Malaysia: Penalty relief for late payment of GST; service tax exemption for joint development area

GST payments made during the period 1 May 2021 through 31 August 2021; taxable services provided within Malaysia and Thailand

GST payments made during the period 1 May 2021 through 31 August 2021

The tax authority will consider relief from penalties assessed for late payments of goods and services tax (GST) with regard to GST payments made during the period 1 May 2021 through 31 August 2021, provided that certain conditions are satisfied.

The conditions include full payment of GST. If the late payment relates to an outstanding late-payment penalty, relief is provided if 20% of the penalty is paid during 1 May 2021 through 31 August 2021 (with relief allowed for the remaining 80% of the penalty).

Read a June 2021 report prepared by the KPMG member firm in Malaysia

Service tax exemption

Service Tax Policy 1/2021 (27 May 2021) addresses a service tax exemption with regard to taxable services provided within the “joint development area” (Malaysia and Thailand).

Effective 1 May 2021, the Malaysia-Thailand joint authority and companies operating in the joint development area are exempted from paying service tax on the taxable services provided within the area by any company in the “principal customs area.”

Service tax on imported taxable services (including digital services) into the joint development area still applies.

Read a June 2021 report prepared by the KPMG member firm in Malaysia 

 

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