Mastering Sales Tax Exemption Facilities, up-to-date Updates, Implementation Issues and Health Check

OVERVIEW

Sales Tax since its implementation from 1/9/2018 has gone through various updates via Legislations and Policies. Requirements like Recipient Self Accounting for Imported Services, Sales Tax Credit Systems (formerly known under CJ(P)3), further expansion of Person Exempted from Paying Sales Tax, Revised procedures for sales tax exemption application for purchase from traders, Record Keeping and periodical returns, etc., calls for all Registered and Non-Registered Manufacturers to be fully aware of what are the latest requirements to be complied.

Registered Manufacturers (RM) are entitled to apply for sales tax exemption under the Person Exempted from Paying Sales Tax Order and be eligible to purchase taxable manufacturing inputs materials such as raw materials, components, packing materials and manufacturing aids, free from sales tax when purchased directly from other registered manufacturer or through a third party or import or sub-contract to another RM to partly finished the manufacturing process. These exemptions are subject to certain conditions. Any BREACH of these conditions will be subject to Recovery of Sales Tax, Penalty and Compound by RMCD.

Furthermore, various inventory movement reports also need to be prepared and kept quarterly and other reports need to be furnished to RMCD periodically. Failure to do so may result in the withdrawal of the exemption facilities, penalty and compounds.

OBJECTIVES

  • Understand how to manage the overall Sales Tax exemption concept and facilities to avoid the breaching of terms and conditions.
  • Know what new records need to be kept and reports need to be submitted periodically.
  • Understand the appropriate Sales Tax implementation know how according to Updated Legislations and Customs Policies that happen from time to time.
  • COURSE METHODOLOGY

    • Course notes and lectures.
    • Participative and active, group discussions and hands on exercises.

    WHO SHOULD ATTEND?

  • Business Owners, Company Directors, CEO & COO
  • CFOs, Financial Controllers and Finance Managers,
  • Accountants, Accounts Executives, Accounts Assistants.
  • Freelance Accounting Personnel
  • External and Internal Auditors.
  • Procurement/Purchasing and Logistics Managers
  • Other functional staff engaged in SST matters.
  • COURSE OUTLINE

    Module Content
    Module 1 UP-TO-DATE SALES TAX UPDATES GOVERNMENT BUDGET, RMCD POLICIES AND PROCEDURES CHANGES.
    Module 2 FUNDAMENTAL AND SCOPE OF SALES TAX

  • General Scope of Sales Tax
  • Treatment of goods given out for free.
  • Module 3 REGISTRATION TO BE A REGISTERED MANUFACTURER REQUIREMENTS

  • Threshold determination and what is include and what is exclude in the calculation.
  • Mandatory and should you go or not go for Voluntarily registration
  • Know what is Single Taxable person concept
  • Registration Cancellation Deemed Supplies Vs. Transfer of Going Concern.
  • Responsibilities of a Registered Person.
  • Module 4 SALES TAX MECHANISM AND ITS EXEMPTION FACILITIES

  • 2018 Sales Tax Model
  • Types of exemptions orders:
    • a.Goods exempted from charging sales tax order
      b. Persons exempted from paying sales tax order.
      • Schedule C – Registered Manufacturers and person acting on behalf of manufacturers and its conditions
      • Schedule B – Non- Register Manufacturer on their production of specific sales tax exempted goods and its conditions
      • Schedule A – Other categories of person and its conditions MIDA support requirements for selected items under Sch. A
      • Goods for export Exemptions:
        --> Schedule A and B and C5 criteria.
        --> Documentary requirement for sales overseas and to special area companies.
        --> Export meaning
      c. 20 activities exempted from sales tax registration.
  • Record Keeping and Reporting requirements for Exempted Goods Purchased / Imported under:
    • a. Schedule C1 to C5,
      b. Schedule B item 1-4
      c. Schedule A item 55
      d. Schedule A item 57.
      e. Breach of exemption conditions return.
  • Sales Tax Credit Systems.
  • Drawback facilities.
  • Summary of how does Sales Tax and its Exemption available to different parties, like importers, Exporters, Manufacturers, Governments, Individuals,etc.
  • Valuation for tax purpose for 3rd party and inter-company transactions.
  • Definition of Connected Person
  • Definition of Manufacturing and resolving the dispute of such definition.
  • How to you determine sales tax rate – exempt, 5%, 10% or specific rate.
  • HS code or Customs Tariff Code reading, identification and resolving complications from Real Life Experience of the Trainer.
  • Sales Tax treatment for import and goods movement to and from:
    • a. Designated Areas definition and implications
      b. Special Areas definition and implications
  • Import Services and its filing of returns and payment of the service tax by non-service tax registered person.
  • Module 5 ACCOUNTING ADMINISTRATION

  • Invoice, Debit Note and Credit Note prescribed particulars requirement.
  • Filing of Returns & Payment of Tax
  • Amendment to Returns and filing of supplementary returns
  • Service Tax on imported services and the filing of its returns
  • Transaction classification code in supporting of your returns.
  • Bad Debt Relief and recovered procedures
  • Offences, Compound and Penalties
  • TRAINER’S PROFILE

    Tan Kok Tee has over 40 years of experience in financial, strategic and general management. He has held a variety of leadership and senior management roles in various organizations, the last being Group Chief Executive Officer. More than half of this time are spend in the Manufacturing Marketing & Distribution and services organization, including those with the then Inchcape Timuran Berhad, Metroplex Berhad, Perdana Industries Berhad.

    He is a Fellow member of the Association of International Accountants, UK; Member of the Institute of Public Accountants, Aust.; Member of the Chartered Tax Institute of Malaysia; Member of the Malaysia Associations of Company Secretaries, holds a MBA in Finance from Charles Sturt University, Australia and a Gold Mastery Holder in Reinventing Strategic Planning and Management from the Haines Centre for Strategic Management, sponsored by University of San Diego, USA.

    He is also a Certified Trainer with PMSB’s Train The Trainer Certificate since 2009 and a life member with the Malaysian Institute of Directors.

    Kok Tee has been involved in training and facilitation since beginning 2009. To-date he had conducted about 300 training workshops, of which more about 200 are on GST including GST Accounting for both in-house as well as public, including for Government Authorities, Chamber of Commerce, Government Link Companies, Banks, Malaysian Institute of Accountants, Chartered Institute of Management Accountants, Selangor state Human Resource Development Centre, Negeri Sembilan state Skills Development Centre, NGOs, political party as well as on behalf of various other training providers.

    He also developed delivered an Entrepreneurship program (training) specially for MBA students from GC University, Pakistan in collaboration with Sunway Education Group for period 2010 to 2014. He was also an assessor for the UTAR’s NGO strategic planning program and an invited speaker for the Asian Financial Controller’s Congress in 2009, 2010 and 2011.

    COURSE FEES

    Early bird fee: RM901 per person - Register by 9 October 2019

    Normal fee: RM1,007 per person

    – SBL claimable (Inclusive of lunch, tea breaks, notes, certificate of attendance and 6% SST)

    *Group discount of 10% available (for 3 or more participants from the same company)

    ORGANISER

    Malaysian Export Academy
    No. 86, Jalan BP 7/8,
    Bandar Bukit Puchong,
    47120 Puchong, Selangor.

    Tel : 03 8066 3107
    Fax: 03 8066 6152

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