Day: October 20, 2022

  • Sales Tax Policy No. 2/2022: Facilitation of Drop-shipment Activity

    Sales Tax Policy No. 2/2022: Facilitation of Drop-shipment Activity

    There’s no doubt that the drop-shipping business model is a type of business that is both easy to start and very good for business.

    Drop-shipping companies are already being started by people of all ages, in all parts of the world, with various histories and levels of expertise.

    On its MySST website, the Royal Malaysian Customs Department (RMCD) has published the Sales Tax Policy (in Bahasa Malaysia) dated August 24, 2022.

    Under the Sales Tax Policy:

    • A registered manufacturer who exports taxable finished goods produced or manufactured is exempt from payment of sales tax under Item 56, Schedule A, Sales Tax Order (Persons Exempt From Payment of Tax) 2018.
    • The registered manufacturer can also export its finished goods sold to traders in Malaysia, and the finished goods are exempted from payment of sales tax under the said details.
    • This situation occurs when the trader receives purchase orders from customers outside Malaysia.
    • The trader then purchases from the registered manufacturer and instructs the registered manufacturer to export the finished goods on his behalf directly.
    • In this case, the registered manufacturer must issue a sales invoice to merchants without charging sales tax. Invoice details must meet Rule 7, Sales Tax Regulations 2018, stating particulars of “bill to” and “ship to“.
    • Finished goods exported by a Registered Manufacturer on behalf of an eligible trader being exempted from sales tax involves only one level of traders, i.e. traders who buy finished goods from registered manufacturers only and not involving other traders who buy from that trader.
    • The export declaration system will show that the finished goods are exported by stating:
      • The name of the registered manufacturer as the Consignee (exporter) is inside the consignee column.
      • The customer’s name outside Malaysia as the Consignee (importer) in the consignment section in Customs Form K2.
    • Besides, clause care of (on behalf of) the trader (full name and address) should be stated on the left side of Form K2 near the column for the Forwarding Agent (Customs Agent).
    • The Bill of Lading should be stated as per the Form K2, i.e.
      • The consignor is in the name of the registered manufacturer; and
      • The consignee is in the name of the customer outside of Malaysia.
    • In Form SST-02, Registered manufacturers must declare the sales value of finished goods exported on behalf of the trader in column 18 (a) – Export / Special Area / Designated Area.
    181.1-Sales-Tax-Policy-No.-2_2022-Facilitation-of-Drop-shipment-ActivityDownload

    This Sales Tax Policy can be found here:-

    Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Therefore, any reliance on such information is strictly at your own risk.

    Keep in touch with us so that you can receive timely updates |

    要获得即时更新，请与我们保持联系

    1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

    4. Blog ✍ https://lnkd.in/e-Pu8_G 5. Google ✍ https://lnkd.in/ehZE6mxy

    6. LinkedIn ✍ https://www.linkedin.com/company/74734209/admin/

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  • English version of the FAQ on Implementation of e-TT System for TT, EFT and IBG Payment Methods

    English version of the FAQ on Implementation of e-TT System for TT, EFT and IBG Payment Methods

    With effect from 1 April 2022, an e-Telegraphic Transfer (eTT) system has been implemented for the payment of:

    • Income Tax,
    • Petroleum Tax,
    • Real Property Gains Tax (RPGT),
    • Compound Payment,
    • Public Entertainer Tax (Seniman Kembara), and
    • Withholding Tax (WHT)

    through Telegraphic Transfer (TT), Electronic Funds Transfer (EFT), and Interbank GIRO Transfer (IBG) methods from within and outside Malaysia.

    There are a total of 18 questions that are presented in the form of frequently asked questions (in the Bahasa Malaysia version) on the implementation of the e-TT system for TT, EFT, and IBG payment methods issued in March 2022.

    English version of the Frequently Asked Questions

    The English version of the Frequently Asked Questions (“FAQ”) has been uploaded by the Inland Revenue Board of Malaysia at https://mytax.hasil.gov.my > ezHasil Services > e-TT > FAQ.

    The differences between the two versions are that the English version has added 2 additional frequently asked questions as follows:

    These Frequently Asked Questions can be found here:-

    182.1-English-version-of-FAQ-on-Implementation-of-e-TT-System-for-TT-EFT-and-IBG-Payment-MethodsDownload

    Footnotes

    Companies that make payments in monetary form to agents, dealers and distributors arising from sales, transactions, or schemes carried out will be required to withhold tax at a rate of 2% on the gross amount beginning on January 1, 2022, under the provisions of Section 107D of the Income Tax Act 1967, which was introduced into the act as a result of the Finance Act 2021 and became effective on January 1, 2022.

    Press Release

    The announcement of the following administrative requirements was made in a press release released by the Inland Revenue Board (IRB) on July 9, 2022:-

    • Companies that make payments to agents, dealers and distributors are expected to compute the total WHT applicable for a specific month (i.e., on a monthly basis) and submit the accumulated amount to the IRB by the end of the following month.
    • For instance, the WHT for payments that were made to agents, dealers and distributors in the month of October 2022 (i.e., from the 1st of October 2022 to the 31st of October 2022) needs to be remitted to the IRB by the 30th of November 2022.

    According to these FAQs, any payments made according to Section 107D (Deduction from Commission) are not permitted to be carried out through the e-TT system.

    A special electronic payment system will be developed to handle payments made under Section 107D.

    Before sending in their WHT payments, businesses are obliged to provide the most latest version of Form CP107D (Pin 2/2022) and Appendix CP107D(2) to the appropriate IRB payment centres in the form of an email.

    When you pay the withholding tax, you must give the payment centre a copy of the email so they can check and ensure everything is correct.

    The e-mail addresses of the respective payment centres are as outlined below:

    Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Therefore, any reliance on such information is strictly at your own risk.

    Keep in touch with us so that you can receive timely updates |

    要获得即时更新，请与我们保持联系

    1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

    4. Blog ✍ https://lnkd.in/e-Pu8_G 5. Google ✍ https://lnkd.in/ehZE6mxy

    6. LinkedIn ✍ https://www.linkedin.com/company/74734209/admin/

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