Updated Guide on Professional Services Updated Guide on Professional Services Updated Guide on Professional Services

The Royal Malaysian Customs Department (“RMCD”) has issued the updated Guide on Professional Services as at 21 September 2021.  Please click on the above header link for a copy of the Guide at the MySST portal.

One notable update is the Service Tax treatment on office holders/ directors’ fees, as follows:

* Based on previous Guide on Professional Services as at 6 October 2020

Note 1: Where the BIK is paid to the director as part of the remuneration package/ perquisite/ incentive for the directors

Note 2: Where the BIK is paid by the company directly to the service providers who provided the services to the director

Note 3: Refer to the Service Tax Guide on Disbursement and Reimbursement for the definition of disbursement

Based on the above, companies and their directors may wish to revisit the types of payment made/ received, and assess whether changes to the Service Tax treatment adopted are necessary.  If yes, the basis and timing of change should also be documented properly. 

Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.

Should you have any questions or require further clarification, please do not hesitate to email or contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organization.