GST Frequently Asked Questions (FAQs) Section A : General Information on GST. 1. What is a GST?

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1 Section A : General Information on GST 1. What is a GST? A Goods and Services Tax (GST) is a consumption tax based on the value-added concept. GST is charged on any taxable supply of goods and services made in the course or furtherance of any business by a taxable person in Malaysia. GST is also charged and levied on the importation of goods and services into Malaysia. 2. What is the rate of GST that will be imposed? 6% 3. Are all goods and services subject to GST? Not all goods and services will be subjected to GST. Certain basic food and amenities are free from tax, i.e. zero rated. In addition, certain supply of goods and services such as financial services and healthcare services are determined by the Government as exempt supply. For more information, please refer to the following: i) Goods and Services Tax (Zero-rated Supply) Order %20Perintah%20CBP%20(Pembekalan%20Berkadar%20Sifar)% pdf ii) Goods and Services Tax (Exempt Supply) Order perintah%20cukai%20barang%20dan%20perkhidmatan%20(pembekalan%20dikecualikan)% pdf 4. Do all businesses need to be registered under GST? Any person who makes a taxable supply for business purposes and the taxable turnover of that supply for a period of 12 months or less exceeds the threshold of RM500, 000 is required to be registered for GST. However, business with taxable turnover of RM500, 000 and below may choose to apply for voluntary registration. For enquiries, kindly refer to 5. How does GST work? In Malaysia, a person who is registered under the Goods and Services Tax Act 2014 is known as a registered person. A registered person is required to charge GST (output tax) on his taxable supply of goods and services made to his customers. He is allowed to claim input tax credit on any GST incurred (input tax) on his purchases which are inputs to his business. Thus, this mechanism would avoid double taxation and only the value added at each stage is taxed. FAQs for GST-Version 2.0 January 2015 Page 1

2 6. Where can I obtain more information about the GST mechanism in Malaysia? Please refer to the official website of the Royal Malaysian Customs Department (RMCD) at for more GST-related information, legislation and guidelines. FAQs for GST-Version 2.0 January 2015 Page 2

3 Section B : GST information about Bursa Malaysia ( Bursa ) 1. Is Bursa a GST registered person? Yes, Bursa and its subsidiaries are registered as prescribed under the GST with requirements of RMCD. The following are the respective registration numbers: No. Name of Company Registration Number 1 Bursa Malaysia Berhad Bursa Malaysia Securities Berhad Bursa Malaysia Securities Clearing Sdn Bhd Bursa Malaysia Derivatives Berhad Bursa Malaysia Derivatives Clearing Berhad Bursa Malaysia Depository Sdn Bhd Bursa Malaysia Information Sdn Bhd Bursa Malaysia Islamic Services Sdn Bhd What are the GST treatments of fees charged by the Bursa Group? With effect from 1 April 2015, Bursa will charge GST at the standard rate of 6% (where applicable), as governed by the GST Act The schedule of fees charged by the Bursa Group includes, but not limited to, the following: Bursa Group Securities Market Type of fees Trade fees Clearing fees ISS fees Buy-in commission Admin Fee - Failed Securities Contract Fees for Securities Borrowing & Lending Listing fees Depository services fees Information services * Participants fees Access fees Central Matching Facility fee Fees relating to Clearing Guarantee Funds FAQs for GST-Version 2.0 January 2015 Page 3

4 Bursa Group Derivatives Market Type of fees Trade fees Clearing fees Tender fees Cash settlement fees Guarantee fees Collateral management fees for derivatives clearing fund Collaterals deposit/withdrawal fees Transfer fees Position adjustment fees Admin fees for clearing services Information services* Participants fees Islamic Market Bursa Suq Al-Sila' (BSAS) Islamic Market Sukuk & Bonds Islamic Market Exchange Traded Sukuk & Bonds (ETBs) Trade fees Access fees Administrative fees Listing fees Trade fees Clearing fees Listing fees Public Issue Fees Labuan International Financial Exchange (LFX) (All fees are Out of Scope, not subjected to GST) Regulations (All fees are standard rated, that is 6% except for transfer fees & fines which are Out of Scope, not subjected to GST) Application fees Renewal fees Listing fees Perusal fees Processing fees Access fees to Bursa Link Technology Systems Installation fees Network equipment rental Access fees Co-location* FAQs for GST-Version 2.0 January 2015 Page 4

5 Bursa Group Others Type of fees Rental Knowledge Centre - Membership fees, service fees, sale of publication and corporate souvenirs Tender fees Events Sponsorship income, participant fees and registration fees CBRS III Research coverage services *Note: If charged to a non-malaysian, it may qualify for zero rated (subject to conditions prescribed in the GST legislation). 3. Are the fines imposed under the Rules of Bursa subject to GST? No, fines imposed under the Listing Requirements and all Business Rules of Bursa Group of Companies are not within the scope of GST, as such, not subjected to GST. 4. Will Bursa Malaysia issue tax invoice? Yes, as Bursa Group of Companies has registered with the RMCD, Bursa will issue tax invoices for its taxable supply of goods and services. 5. If I am a non-malaysian trading Bursa s products, will I be charged GST on the services rendered in Malaysia? Yes, as non-malaysian trading on Bursa s products, you will be charged GST at the standard rate of 6%. 6. If my membership tenure in Bursa s Knowledge Centre overlaps 1 April 2015, is the said membership fee subject to GST? GST will take effect from 1 April As such, the proportion of membership fee after 1 April 2015 is subject to GST. However, your payment made before the implementation of GST is deemed inclusive of GST. 7. Are transfer fees imposed on Participating Organisations ( POs ) for recruiting experienced dealers representatives from another PO subjected to GST? No, the above transfer fees are out of the scope of GST. FAQs for GST-Version 2.0 January 2015 Page 5

6 8. I am a non-malaysian client subscribing to Bursa's Technical Infrastructure Services (TISA - rental model) and Bursa's co-location services, why is the co-location service fee qualified for zero-rated but the TISA fee is subject to GST at standard rated? To qualify for zero-rated treatment, the relevant services must be prescribed in the GST (Zero-rated Supply) Order 2014 ( the Order ). As the co-location services relate to the provision of a physical environment for the operation of the computer server equipment in Malaysia of a computer server equipment belonging to a non-malaysian (as per clause 19, Second Schedule of the Order), the fees are qualified for zero-rated treatment. However, as TISA is not prescribed in the Order, GST at standard rated will be applied. FAQs for GST-Version 2.0 January 2015 Page 6

GST Frequently Asked Questions (FAQs) Section A : General Information on GST. 1. What is a GST?

GST Frequently Asked Questions (FAQs) Section A : General Information on GST. 1. What is a GST? Section A : General Information on GST 1. What is a GST? A Goods and Services Tax (GST) is a consumption tax based on the value-added concept. GST is charged on any taxable supply of goods and services