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Sales & Service Tax (SST)
December 9, 2022
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Sales & Service Tax (SST)
What is sales tax?
Service tax are charged by registered manufacturers of taxable goods and on the importation of taxable goods into Malaysia.
General rate: goods are subject to sales tax at a rate of 10%
Specific rate: some goods are taxed at the reduced rate of 5%
What is service tax?
The rate for service tax is 6% for all taxable services. Services that are imported or exported are exempted from service tax.
Which businesses must apply for sales & service tax registration in Malaysia?
SALES TAX
Taxable goods manufacturers are required / liable to be registered when SALES VALUE OF TAXABLE GOODS has exceeded RM500,000 for 12 months period.
Manufacturers who carry out sub-contract work on taxable goods where the VALUE of work performed exceeds RM500,000 for 12 months period.
Exempted Goods from Sales Tax
Books, magazines, newspapers, and journals
Cereals
Coffee and tea
Fertilizers
Goods manufactured for export
Insecticides and disinfectants
Live animals, fish and seafood, and eggs
Meat and edible meat offal
Pharmaceutical products
Spices
Wood pulp and waste of paper
SERVICE TAX
List of Type of Taxable Services and Threshold
Any person with total amount of taxable services provided in 12 months exceed threshold below is liable to register.
Taxable Service
Threshold
Group A: Accommodation
RM500,000.00
Group B: Food & Beverages
RM1,500,000.00
Group C: Night Club, Dance Halls, Health Centres, Massage Parlours, Public Houses, Beer House
RM500,000.00
Group D: Private Clubs
RM500,000.00
Group E: Gold Club & Golf Driving Range
RM500,000.00
Group F: Betting & Gaming
RM500,000.00
Group G: Professionals
RM500,000.00
Group H: Credit Card/ Charge Card
RM500,000.00
Group I: Other Service Providers
RM500,000.00
WHAT IS COMPANY REGISTRATION NUMBER?
December 2, 2022
bp-ast
WHAT IS COMPANY REGISTRATION NUMBER?
Company Registration is a set of unique number that acts as an identification for a company. Company registration number is provided by the Company Commission of Malaysia widely known as Suruhanjaya Syarikat Malaysia (SSM) upon a successful incorporation of a company.
FORMAT OF NEW COMPANY’S REGISTRATION NUMBER
In October 2019, a new format of company registration number was introduced by SSM. A new set of number containing company information is added in front of the old format. This approach was introduced to standardize registration number for company, business and Limited Liability Partnership incorporated in Malaysia.
202201123456
–
123456-A
(New format)
(Old format )
The current format contains 12 digits with each sequence signify certain company information such year of incorporation, type of entities and the last 6 digits refers to the registration number sequence. The sequence follow certain format as explained below:
First four digits represent the year the company incorporated.
The next two digits represent type of business entity using these codes,
Code
Entity’s Code
01
–
Local Companies
02
–
Foreign Companies
03
–
Business
04
–
Local LLPs
05
–
Foreign LLPs
06
–
LLPs for Professional Practice
The last six digits represent the sequence of the business entity.
2022
01
123456
Year of incorporation
Entity’s Code
Sequence number
PURPOSES OF COMPANY’S REGISTRATION NUMBER
The main purpose of the company registration number is to identify business incorporated in Malaysia. In addition to that, it is also important when it comes to formal affairs such as filling for application and other administration affairs. Instance when company registration number are needed:
Opening company bank account in Malaysia
Registering for licenses and permits
Register company profile with government agencies such as Employee Provident Fund (EPF)
Apart from that, business registration acts as a legal proof of the company incorporation. This is because only those registered with SSM will be provided with the registration number and the number only unique to that particular entity only. There will be no other duplicates and this set of number cannot be forged as everything is recorded in database and everyone have access to that information.
Having company registration number also boosts and reinforces business reputation because customer or client can discern between legal entities and illegal entities to avoid from being a victim to a fraud or scam.
WHERE TO CHECK COMPANY REGISTRATION NUMBER?
Incorporated After October 2019 – Can be found on the Superform (Section 14), Notice of Registration (Section 15) and Certificate of Incorporation (Section 17).
Incorporated Prior to October 2019 – Can be check on SSM’s portal through e-search, e-info and MyData.
HOW TO OBTAIN THE BUSINESS REGISTRATION NUMBER?
To obtain business registration number, the company or entity need to be registered with the SSM. Upon incorporation, directors will receive the company number.
We at BP-AST can help you with the registration. For more details and assistance, you can contact our company secretary department.
WHAT IS DEPRECIATION?
November 17, 2022
bp-ast
The definition of an Accumulated Depreciation is the total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use. The intent behind doing so is to approximately match the revenue or other benefits generated by the asset to its cost over its useful life.
There are 5 types of depreciation:
Straight line it reports an equal depreciation expense each year throughout the entire useful life of the asset until the entire asset is depreciated to its salvage value.
Declining balance is a method where assets are depreciated at a higher rate in the initial years than in the subsequent years. Under this method, a constant depreciation rate is applied to an asset’s (declining) book value each year.
Double-declining balance this method is an approach to accounting that involves depreciating certain assets at twice the rate outlined under straight-line depreciation. This results in depreciation being the highest in the first year of ownership and declining over time.
Sum of the Years’ Digits, under the SYD method, the depreciation rate percentage for each year is calculated as the number of years in remaining asset life for the same year divided by the sum of remaining asset life every year through the asset’s life.
Units of Production is method that requires an estimate of the total units an asset will produce over its useful life. Depreciation expense is then calculated per year based on the number of units produced.
Other than that, Accumulated Depreciation also known as the total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use. The accumulated depreciation appears on the balance sheet as a reduction from the gross amount of fixed assets reported. It might be list in several accumulated depreciation accounts, one for each fixed asset type.