“Designated Areas” (DA) means Labuan, Langkawi and Tioman.
“Special Areas” (SA) means any free zone, licensed warehouse and licensed manufacturing warehouse and Joint Development Area.
Information technology is the use of any computers, storage, networking and other physical devices, infrastructure and processes to create, process, store, secure and exchange all forms of electronic data.
Service tax will be charged at the point of services rendered.
Provision of all types of ITS excluding:
(i) The provision or sales of goods in connection with the provision of the ITS;
(ii) Provision of ITS in connection with:
(a) Goods or land situated outside Malaysia; or
(b) Other than matters relating to (a) outside Malaysia.
Service provider who provides ITS can be any individual, company, statutory bodies or government agencies where the place of business in Malaysia.
ITS provider within DA and within SA is not subject to service tax if the service provider’s principal place of business is in DA.
Foreign ITS company that provides services to client in Malaysia is not subject to service tax.
ITS is subject to service tax which includes:
(i) Develop and provide the software
(ii) Develop and provide the computer system
(iii) Maintenance of data, system or software
(iv) Creation and maintenance of webpage
(v) Update or renewal of data, system or software
(vi) Charge on usage of cloud services
(vii) Data centre services
(viii) Subscription of data
(ix) Security of data, system or software
(x) Administrative fee for data, system or software
(xi) Advisory or consultation for data, system or software
(xii) Advisory or consultation for system development
ITS is not subject to service tax which includes:
(i) Maintenance of physical goods, computer, hardware and server
(ii) Charge on storage of hardware and server
(iii) Security of hardware and server
(iv) Leasing or rental of computer, hardware and server
(v) Service provided by call centre
A registered person is responsible to :
(i) Charge service tax on his taxable services,
(ii) Issue invoices and receipts with specific particulars,
(iii) Submit service tax return SST-02 electronically and pay service tax before due date,
(iv) Keep proper records with regards to his business.
Q : Is the webpage vendor services subject to service tax?
A : The ITS from the vendor to client is subject to service tax.
Q : A registered ITS company in Pahang has a branch in Labuan (DA) and providing ITS services within Labuan. Is the ITS subject to service tax?
A : The branch in Labuan (DA) which provide ITS within Labuan is not subject to service tax.
Q : A registered ITS company in Johor Bahru providing ITS within Langkawi. Is the service subject to service tax?
A : ITS within Langkawi (DA) is not subject to service tax.
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Edited by: 浪子
Bibliography
Royal Malaysian Customs Department. (2018). Guide On Information Technology Services. Retrieved from https://mysst.customs.gov.my/assets/document/Guide%20On%20IT%20Services.pdf
SST - Guide on Information Technology Services
Reviewed by 浪子
on
August 31, 2018
Rating:
Reviewed by 浪子
on
August 31, 2018
Rating:
