Beware of blocked GST import tax credit

Posted on : 22-03-2015 | By : sabah today | In : News

March 22, 2015
Alor Setar: KOTA KINABALU: If you or your company are registered for GST, you have to take note of that certain input tax credit will be disallowed or blocked by the Customs on certain purchases, regardless of whether or not they can be attributed to a taxable supply.
Blocked input tax items include the purchase or lease of a passenger motor car not used wholly for the purposes of business. The Customs on checking may stipulate conditions which must prove that a vehicle is used wholly for the purposes of business.
These include (but are not limited to) the vehicle is not taken home at night or during weekends by your employees and the vehicle should display the name of the firm or business. A lot of people will think that the Customs will not have the time or enough personnel to check on such cases.
Others include recreational or sporting club subscriptions, entertainment expenses (except for those incurred in relationship to existing customers or employees), medical or personal accident insurance, medical expenses for employees and other family benefits.
The ability to claim for GST suffered on purchases of goods and services is a fundamental feature of GST that should reduce the cost of doing business in theory.
Conditions to claim input tax include that the business claimant is a taxable person, the claim is supported by a valid tax invoice which must be issued under the legal name of the business, and the goods and services acquired are not blocked or subject to any input tax restriction.
An invoice is a notice of an obligation to pay. A tax invoice can be issued in addition to an ordinary invoice or as a replacement for an ordinary invoice.
A tax invoice substantiates the amount of GST charged and consequently the input credits that a business or entity may be able to claim.
Without a valid tax invoice, registered entities will not be able to recover the GST included in the price paid for goods and services they acquire for use in carrying out their businesses.
Tax invoices are generally issued when the services are performed or payment has been received.
A person cannot recover input tax credit when they make exempt supplies.
Your GST registration number is required to be quoted on all tax invoices that are sent to customers.
Similarly, tax invoices received by a GST registered entity should contain the GST registration of the issuer of the documents.
If you are a GST registered entity, you are required to submit a GST return to the Customs based on your taxable period. For annual turnover of RM5 million and above, the taxable period is one month. For annual turnover of less than RM5 million, the taxable period is three months.
For example, you must ensure that the Customs receive your return not later than one month after the end of your prescribed taxable period.
For example, Customs must receive the GST return for the month ending April 2015 by the last working day of May 2015. Remember that in Sabah, May 30 and 31 are normally Harvest Festival Holidays.
You can submit the GST return through electronically, by posting to the GST processing centre or by hand furnishing to the stipulated GST centre.
The payment of GST payable can be made by electronic fund transfer, cheques, bank drafts, money order or postal order.
In your return, you will indicate the total value of your local Malaysia sales, exports and purchases from GST-registered entities, GST collected and GST claimed for that accounting period.
If you have not performed any services in the period and have no input tax credits to recover or output tax to declare, you must still complete all boxes on the return forms as ‘zero’ or ‘nought’.
You must still submit a ‘nil’ return by the due date.
(Source: Daily Express)
March 22, 2015
Alor Setar: KOTA KINABALU: If you or your company are registered for GST, you have to take note of that certain input tax credit will be disallowed or blocked by the Customs on certain purchases, regardless of whether or not they can be attributed to a taxable supply.

Foreign investors’ vote of confidence on Malaysia

Posted on : 20-03-2015 | By : sabah today | In : News

20 MARCH 2015
KUALA LUMPUR: Foreign investors remain optimistic about the country’s economic and business prospects despite Fitch Ratings’ possible downgrade of Malaysia’s sovereign rating.
Malaysian-German Chamber of Commerce and Industry (MGCC) executive director Alexander Stedtfeld said the chamber’s recent survey found almost all of the respondents said Malaysia’s economy is satisfactory or good for the German businesses.
More than half anticipate their businesses to grow and only 8.3 per cent see their situation to be worsen.
“This is a clear indication that German companies will not reduce their investments but rather increase their engagement in Malaysia,” Stedtfeld said.
“We also see a constant influx of new investments, bringing Germany up to the fourth largest investor in 2014.
“Especially encouraging is that among the newcomers there are many German small-and-medium enterprises who are confident in Malaysia’s attractiveness as an investment destination,” he told Business Times.
Without downplaying the influence of macroeconomic factors relevant for Malaysia’s credit rating, Stedtfeld said MGCC does not see a shift in the overall attractiveness of the country for German companies.
“We see a strong commitment of the Malaysian government to a prudent financial management, which is for example reflected by the introduction of the goods and services tax from April 1 2015 or in the ongoing reduction of subsidies,” he said.
He added reducing the reliance on revenues from oil and gas, broadening the tax base and balancing the costs of social infrastructures will have additional positive effects on Malaysia’s economy.
Japan External Trade Organisation (Jetro) Kuala Lumpur managing director Akira Kajita said said Japanese manufactures and services sectors are mainly watching real business markets like Malaysian’s consumer demands and world market demands rather than financial market fluctuations.
“That’s why I do not think the downgrade will have any effects on Japanese companies’ direct investmentz in Malaysia because there is still strong demand in Malaysia and no observation of clear deterioration of investment environment, which include laws, infrastructures and labours,” he said.
“I believe Malaysia will be still attractive after a minor downgrade,” he added.
Kajita said in general, sovereign rating affects the financial market such as government bonds, stocks and foreign exchange.
“So, Japanese financial institutions including investment funds may change their investment plan if there is a downgrade,” he said.
(Source: The Borneo Post)
20 MARCH 2015
KUALA LUMPUR: Foreign investors remain optimistic about the country’s economic and business prospects despite Fitch Ratings’ possible downgrade of Malaysia’s sovereign rating.

Working together on oil royalty

Posted on : 18-03-2015 | By : sabah today | In : News

March 18, 2015
CM moots cooperation between Sarawak, Sabah in asking for higher stakes in petroleum industry, tourism promo
KOTA KINABALU: Sarawak and Sabah can work together in requesting for higher oil and gas royalty and more participation in the industry from Petronas, says Chief Minister Datuk Patinggi Tan Sri Adenan Satem.
He was responding to the press when asked to comment on possible support from Sabah in matters relating to his request for higher oil royalty percentage after closing a four-day High Performance Team Retreat for senior officers of Sarawak’s civil service at the Pacific Sutera, Sutera Harbour, here yesterday.
“I do not wish to tell Sabah what to do. That is your (Sabah government’s) business. I’m concerned only with Sarawak. (But) I’m sure Sabah would want the same thing, isn’t it?” he said.
Adenan added that negotiations between the state government and Petronas on higher oil royalty and higher participation in the industry were still ongoing.
“Petronas had been kind enough to allocate at least RM2.1 billion worth of contracts to Sarawak companies, RM50 million for corporate social responsibility (CSR) programmes, and establishments of technical schools.
“There is no agreement on royalty yet, but we will be pursuing the matter,” he said.
Touching on the annual retreat which was led by State Secretary, Tan Sri Datuk Amar Mohd Morshidi Abdul Ghani, Adenan said, “This retreat is aimed at improving the services rendered by the civil service, especially on matters relating to implementation of government policies, enforcement of laws, and new approaches in administration.”
Adenan was on his first official visit to Sabah since his appointment as chief minister.
“I’ve met with your (Sabah) Chief Minister and discussed common concerns, greater collaboration between Sabah and Sarawak, especially in the field of tourism,” he said.
Meanwhile, speaking at a welcoming dinner hosted by the Sabah government on Monday to mark this visit, Adenan said he was impressed with Sabah government’s timber management and how it has managed to turn things around for the better.
“We ought to follow your example in the timber industry.
“I was briefed by your Forestry Department about the state’s timber industry this afternoon. In past years, Sabah’s timber industry was one big mess, I am sorry to say that but now all that is gone as a lot had been done and it is well regulated. You have protected your jungles very well,” he said.
Regaling the guests with his witty remarks, Adenan suggested that Sabah and Sarawak start a tourism package that features Mount Kinabalu and Mulu Caves.
“We can make it very attractive for tourists. We must also ensure that the word Borneo is kept and used (in promotions) as foreigners are more familiar with the word,” he said.
Adenan also spoke of his awe at the number of tourists he saw in the state capital and how well Sabah’s tourism industry was doing.
This, he said, could be attributed to the number of flights landing in Sabah, something which Sarawak hoped to be able to emulate.
“I want to increase the number of flights to Sarawak so that we can be a friendly competitor to Sabah. I also want to create more natural attractions in Sarawak, like Danum Valley and the Sepilok Orang Utan Rehabilitation Centre,” he said.
Adenan also pointed out that being chief minister of Sarawak and Sabah was different than the Menteri Besars in Peninsular Malaysia.
He pointed out that with the size of both states and the spread of population, the responsibility of running both states was quite heavy to handle.
“We have more autonomous powers. Knowing Musa and knowing myself, we can do it,” Adenan said,
Sabah Chief Minister Datuk Seri Musa Aman was also at the dinner.
In his speech, Musa said Adenan’s visit strengthened existing ties and camaraderie between Sabah and Sarawak.
It also provided opportunities to explore further cooperation in politics, economy and social aspects to benefit the people of both states, he said.
“As neighbouring states, we share many similarities and compatibility from many aspects, including history, culture and socio-economy among others. I believe there are potentials and room for cooperation that we can explore and benefit from together,” he said.
“Guided by your vast experience in politics, I am confident that through your leadership and guidance, Sarawak and her people will achieve more in terms of development and prosperity,” he added.
Musa said the Sabah government welcomed and supported the efforts and early steps taken by Adenan on several issues on the welfare of the people, especially in Sarawak.
Musa expressed hope that both state governments could continue to work together for the welfare of the states and people.
(Source: The Borneo Post)
March 18, 2015
CM moots cooperation between Sarawak, Sabah in asking for higher stakes in petroleum industry, tourism promo
KOTA KINABALU: Sarawak and Sabah can work together in requesting for higher oil and gas royalty and more participation in the industry from Petronas, says Chief Minister Datuk Patinggi Tan Sri Adenan Satem.

