NEW TAX CODE

On 29 August 2016, RMCD has announced Guide "Accounting Software Enhancement Towards GST Compliance (Revised as at 1 August 2016)" has been removed from their website.

http://gst.customs.gov.my/en/ib/SiteAssets/Notice/ANNOUNCEMENT_REMOVAL_GUIDE_ACCOUNTING.pdf


The Royal Malaysian Customs Department (RMCD) has uploaded the revised Guide onAccounting Software Enhancement towards GST Compliance. 

Here is the summary of the new tax code.

New Tax code for Purchase

Tax code	Description	Example
TX-CG	Purchase with GST incurred for capital goods acquisition.	Purchase of fixed assets with GST (claimable) (i.e. office equipment, machinery, commercial vehicle, factory building…)
RP	Relief Purchase under GST legislations.	Purchase of RON95, Diesel and other relief supply

New Tax code for Purchase (Mixed supplier)

Tax code	Description	Example
TX-FRS	Purchase under Flat Rate Scheme.	Purchase from a person who qualifies for Flat Rate Schemes
TX-NC	GST incurred but chooses not to claim the input tax.	Tax invoice incomplete information
TX-ER	Input tax allowed on the acquisition of goods or services by local authority or statutory body.	Expenses incurred on SSM e-info
IM-CG	Import of goods with GST incurred for a capital goods acquisition.	Purchase of fixed assets from oversea.
IM-RE	Import of goods with GST incurred that is not directly attributable to taxable or exempt supplies (Residual input tax).	-

(Note : Tax code TX-ER, IM-CG & IM-RE have been removed from Guide on 2 March 2017) 

NEW TAX CODE FOR SUPPLY

Tax code	Description	Example
ZDA	Exportation of goods from Malaysia to Designated Area (Pulau Langkawi, Labuan, & Pulau Tioman) which are subject to zero rated supplies.	Export goods to Langkawi.

NEW TAX CODE FOR SUPPLY (mixed supplier)

Tax code	Description	Example
SR-MS	Standard-rated supplies under Margin Scheme	Used car dealer sale of the car under the margin scheme
SR-JS (Rename to  SR-JWS on 2/3/17)	Standard-rated supplies under Jeweller Scheme	-
ES-GU	Exempt supplies of land for general use (Land used for burial, playground or religious building)	-
OS-ER	Out-of-scope supplies for Enforcement and Regulatory functions.	Compound issue by DBKL
OS-OV	Out-of-scope supplies between overseas country with other overseas country	-
OS-OVN	Supplies made outside Malaysia which would not taxable if made in Malaysia.	-
OS-OVT	Supplies made outside Malaysia which would be taxable if made in Malaysia.	-
NS	Matters to be treated as neither a supply of goods nor a supply of services, and no GST chargeable.	Sales of assets under Transfer of Going Concern (TOGC), sale of goods or services within the designated area.

(Note : Tax code OS-ER & OS-OVN have been removed from Guide on 2 March 2017) 

Change in tax code description

Old tax code	New tax code	Description
ES43	IES	Incidental exempt supplies under GST legislations
TX-N43	TX-ES	Purchase with GST incurred directly attributable to non incidental exempt supplies.
TX-E43	TX-IES	Purchase with GST incurred directly attributable to incidental exempt supplies.

RMCD has uploaded new revised the “GUIDE ON ACCOUNTING SOFTWARE ENHANCEMENT TOWARDS GST COMPLIANCE” as at 5 February 2018 to replace the previous guide.

The following tax codes have been combined as ZP:-

a) EP: Purchase in relation to exempt supply under GST legislation
b) RP: Relief Purchase under GST legislation
c) GP: Purchase transactions which disregarded under GST legislation.

The new guide withdraws the tax code NP and reinstate tax code IM-CG.
From the taxable period January 2018 onwards, item 15 of GST-03 return has been amended from "Total Value of GST Suspended under Item 14" to "Total Value of Other Supplies".
The total value of other supplies includes out of scrap supplies and disregarded supplies.