PETALING JAYA (May 17): Taxation consultants lauded the government’s move of zero-rated GST as it will improve the ease of doing business in Malaysia and lessen the hassle for developers, especially those who have mixed-use developments.
The Associated Chinese Chambers of Commerce & Industry of Malaysia (ACCCIM) head of taxation committee Koong Ling Long said the computation and book-keeping for different categories of GST is complicated and require a lot of technical support, which will eventually increase the cost of business.
“For a developer who has mixed developments, this could be even harder as commercial and residential properties are in different categories,” he told EdgeProp.my.
Koong is also a member of GST Monitoring Committee of the Ministry of Finance and GST Technical Committee of the Royal Malaysian Customs.
For commercial properties which are under the standard rated 6% GST category, developers are allowed to claim the input tax (for the raw material purchased for the construction) from the government as the final GST will be paid by commercial property buyers.
Source: The Edge Property