S’wak CM hails Sabah’s policies

Posted on : 17-03-2015 | By : sabah today | In : News

March 17, 2015
Kota Kinabalu: Sarawak wants to emulate Sabah’s policies on forestry and wildlife conservation as well as tourism, which its Chief Minister Tan Sri Adenan Satem said Sabah has done quite well under Datuk Seri Musa Aman’s leadership.
Speaking at the welcoming dinner in conjunction with his inaugural visit to the State after his appointment as Chief Minister, Adenan said Sarawak should emulate Sabah’s forestry policy.
“Sabah’s timber industry used to be in a big mess but now it is well regulated and managed. We ought to follow your footsteps in this matter,” said Adenan, who recently declared war on illegal logging and froze permits for new timber concessions – measures which were introduced by Musa soon as he became Sabah CM a decade ago.
He also said Sabah’s wildlife conservation policy was something that Sarawak was interested to emulate such as the rehabilitation of the orang utan in Sepilok, Sandakan.
Adenan said Sabah’s Danum Valley was another example of excellence in terms of conservation that Sarawak would definitely be looking at.
“I want to create another Danum in Sarawak and compete with your Danum,” he said at the dinner in Shangri-la’s Tanjung Aru Resort and Spa, Monday. Adenan is on a two-day official visit to the State.
One thing that Sarawak would not follow Sabah, he said, was “to allow so many outside people to occupy the state, that we will not follow” that was met with laughter from the floor.
He was referring to the State’s illegal immigrant problem which Musa inherited from previous administrations.
He said there was no necessity for Sarawak to have its own Royal Commission of Inquiry (RCI) and that he sympathised with Deputy Chief Minister Tan Sri Joseph Pairin Kitingan who have his work cut out for him as chairman of the working committee on foreign migrants in Sabah.
It’s understandable, he said, as the problem faced by Sabah was compounded by its proximity with the Philippines.
“So we want to get away as far as we can from that … Sarawak also have some problem with Indonesian Kalimantan but not that much,” he said.
Adenan also said that the Chief Ministers of Sabah and Sarawak have greater autonomous power than the other state chief executives, as well as due to the fact that Sabah and Sarawak are bigger in size.
He said despite the existing bond and cordial relationship between Sabah and Sarawak, the relationship must continue to be nurtured everyday.
Adenan also spoke about his early days after taking over from Tun Taib Mahmud who had been Sarawak’s Chief Minister for more than 30 years.
“It is a very long time, basically one generation. Whenever you mention CM in Sarawak he is Taib Mahmud,” he said.
A few months ago, he said he was at a function and he asked the State Secretary “where is the CM?” but was responded by a shocked State Secretary “you are the CM.”
(Source: Daily express)
March 17, 2015
Kota Kinabalu: Sarawak wants to emulate Sabah’s policies on forestry and wildlife conservation as well as tourism, which its Chief Minister Tan Sri Adenan Satem said Sabah has done quite well under Datuk Seri Musa Aman’s leadership.

