• IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here.

    The OTHER forum is HERE so please stop asking.

GST Impact

westman

Alfrescian
Loyal
Just read from a website..GST will impact if the purchsse is Commercial Property Title and we pay by instalment if we have purchased property before 1st April.

Sorry folks, the news is in chinese...

Source: http://property.sinchew.com.my/node/2970

鄧先生說,他在2015年2月(農曆新年前)簽署買賣合約,購買一個產業單位,並且支付10%的首期購買產業款項,其餘的90%是在2015年4月1日之後支付。請問:“在4月1日之後支付的購買產業款項,是否需被徵收6%的消費稅?”

另一名讀者張先生說,他在2015年2月25日,購買一間轉售的店屋,買賣合約是在2015年4月1日之前簽署,產業地契的轉名手續在4月1日之後完成,請問:“我會否被徵收6%的消費稅?”

答:鄧先生來信沒有說明他簽署的買賣合約,購買的產業是商業產業,例如店屋或是住宅產業,假如是商業產業例如店屋,那麼在2015年4月1日之後的分期付款,須被徵收6%的消費稅,如果是住宅產業則可豁免。

與讀者鄧先生的問題類似,張先生購買的店屋是商業產業,雖然簽署買賣合約的時間是2015年4月1日(實施消費稅措施)之前,可是,產業地契的手續是在4月1日之後才完成,在4月1日之後的付款,須支付6%的消費稅。

【相關新聞請點大事件:徵收消費稅】

(星洲日報/投資致富‧產業問診‧文:鄭碧娥)
 

FHBH12

Alfrescian
Loyal
Owners of strata title properties expect rise in maintenance fees despite GST exemption
27 Mar 2015 13:50
Kuala Lumpur

OWNERS of strata title properties in Malaysia can expect an increase in maintenance fees once the 6 per cent goods and services tax (GST) is implemented in April even though such charges are exempted.

Property players have flagged a potential fee hike of more than a 10th to make up for shortfalls, particularly in developments where there are substantial defaulters.

Last month, the government decided that maintenance fees for all stratified residential properties would be exempted from GST following appeals by property managers and management corporations for the exemption to be extended to all strata property rather than to low and medium-cost apartments only.

As it is, the fought-for exemption will only make it slightly less painful, property consultants and tax experts said. If the fees had been standard-rated, joint management bodies (JMBs) or management corporations would pass on the additional tax imposed by their suppliers for cleaning, security, landscaping and other services. But as the fees are now exempt, JMBs cannot claim back the taxed inputs from Customs yet at the same time cannot afford to absorb the additional expenses.

"All services will charge the 6 per cent, and JMBs will have to recover it somehow," observed Taxand Malaysia chairman Veerinderjeet Singh.

While the aim had been to get the fees as zero-rated supplies, "there was no way they were going to get it".

Rather, the compromise allows JMBs to save on software, administrative and accounting costs. A similar compromise can be seen in the treatment of residential properties.

According to the Ministry of Finance website, exempting residential homes from GST "is to reduce the burden of the rakyat because a house is a basic necessity". It noted that an exemption has "a minimum effect" than if homes were standard-rated.

Developers estimated that home prices will rise by 3-4 per cent because of the implicit increases in building costs which they do not intend to foot - or at least not all of it.

In any event, maintenance collections could get tougher with GST given that there are already substantial numbers of recalcitrant owners.

The Building Managers Association of Malaysia president Eddy Chen had previously estimated that four out of 10 owners of low to medium-cost flats default on their monthly fees which amount to only RM35-70 (S$13-26) .

He projected that fees will need to be raised by more than 10 per cent post GST to cover the shortfall of defaulters.

While the rate of collection is higher at high-end developments, many units are now owned by investors who bought on very easy credit terms and who many have difficulty flipping or servicing their loans or securing tenants upon delivery.

"Collecting is always a headache and especially a struggle in low to medium-cost apartments. Many do not pay because they know it will be a while before action and enforcement can be taken," observed Henry Butcher Malaysia chief operating officer Tang Chee Meng.

