The Malaysia GST environment continues to evolve, as the Royal Malaysian Customs Department (RMCD) pushes on in refining its rules, processes and policies. Budget 2017 saw various amendments to tighten up the GST Framework, dealing with such matters as the GST treatment with regards to free zones, the recovery of tax from persons leaving Malaysia, an increase in the penalty rate for unpaid taxes, and a change in definition on the time of supply for imported services.
Outside of Budget 2017, one of the more significant developments in the past year has been the GST Audit Framework document published June last year by the RMCD. GST audits has been a hot topic amongst accountants and tax agents of late, especially with the RMCD identifying 50,000 companies that will be subject to the first phase of GST audits.
The GST Audit Framework document discusses GST audits in detail, laying out key information such as the full process of the audit, documents required, and the rights and responsibilities of the auditee.