GST Malaysia Workshop & Seminar 2014

Malaysia GST is scheduled to be introduced in April 2015.  The uppermost question in everybody's mind is - which accounting software provides GST invoice and calculation.

We are conducting a series of workshops, entitled  "How to use MYOB Accounting software to track GST transactions"

Register at our dedicated website   MYOB Accounting System   

This workshop is ideal for :

• existing MYOB users

• business owners who currently outsource their accounts

• business owners who currently use other accounting software which is not  GST- ready. 
  
  If you intend to buy a new accounting software in 2014, it is best you ask about the vendor's preparedness and experience in  GST implementation.  

Come and find out how MYOB Accounting software helps SME's in Singapore and Australia cope with GST calculation and GST form submission,  and how it is ready to assist Malaysian SME's in time to come.  

The current MYOB Accounting Malaysia software edition is already GST-ready.   It is capable of  calculating the correct GST amounts paid and collected, whether it is going to be Standard Rated, Zero Rated, Exempt Supplies or Out of Scope Supplies.   At the end of the period, to print GST report, just click Print. 

Come and ask your questions, on the accounting software part.  This workshop is more about how the MYOB software will help you record your transactions on a timely basis, in time for GST reporting every month, or every quarter, depending on the circumstances. 

For specific GST questions relating to your business, we ask that you refer to the Customs Department officers themselves. 

 
In this workshop, we want to share our knowledge of the following topics to help you prepare for eventual GST implementation.  

1. Overview of the proposed GST model for Malaysia
2. Scope of GST
3. Impact of GST on EVERY company's cashflow position
4. Demo on how GST and non-GST transactions are tracked in MYOB Accounting software.
5. GST reporting in MYOB software

This workshop is a sharing session with MYOB users and non-MYOB users. 

It is very important that you understand the effects of GST on your business, so that you can better prepare for it. Then go back to strategise and plan your next move.

Once again, click here to register for the GST Malaysia workshop :   MYOB Accounting System . 


If  for whatever reason, the above event is not updated, please send us a feedback.

GST Implementation is a must

There are many parties who are urging the Malaysian Government of the day to announce the introduction of  GST in the coming 2014 budget to be held on October 25, 2013.

Arguments supportive of the GST:

1. Accounting firm PWC suggests that the GST rate to be imposed at 6%.  The Government can expect to rake in an annual revenue of around RM32 billion at the suggested 6% GST rate.  If the GST was to be imposed at 4% per cent, it would be 'revenue neutral' and there was no point in imposing it. (see report here)

The increase in revenue collection is to give the government some degree of flexibility in terms of fiscal management.  More importantly, it will not cause a further downgrade of the country's Fitch's rating.

 2. The Secretary-General of Treasury  says that  "GST implementation a must" .  There is an urgent need to tackle the country’s fiscal deficit  as Malaysia’s current account shrank to RM2.6 bil in the second quarter of 2013.   Full report here

The country's public debt level is so close to the statutory limit of 55 per cent of gross domestic product (GDP).   The country needs money to fuel the 6.5 per cent growth that is needed to become a rich nation by 2020.  

3. With the introduction of GST, it will mean  that the Country will be able to  generate a more stable source of income, while reducing reliance on direct taxes (Income tax) and petroleum revenues.

Just to recap, GST is a form of tax collection that is based on consumption.  It is supposed to be a  fairer tax system, as it will help the government collect their dues from those who have yet to declare and file their income tax returns. What the income tax does not capture, the GST will capture.  


4. What is wrong with the goods and services tax (GST) when more than three-quarters of the world's countries are implementing it? They can't be all wrong.   (Read more here )

Arguments against GST

There are also many parties who are opposing the introduction of GST.  The opposing parties said that now is not the time to introduce GST because "it will heavily burden the rakyat and take a toll on the rakyat"  (quote extracted from here).  There are parties that will try to stop GST from being passed in Parliament.

Also, the opposing argument is for the government to look into cost controls, instead of just focusing on broadening its income base by implementing the GST

"It is important that the efficiency and effectiveness of our government organisation are enhanced and improved ... only then do I think the deficit can be reduced."   Read more

So will it or will it not be announced in the coming 2014 budget?  