Henry Butcher manages 40-50 "better quality condominiums". Mr Tang estimated that its collection rate is "easily 80 per cent".

Singaporeans constitute a substantial chunk of owners, especially in certain developments in Johor. KGV-Lambert Smith Hampton (Johor) executive director Samuel Tan expects any fee rise to be a "small matter". The already robust Singapore dollar made further gains against the ringgit, appreciating by about 3.6 per cent in the past six months.

http://www.btinvest.com.sg/dailyfre...se-in-maintenance-fees-despite-gst-exemption/
 

snowbird

Alfrescian
Loyal
All related services to own a property including the hefty legal fees and later the renovation, appliances and furnishing cost will all be up by at least 6 to 10%.
 

westman

Alfrescian
Loyal
All related services to own a property including the hefty legal fees and later the renovation, appliances and furnishing cost will all be up by at least 6 to 10%.

I think the worst is.. making progressive payment to the developer with GST.. assuming 1mil purchase... we need to pay 6K for each 100k payment if our strata is commercial title...
 

FHBH12

Alfrescian
Loyal

FHBH12

Alfrescian
Loyal
I'm under the impression that a property under commercial title is treated as a commercial property, hence it is subject to commercial rates for taxes and utilities. Please correct me if I'm wrong. For discussion purpose only as I only have pure residential titled properties.
 

westman

Alfrescian
Loyal
Seem very confusing as both page 9 seem to be aligned with the Sin Chew News Report. Page 24 is very subjective.

If goes by the current logic held by Malaysia Gahmen.. commercial title property need to pay commercial rate for utility... i am afraid they might just continue to held this view..
 

Funniman

Alfrescian
Loyal
I'm under the impression that a property under commercial title is treated as a commercial property, hence it is subject to commercial rates for taxes and utilities. Please correct me if I'm wrong. For discussion purpose only as I only have pure residential titled properties.

As a matter of discussion, it is true that GST is exempted for properties for residential purpose even if it is on commercial title. However, if the property is found to be rented out, hence the commercial element is there, would GST be imposed? Or if it is those SOHO, some for residential and some for commercial, yet some residential cum commercial. Confusing.
 

RedsYNWA

Alfrescian
Loyal
As a matter of discussion, it is true that GST is exempted for properties for residential purpose even if it is on commercial title. However, if the property is found to be rented out, hence the commercial element is there, would GST be imposed? Or if it is those SOHO, some for residential and some for commercial, yet some residential cum commercial. Confusing.

Though Malaysia's GST is in my opinion, unnecessarily complicated, some core principles remain. For eg, only businesses > RM500k yearly revenue need to be registered for GST.

So for residential property being rented out, if you are in the business of renting out properties and with revenues > RM500k yearly, you will then impose a 6% GST on your rental income, to be paid by your tenant. Similarly for commercial properties, a 6% GST on rental income needs to be imposed on your tenant, provided your business revenue exceeds RM500k.
 

Legolad

Alfrescian
Loyal
Re: GST Not to Affect House Rent, Maintenance Fees

From Property Guru:

The Royal Malaysian Customs said the implementation of the goods and services tax (GST) should not be used as an excuse to increase house rents as well as maintenance bills for residential properties which are GST-exempt.

According to Raizam Mustapha, senior assistant director of Customs II, Real Property, Construction and Professionals sector, the development of buildings or land used for residential, agricultural land or for general purposes is not subject to GST.

“Any property in Malaysia categorised as residential is exempted (excluded) from GST,” said Raizam in a GST media briefing related to housing and property sector.

“Whereas, buildings that are not deemed residential buildings are considered commercial and subjected to six percent GST,” she added.

To be implemented from 1 April at the rate of six percent, the GST will replace the Sales and Services Tax (SST) which totals 16 percent.

She noted that maintenance bills are also exempted from GST in order to prevent occupants, particularly those in stratified residential properties, from being burdened.

