SME Info: Understanding TAX (Part 4)
Tax rebate is deducted from the actual taxed amount. There are two types of tax rebate applicable.
Categories Of Taxes In Malaysia
There are two different kinds of taxes in Malaysia which are a direct and indirect tax. A direct tax is a tax that is levied on a person or company’s income and wealth. The tax is paid directly to the government. Examples of direct tax are income tax and real property gains tax. The statutory body who is in charged with the direct tax is the Malaysia Inland Revenue Board (LHDN).
Meanwhile, indirect tax is referred to as tax excised to a person who consumes the goods and services and is paid indirectly to the government. Examples of indirect tax are Goods and Services Tax, Service Tax and Sales Tax. The government body who is responsible for the indirect tax is Royal Malaysian Customs Department (RMCD).
Sales & Service Tax (SST)
The Sales and Services Tax (SST) legislation came into effect on 1 September 2018 replacing the Goods and Services Tax (GST) Act 2014. SST is a single-stage tax, where the sales tax is charged upon taxable goods manufactured and sold in Malaysia as well as those imported into Malaysia. Service tax is charged on taxable services provided in Malaysia and imported services.
(Credit to Understanding Tax - Tax Act 1967, SMEinfo)