the transferor If only part of the business is transferred, that part of the business must be able to operate on its own 31

32 Single Entity Dealing in securities or trading in future contract only A holder of a Capital Market Services License (stock broking companies) and holders of a Capital Market Services representative s license (remisiers) to be treated as a single entity Registration of the single entity shall be in the name of the holder of the Capital Market Services License and shall be the lead member of the single entity 32

33 Societies or Similar Organisation The registration in the name of society or similar organization Jointly and severally responsibility of Every member of holding office as president, chairman, treasurer, secretary or any similar member of committee 33

34 Thank You