Raizam added that any charges related to the maintenance bill of a building is determined by Management Corporation (MC) or Joint Management Body (JMB) and should not be associated with GST.

Presently, the MC or JMB is exempt from registering with the GST; hence, there should be no increase in maintenance bill.

“For cleaning purposes, the JMB or MC may get the services of parties (companies) which are not registered for GST, which has a turnover not exceeding RM500,000,” said Raizam.

She also revealed that residential land developers, under the GST era, can still recover the costs for developing public facilities such as religious houses, roads, schools and housing estates from the government via the input tax.

However, developers can only make the six percent claim if they surrender the public facilities built to the government.

http://www.propertyguru.com.my/prop...ampaign=dailynews-30Mar2015&utm_content=links
 

FHBH12

Alfrescian
Loyal
Re: GST Not to Affect House Rent, Maintenance Fees

Buying spree in Malaysia to avoid 6% GST from April 1
PUBLISHED ON MAR 31, 2015 8:35 AM

PETALING JAYA (THE STAR/ASIA NEWS NETWORK) - Malaysia's Goods and Services Tax (GST) which will kick in on Wednesday has sent many consumers on a buying spree to avoid the new tax.

Despite being constantly reminded that the 6 per cent GST will not be a burden, a deluge of people converged on shopping centres, digital malls and even grocery chains over the weekend.

Several smartphone retailers in George Town, Penang, said they had run out of stock of the popular models because people were snapping these up to avoid paying GST on them.

The retailers said they were taking bookings now - if a customer is willing to make a down payment for a device before April 1, he would pay the current price (no GST) when the stock comes in later.

At the Digital Mall here, a retailer said there were so many people shopping for phones and other devices on the weekend that the mall stayed open till midnight. Normal business hours are 10am to 10pm.

Even pharmacists reported a spike in the number of customers. The people were stocking up on health supplements and medicines, especially those with long-term illnesses.

Several supermarkets, however, were dreading long queues and expected angry customers who may be confused over the new tax on Wednesday.

One operator in Johor Baru has tried to prepare its customers by putting up before-GST and after-GST price tags during the past few months, as well as handing out pamphlets on the matter.

But to be safe, its security guards have been told to be on the look out for enraged customers.

On Monday, trolleys were in short supply at several supermarkets because of the crowd.

One shopper said the people were queuing up at the trolley-return station.

Some restaurant owners were also just as worried about having to deal with angry customers who might refuse to pay the bill.

They said they dreaded having to collect the GST from their patrons, and one remembered a customer who turned violent when sales tax was first implemented years ago.

A new smartphone app from the Domestic Trade, Cooperatives and Consumerism Ministry will be helpful to those consumers wanting to double check the prices of goods.

The MyKira GST app is only for phones with the Android operating system and enables consumers to check the prices of more than 10,000 items and services.

On the plus side, the big retailers said they were all set for the GST.

Banners and signboards explaining the GST and zero-rated goods have been put up.

Some businesses said they hoped they would not be penalised for any initial mistakes they make concerning the GST.

In Johor Baru, the Chinese Chamber of Commerce said many of these businesses were still wrestling with implementing the new tax despite numerous briefings.

They hoped for a two-year grace period to adapt, particularly the small and medium enterprises.

According to the Customs Department, public confusion over the GST is expected to last about six months to a year.

One of the biggest hurdles for consumers would be the price differences between GST-registered and non-GST-registered businesses, it said.

It has set up a help desk hotline for the public to clear up any doubts about GST.

A book of Frequently Asked Questions on the GST, a Taxpayer Access Point handbook for businesses on tax returns and a multimedia video have also been launched.

- See more at: http://www.straitstimes.com/news/as...d-gst-wednesday-20150331#sthash.ZOXzRhmS.dpuf
 

FHBH12

Alfrescian
Loyal
Re: GST Not to Affect House Rent, Maintenance Fees

Hypermarts in Malaysia all set for 6% GST launch on April 1
PUBLISHED ON MAR 31, 2015 9:00 AM

He said shoppers should also be aware that processed food products would be subject to GST. "One example would be tomato ketchup," he said.