Downward trend in dengue cases since operation

Posted on : 16-03-2015 | By : sabah today | In : News

March 16, 2015

Kota Kinabalu: There has been a downward trend in the number of dengue cases since the “Operation Mega Dengue” was launched by the Sabah Health Department on March 1.

State Health Director Dr Christina Rundi, who disclosed this Sunday, said the weekly figures reported during the operation were lower compared to other weeks.

King: Be wary of IS doctrines

Posted on : 10-03-2015 | By : sabah today | In : News

March 10, 2015

KUALA LUMPUR: Yang di-Pertuan Agong Tuanku Abdul Halim Mua’dzam Shah has called on Malaysians to be wary of propaganda by militant groups and urged them to adopt the spirit of moderation (wasatiyyah) as a way of life.

Biodiesel programme to maintain palm oil’s long-term prognosis

Posted on : 09-03-2015 | By : sabah today | In : News

March 09, 2015

Kuala Lumpur: Although the price outlook for palm oil in the medium term looks mixed, a policy switch to boost the biodiesel programme will very much maintain its long-term prognosis.

The successful implementation of the biodiesel programme in palm oil producing countries would offset the high inventory, subsequently firming up prices.

UEC issue should not be perceived as political: Tan

Posted on : 09-03-2015 | By : sabah today | In : News

March 09, 2015

Alor Setar: Gerakan Vice President Datuk Seri Raymond Tan said the call for the Federal Government to recognise the Unified Examination Certificate (UEC) must be viewed from the perspective of enhancing the nation’s human resource pool.

Musa: Practise prudent spending

Posted on : 04-03-2015 | By : sabah today | In : News

March 4, 2015

KOTA KINABALU: Sabah Chief Minister Datuk Seri Musa Aman has advised all state and federal administrations in Sabah to practise prudence in expenditure when carrying out their respective responsibilities.

Business boost expected with Chinese consulate

Posted on : 27-02-2015 | By : sabah today | In : News

February 27, 2015

KOTA KINABALU: Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) anticipates increased bilateral exchanges of business trade activities, education and cultural sectors with the setting up of a Chinese consulate in Kota Kinabalu.

PM: Don’t view lightly climate change, global warming issues

Posted on : 26-02-2015 | By : sabah today | In : News

February 26, 2015

PUTRAJAYA: Prime Minister Datuk Seri Najib Tun Razak yesterday warned that climate change and global warming can no longer be viewed lightly.

He said rainfall patterns in Malaysia had changed and the country now faced prolonged draughts so much so there was water supply crisis in some states in the middle of 2014 and at the end of the year, continuous heavy rain resulted in some of the worst floods in decades with loss of lives and destruction of property.

RM30 mln loans for Chinese hawkers

Posted on : 25-02-2015 | By : sabah today | In : News

February 25, 2015

KOTA KINABALU: The government will launch a RM30 million fund to provide loans for Chinese hawkers nationwide on April 2.

Minister in the Prime Minister’s Department Datuk Mah Siew Keong, who oversees hawkers’ associations, said the fund is aimed to assist hawkers, especially petty traders who did not have supporting documents to take loan from banks.

Year of Goat will be better for all

Posted on : 18-02-2015 | By : sabah today | In : News

February 18, 2015

KOTA KINABALU: The Year of the Goat, according to Feng Shui consultant Jeanette See, will be a better one for everyone as it is blessed with all the five elements, namely water, earth, fire, wind and metal.

Don’t use racial issues for political and personal gains – Gerakan

Posted on : 16-02-2015 | By : sabah today | In : News

February 16, 2015

KOTA KINABALU: Racial issues should never be used for political gains. Neither should it be used for personal gains, Gerakan Sabah liaison chief Datuk Gordon Leong said.

“I think everybody should put in the effort to prevent racial issues from rearing its ugly head and not use the issues for political or personal gains,” he stressed.

