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What are the taxable and non-taxable services in Malaysia? (Part VII)

Taxable persons and services under the Second Schedule of the Service Tax Regulations 1975 are:
Group G: Other service providers
Taxable Persons Taxable Services
Subheading II

2. Operators, government agencies or semi-government agencies, of one or more parking spaces for motor vehicles having a total annual sales turnover of more than RM150,000.
Provision of:
  • parking spaces for motor vehicles where parking charges are imposed;
  • payments to jockeys for valet parking services which form part of parking charges;
Non-Taxable Services
Provision of:
  • compounds imposed by local authorities for late or unpaid parking fees;
  • free parking spaces;
  • motorcycle parking spaces where parking charges are imposed;
  • payments to jockeys for valet servicing your car.
Taxable Persons Taxable Services
3. Courier service providers having a total annual sales turnover of more than RM150,000. Provision of:
  • courier delivery services for documents or parcels not exceeding 30 kilograms each;
  • courier delivery services for documents or parcels from a place outside Malaysia to a place within Malaysia where services is not provided by the same courier company.

    Example: Company X in Malaysia delivers a parcel from London to KLIA. Company Y delivers the parcel from KLIA to Kedah. Service by Company X is not taxable. Service by Company Y is taxable.
Non-Taxable Services
Provision of:
  • courier delivery services for documents or parcels from a place outside Malaysia to a place outside Malaysia (transit) where services is provided by the same courier company;
  • courier delivery services for documents or parcels from a place outside Malaysia to a place within Malaysia where services is provided by the same courier company;
  • courier delivery services for documents or parcels from a place within Malaysia to a place outside Malaysia where services is provided by the same courier company;
  • courier delivery services for documents or parcels from a place within Malaysia to a place outside Malaysia where services is not provided by the same courier company.

    Example: Company A in Malaysia delivers a parcel from Kota Bahru to KLIA. Company B delivers the parcel from KLIA to London. Service by Company A is taxable. Service by Company B is not taxable.


Service tax will be abolished on March 31, 2015 with the implementation of Goods and Services Tax (GST) on April 1, 2015.


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Knowledge Base ID :   1549
Last Reviewed :   July 2, 2014
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