He said Mydin had been making massive preparations for the GST of 6 per cent.

However, Ameer conceded that hiccups were bound to occur at the beginning stage "as we have 251 stores nationwide with 130,000 items on the shelves".

It would take time to rectify the errors, he said, seeking customers' patience while they sort things out.

Giant (GCH retail) corporate communications officer Rozalinda Idris said they had been working on having labels for products which come under GST, besides printing their GST registration number on receipts.

"We are consumers ourselves, so we want to ensure that all the necessary information is communicated to the people through labels and signs.

"Human error, however, cannot be avoided. If there is such a case, we will acknowledge the mistake and charge the lower price," she said.

She said they had been given guidelines from the Government on the matter, and the company had been working on them since the second quarter of last year.

Panasonic Malaysia finance manager Michelle Chong said they had made the necessary changes to their invoice template to feature their GST registration number.

"Price revision for labels is being done. We are doing our best to comply with the requirements of the Government," she said.

- See more at: http://www.straitstimes.com/news/as...aunch-wednesday-20150331#sthash.4GLXDOuV.dpuf
 

FHBH12

Alfrescian
Loyal
Re: GST Not to Affect House Rent, Maintenance Fees

Rush before Malaysia GST kicks in
PUBLISHED ON APR 1, 2015 2:41 AM

jjl6h5.jpg


Empty shelves at a supermarket in Johor Baru yesterday, as Malaysians went on shopping sprees to purchase household items such as paper towels, washing detergent and diapers.

They were scrambling to stock up on products, ahead of a 6 per cent goods and services tax that comes into effect today.

Hordes of people converged on shopping centres, digital malls and even grocery chains over the weekend.

Long queues were a common sight as consumers rushed to stockpile non-perishables.

- See more at: http://www.straitstimes.com/premium...aysia-gst-kicks-20150401#sthash.MVbNcqSv.dpuf
 

FHBH12

Alfrescian
Loyal
Concerns over cost, non-compliance
PUBLISHED ON APR 1, 2015 2:44 AM

BY WONG WEI HAN

SINGAPORE companies operating in Malaysia are still uncertain about their readiness for the 6 per cent Goods and Services Tax (GST) which kicks in today.

Some Singapore firms also expect a short-term hit to sales as prices rise after a major spending spree by Malaysians in the weeks before the tax took effect.

A foreign company selling goods or services in Malaysia must be GST-registered if the value of its business is RM500,000 (S$185,000) per year.

For Singapore interior furnishings firm Goodrich Global, which operates five sales galleries in Malaysia, becoming GST-compliant was laborious and costly.

"We had to upgrade our back-office software to have the required invoicing and tracking systems. Another part was to train our staff to understand how the tax works. The entire process cost us about RM50,000," said chief executive Chan Chong Beng.

"We are ready for GST, but we do not expect to be 100 per cent correct. One thing we haven't fully understood is what items or services are exempted from the tax treatment."

Mr Burt Png-Yap, founder and sales director of Smartstripe Marketing, is also unsure. His company, which produces key cards and Nets cards, acquired two industrial units in an Iskandar business park in 2012. Operations will begin in 2016.

"Many unclear areas have yet to be ironed out. I once spoke to (Malaysian) Custom officials at Woodlands Checkpoint for details on GST tabulation for goods brought into Malaysia - they didn't have the information as none had been provided."

Mr Koh Soo How, Asia-Pacific leader for indirect taxes at PwC Singapore, agrees that many questions remain unanswered.

"It is uncertain, for instance, if a GST registration would give rise to corporate tax implications for Singapore companies… Compared to Singapore, the higher complexity of the Malaysia GST system, providing for wider exemption and zero-rating of various categories of goods and services, is likely to lead to more interpretational issues that would take time to resolve," he said.

Companies will face ongoing compliance costs because they have to keep business records and file GST returns.

Those companies operating in Malaysia which do not have a locally registered entity must also hire a tax agent to handle GST obligations - or register a local entity simply for that purpose.