Malaysian Government will not implement GST in the near term

So, the Goods and Services Tax (GST) will not be implemented yet in the near term,  at least not until some issues are being tackled, said the new Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.  Amongst others, the Government is taking a holistic view of the GST implementation, and will address issues such as :

1. studying the GST  implications and rate to be imposed
2. engaging with politicians, the private sector and the general public before arriving at a decision
3. relooking the earlier study by taking a holistic view of it
4. see the GST from the point of prosperity of the people (not just the point of view of the Government's revenue generation)
5. looking at providing some assistance to the people, in tandem with the government's intention to reduce corporate and personal tax

 In terms of the GST rate, the government is looking into it in terms of its benefit to the government, the private sector and the general public.

In other words, a review is being made on the GST implementation, and no timeline is set yet  for the implementation of the GST.

More time is needed to study the GST implementation

Source :
Bernama  report titled  "Government Will Not Implement GST In The Near Term"
Dated  : May 30, 2013

Latest news : GST in Malaysia is postponed, again

The Ministry of Finance Malaysia announced its latest news on October 13, 2010 that the implementation of Goods and Services Tax (GST) has been postponed.  The press release is short and sweet - contains only 3 paragraphs.

The postponement of GST implementation is the second time that I know of.   The first time was announced in year 2006 (the GST was then supposed to be implemented on Jan 1, 2007).

There is no indication when the GST will be revived.   This announcement is just 2 days short of the tabling of the 2011 Budget on October 15, 2010.

The only idication that the GST may be brought back in the (immediate) future is the 2nd paragraph that says :

"This (the postponement) is to enable the government to engage inclusively with all segments of rakyat pertaining to the GST.  The Government will take into account the interest and welfare of the society to ensure the implementation of GST is well received."

The 3rd paragraph reads:

"Notwithstanding the postponement, the Government recognises the importance of GST in ensuring a strong and sustainable fiscal position to support the long term economic growth"

The GST was scheduled to be implemented in middle of 2011.

My one sen worth
Most countries take 4-5 years to prepare for GST implementation.  Malaysia could have taken the time from the first postponement in 2006 to undertake such a study.  Hopefully, this time Malaysia will take the time from today to conduct the required studies, so that when (and if) the GST is announced again, there will not be any  flip-flop decisions.

Read the press release in its original form here

Tourist refund scheme to be introduced

In a GST environment, tourists who have been subjected to GST on their purchases while holidaying in Malaysia are entitled to a refund of the GST paid. 

The Malaysian goverment is going to introduce a tourist refund scheme, and details are being worked out on the appointment of tourist refund agents, approved outlets, and quantum of refund.

 

Public relations firm to promote GST in Malaysia

The Malaysian Government will appoint a public relations firm to help it conduct more  programmes to increase awareness of GST in Malaysia. 

In the next few months, we will hear a jingle about GST.  There will also be more roadshows, television talks, and billboards on the impending GST introduction.

So far, there have been 2,000 awareness programmes organised by the Ministry of Finance, SME Corp, and Federation of Malaysian Manufacturers (FMM).



 

Are Malaysians ready for GST in 2011? No.

Are Malaysians, in general, ready for the Goods & Services Tax (or otherwise known as GST) in 2011?

No, according to the ACCCIM - Associated Chinese Chambers of Commerce & Industry of Malaysia.

The ACCCIM 2010 SME's Survey sent out a questionnaire to 2000 SME's but only 1250 returned their questionnaire paper.

Out of these, 33% said their business were not prepared for the GST implementation due to a lack of information from the government.

About 80% of the respondents said their computer systems were not ready to cater to the GST system.

What can we infer from the findings?
1. The Malaysian Government must strenghten its efforts to educate the public so that they will have a positive view of the GST

2. The government should draw up a clear timetable and give the public sufficient time to prepare for GST implementation

3. The Government should consider giving out incentives to encourage companies to switch to GST systems. Note: The Singapore government gave out a rebate of SGD 5,000 for companies that bought new software and hardware systems that are GST compliant.

4. In the meantime, all companies concerned should take the initiative to source for new computer systems that can track the GST payable, and GST collectible, so that they will not lose out when the GST is introduced.

My one sen worth
The ACCCIM said that 2012 is the right time to introduce GST as 24 months time frame is necessary to get the public to be ready for GST. However, it is like setting a moving target. Come 2012, the companies will also not be ready. The GST idea has been mooted since 2005, and was supposed to be introduced on Jan 1, 2007. And still, people are not ready.

