Malaysian businesses are required to register for GST when their turnover threshold hits RM500,000. In determining this threshold, income arising from the supply of capital assets of the business which was previously excluded will now fall within the RM500,000 threshold, unless the capital assets are supplied or transferred as a result of the cessation of the business.
This means that a Malaysian business (which was previously not GST registered) that intends to sell an asset which is valued at RM500,000 or more must be GST registered before the sale is executed and account for GST on the sale.
It was also proposed that the GST treatment for free commercial zones and free industrial zones, which will now be collectively referred to as Free Zones, will be streamlined as follows: –
The above changes (among others) are expected to take effect from January 2017.