All this uncertainty raises the prospect of penalties for non-compliance. The fine for any errors in GST returns can go up to RM30,000. A similar offence in Singapore could attract a $5,000 penalty, Mr Koh said.

Meanwhile, the pre-GST buying rush has lifted retailers' sales.

Goodrich Global's Mr Chan said: "We saw an almost 20 per cent increase in our Malaysia sales in the first quarter this year. We haven't done so, but naturally we will have to increase our prices - probably by 10 per cent - after the GST kicks in, and that will likely cut our sales by also 20 per cent in the subsequent quarter."

This is comparable to the situation in Singapore when GST was first implemented in 1994, Mr Koh said.

President of the Association of Small and Medium Enterprises Kurt Wee said many of its members operating in Malaysia have voiced concerns over costs.

"Structurally, Malaysia still presents a good level of cost savings even when including GST. We must also keep in mind that GST replaces the original 10 per cent sales tax, which can help offset some GST-related costs. So the net impact is more visible on the business-to-consumer side, but business-to-business it's more manageable."

[email protected]

- See more at: http://www.straitstimes.com/premium...-non-compliance-20150401#sthash.nfQeSIto.dpuf
 

FHBH12

Alfrescian
Loyal
Less savings, 'but still worth the trip'
PUBLISHED ON APR 1, 2015 2:44 AM

BY MELISSA LIN

SINGAPOREANS who frequently shop in Malaysia say they will continue to do so, even though prices of many goods could go up after the new goods and services tax (GST) kicks in today.

This is because the strong Singapore dollar makes shopping across the Causeway at least 30 per cent cheaper than in Singapore, they said. The new GST is 6 per cent.

Popular items that Singaporeans cart back include groceries such as instant noodles and soft drinks, baby items such as diapers, and household essentials like shampoo and toilet rolls.

Yesterday, Malaysians thronged malls and supermarkets, such as the one at Aeon Bukit Indah in Johor Baru, to stock up on essentials such as paper towels, diapers and detergent.

According to a poster at the entrance of the supermarket, essential items such as rice, palm oil and white bread are exempted from the new GST.

Singaporean Lim Peng Soon, 61, is not too concerned about the new tax.

He drives to Johor Baru from his Woodlands home once a week to pick up household items and groceries, such as eggs.

"I know about the tax, but I will continue to buy things in Johor. It will still be cheaper than in Singapore," said Mr Lim, who is self-employed. "Generally, I save at least 30 per cent buying things in Malaysia."

For accounts manager Viki Foo, 39, her trips to Kuala Lumpur once every three months will continue.

She stocks up on baby formula for her 21/2-year-old son.

"I'll still save quite a fair bit, especially with the good exchange rate," she said. Yesterday, $1 could buy RM2.69, compared with RM2.59 a year ago.

When it comes to buying big-ticket items such as laptops, however, Ms Foo said she will be more "cautious" as it may cost at least $100 more with the new tax.

For some Singaporeans, the new GST means fewer trips. Administrator Jennifer Goei, 57, has stopped visiting Johor since the Chinese New Year.

The recent hikes in vehicular fees and tolls have put her off making such trips altogether. "And now, there's this 6 per cent GST," she said.

[email protected]

- See more at: http://www.straitstimes.com/premium...-worth-the-trip-20150401#sthash.izeCUo1O.dpuf
 

snowbird

Alfrescian
Loyal
Just went to take a look at some shopping centres to see what sort of impact on the retail scene on the first day of GST.
Both the City Square and Komtar shopping centre are having visibly thinner crowds, worse in Komtar.
With no substantial increase in the consumer / shopper base (or worse, decrease!), and with more shopping centres coming up all over town, how can the retailers ever survive?
 

Funniman

Alfrescian
Loyal
Many retailers reported very high sales in Jan, Feb and March before GST. Now sales is going to be very low for the next 3 months. So if you guys want to buy, sales ppl sure very happy to service you.
 
Top