Malaysia saw six per cent growth in 2014

Posted on : 13-02-2015 | By : sabah today | In : News

February 13, 2015
KUCHING: The Malaysian economy registered a higher growth of 5.8 per cent in the fourth quarter of 2014 (4Q14) compared with 5.6 per cent in 3Q14.
Bank Negara Malaysia (BNM) in a statement yesterday said the stronger growth was driven by private sector spending as domestic demand remained the anchor of growth in the fourth quarter, mainly on account of improvement in private sector activity.
“Private investment expanded at a faster pace of 11.2 per cent in 4Q14 compared to 6.8 per cent in 3Q14, driven by capital spending in the manufacturing and services sectors.
“Private consumption registered a stronger growth of 7.8 per cent in 4Q14 against 6.7 per cent in 3Q14 supported by stable labour market conditions and continued wage growth,” BNM said.
Nonetheless, BNM noted public consumption expanded at a more moderate pace of 2.7 per cent in the fourth quarter compared to 5.3 per cent in 3Q14 due to slower growth in both emoluments and supplies and services.
It added public investment, however, continued to decline, albeit at a slower pace of 2.1 per cent in the fourth quarter against a bigger contraction of 8.9 per cent in 3Q14 following a smaller contraction in spending on fixed assets by the federal government.
On a quarter-on-quarter (q-o-q) seasonally adjusted basis, the central bank said the growth momentum increased to two per cent in 4Q14 from 0.9 per cent in 3Q14.
For the whole of 2014, BNM said the country’s economy grew by six per cent.
Meanwhile, on the supply side of the economy, the central bank noted growth was sustained by major economic sectors, supported by trade and domestic activities.
The central bank revealed that growth in the services sector was underpinned by expansion across all sub-sectors.
“The construction sector remained strong, driven mainly by non-residential and residential sub-sectors, while the mining sector registered a stronger growth due to higher crude oil production.
“The manufacturing sector continued to expand, supported mainly by the export-oriented industries.
“However, the agriculture sector recorded a contraction due to lower palm oil production caused by the floods in the eastern states of Peninsular Malaysia,” the central bank said.
On another note, BNM said the inflation rate, as measured by the annual change in the Consumer Price Index (CPI), averaged lower at 2.8 per cent in the fourth quarter compared to three per cent in 3Q14.
The central bank explained that the decline was mainly attributed to lower inflation in the food and non-alcoholic beverages category (2.7 per cent) against 3.2 per cent in 3Q14, which reflected the decline in the prices of fresh meat and fresh seafood during the quarter.
For the whole of 2014, the central bank said the inflation rate averaged 3.2 per cent compared with 2.1 per cent in 2013.
As for the foreign exchange market, BNM said the movement of the ringgit and other regional currencies in the fourth quarter were driven by external developments.
The central bank said overall, the ringgit depreciated by 6.4 per cent against the US dollar during 4Q14.
It added the ringgit also depreciated against the Australian dollar (-0.1 per cent), the pound sterling (-2.2 per cent), the euro (-2.3 per cent), and all regional currencies over the same period.
Nonetheless, BNM observed that the ringgit appreciated by 2.3 per cent against the Japanese yen.
Moreover, the central bank said between January 1 and February 10 this year, the ringgit depreciated against the US dollar by 2.4 per cent.
BNM noted the ringgit also depreciated against the pound sterling (-0.3 per cent) and Japanese yen (-3.2 per cent), but appreciated against the euro (4.7 per cent) and Australian dollar (2.2 per cent).
Against regional currencies, BNM said the ringgit broadly depreciated by between 0.1 per cent and 3.3 per cent.
“Besides growing concerns on the prospects of global growth, regional currencies also faced depreciation pressure due to the strengthening of the US dollar, which was driven by the expectations of interest rate normalisation by the Fed amid the recovery in the US economy.
“The ringgit, however, depreciated more than other regional currencies, especially in December, following heightened market concerns on the impact of the sharp fall in oil prices on the Malaysian economy, particularly on the government fiscal position,” BNM said.
(Source: The Borneo Post)
February 13, 2015
KUCHING: The Malaysian economy registered a higher growth of 5.8 per cent in the fourth quarter of 2014 (4Q14) compared with 5.6 per cent in 3Q14.
Bank Negara Malaysia (BNM) in a statement yesterday said the stronger growth was driven by private sector spending as domestic demand remained the anchor of growth in the fourth quarter, mainly on account of improvement in private sector activity.