Misa
4/21/2015 Malaysia’s government just rolled out a new Good and Services Tax (GST) on 01 April 2015. I have read an article about how this new GST impacts Malaysia property in “Property Guru” this morning. The below is my summary: Under the previous tax system, basic building materials, like cement, bricks, were not subjected to sales tax (under Sales Tax Act of 1972). Under the new tax system, all building materials are subjected to 6% GST. It is believed that the developers will pass these additional costs to home buyers. This will push up the prices by about five to 10 percent. For Industrial and Commercial property, there are several significant impacts. Rental income is subjected to 6% GST; landlords have to revise their leasing agreement; for some, additional administrative cost needs to put aside to collect GST. Last not but least, prices of the upcoming projects will definitely be increased to pass on the additional cost to the buyers.
Apr 18, 2015 2:51 AM