I think the government should bite the bullet, and take the strong commitment to explain the exact workings of GST, and how it will affect the consumers. Do not skirt around the issue, and say that it will be good for the country's economy. Explain that only a handful of Malaysians pay tax, and that is not enough to maintain the country's development. Also, be transparent, and explain exactly which projects are going to be funded by tax collected, and so we can make the Government accountable .

Read the articles in Bernama, and the Star

Read the actual report REPORT OF ACCCIM 2010 SMEs SURVEY  as published on the ACCCIM website

Legalising sports betting can help delay Malaysia's GST implementation

What does sports betting have to do with the implementation of GST in Malaysia? 

The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), have suggested that the tax revenue to be collected from the legal sports betting (estimated at Rm 1 bil to Rm 3bil annually) can be used to fund public expenditures, and thus delay the implementation of GST in Malaysia.  Read media report : Betting revenue can help delay GST implementation

In order to understand why such a the statement was issued, we need to understand the current sentiments on economic issues.

1. The GST has not received acceptance by Malaysian in general. The Government is forced to put on hold the implementation of GST.   Partly because the Government has not done enough publicity to explain its necessity and the people resort to street protests

2. In early May,  the media carried reports that the Goverment may legalise sports betting.   Many people object to legalising sports betting, and have resorted to public demonstrations to express their disapproval.  The objections came from religious bodies, and NGO's, and also from political bodies.

3. Around the same time, another news, this time on the country's economic status surfaced which gloomly mentioned that Malaysia will be bankrupt by 2019 if it does not cut subsidies and rein in borrowings.   The statement  risk bankruptcy by 2019.  was quoted by the Minister in the prime Minister's Deaprtment.   So we were given the impression that the country really needs funding to clear its borrowings

4.  So in order to help clear disputes on the sports betting, ACCCIM issued a statement that rationalises that the tax to be collected from sports betting could be used as additional funds to reduce the country's borrowings, and hence delay GST implementation.

The statement could be an attempt by interested parties to garner support for sports betting to be made legal in Malaysia, using the unfavourable GST as an excuse.

How can you prepare for GST

CheckList to gauge whether you  are ready for GST .  Read here

Will the civil servants get a pay rise when GST is implemented?

The Malaysian Prime Minister Datuk Seri Najib bin Tun Razak said that the salary of 1.2 million ciivl servants can be adjusted upwards when the GST is implemented. 

He said that the  implementation of GST will strengthen the government's revenue base, which could be used to work out better deals for the people.

The Prime Minister was quoted as saying;   ***
"That is why GST is important. People want higher wages but not willing to support GST. I need the support of the 1.2 million government employees. If you want to be paid better in the future, I have to strengthen the government's revenue base because otherwise, where do I get the money to pay government servants?

*** According to an interview with Prime Minister with Bernama TV on his first year as Malaysian Prime Minister on April 4, 2010

Government to provide public education on GST

How is the Malaysian Government going to educate the public on the Malaysian GST issue?

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said,  "the Government would embark on a programme, with help from the Information Department, to educate the public and disseminate accurate information."

He also said that  "The Government will only implement the proposed Goods and Services Tax (GST) in Malaysia if the people accept it"

In addition, he  said the Government wanted the people to view the GST favourably, rather than look at it as something imposed on them.  The people  are (will be?) given the chance to give input so that when implemented, GST will be accepted by the people and the government.   In fact, I think the people should feel proud because they are being consulted. (how does one interpret this statement purportedly from the Minister?)

The public education will  allay the many misconceptions about GST, and to dispel the perception that the delay in GST implementation in Malaysia to a later date,  is not a lack of political will.

Background: Note :
The Malaysian government decided to postpone tabling of the Goods and Services Tax (GST) Bill for second reading in parliament scheduled on March 17, 2010,  after having tabled it for first reading in December 2009.

We hope to see more active discussion, with facts and figures, not only official statements from the Goverment.

Read the actual interviews with the Minister here and here

Malaysian GST

Malaysia is on the verge of implementing GST come 2011. However, the Government did not proceed to table the 2nd reading of the GST Act in Parliment in March 2010.
Why did the Malaysian government decide not to proceed with the tabling of GST Act in parliment?

Even at this late stage, a majority of Malaysians do not know a thing or two about GST. So the Malaysian Government is going to engage the people to get the general consensus before they implement GST.

In my nature of business as a supplier of accounting software, I meet small to medium sized business owners everyday, and many are still ignorant of GST, its implications on their business, and how to go about preparing for the eventual coming of GST.

So this blog will be a good resource for my customers, and the general public.