Sinar Daily ’s Post

GST 2.0 Is Coming? According to Nanyang Siang Pau, the government is preparing to reintroduce GST (Goods and Services Tax) in the 2025 Budget, with the mechanism and exemption list already finalized, ready for announcement. The implementation is expected by 2026 to help improve the country’s financial position ahead of the 2027 general election. Early market suggestions indicate a proposed 4% rate. When the Goods and Services Tax (GST) 1.0 was introduced in Malaysia, there was a widespread belief that auditors and tax agents were the biggest winners. Many are now echoing the same sentiment with the talks of GST 2.0. But let me tell you, as someone who has been through GST 1.0 – this couldn’t be further from the truth. Firstly, GST 1.0 was highly politicized. While it was meant to create a more transparent taxation system, it faced challenges, especially around reimbursement delays for tax credits. Businesses had to wait for months to receive their rightful claims, causing cash flow issues for many. Secondly, let’s compare GST and SST. Under the Sales and Services Tax (SST), businesses only pay tax at the end of the supply chain, whereas GST taxes each stage of the supply chain. Yes, GST allows input tax credits, but these credits are only useful if they are reimbursed promptly. The delays we faced during GST 1.0 caused more headaches Let me set the record straight—we’re just trying to help businesses navigate these system while ensuring compliance.

Malaysia needs a low-tax, low-regulation competitive and agile economy. Tax reform is central to that, reforming not cutting government spending which some argue is too low. Imposing the disaster of GST would hit everyone with a RM59.8 billion tax bill - RM7,500 for every household in Malaysia. We need new thinking - an e-payments tax is part of that. You can read the debate in the Star Media Group Berhad by Keith Hiew Also my article No Middle Ground to Stupid Taxes he refers to is here at FMT News https://lnkd.in/gdK8HaKz And the e-payments tax suggestion also in FMT News is here: https://lnkd.in/gFa62cXV #taxes #fiscalpolicy #gst #taxcuts Carmelo Ferlito Heng Guie Lee https://lnkd.in/gM5pAYJC

(Economic Focus) The government is still engaging with the relevant stakeholders to finalise details of the high-value goods tax (HVGT), including the scope of goods and associated thresholds. 

The government has collected far less corporate income tax this year, with the Finance Ministry attributing the decline to lower global commodity prices. Corporate income accounts for some 17 percent of the country’s tax revenue, making it the second-largest contributor, just below value-added tax (VAT) at over 25 percent, according to Finance Ministry data. The government saw a 23 percent year-on-year (yoy) decline in corporate income tax collection in the first 11 months of the year, with a total of Rp 289 trillion (US$18.1 billion) collected in the period. From 2022 to 2023, corporate tax collection rose by 15 percent in the same period. “Our state revenue experienced extraordinary pressures until July or August. State revenue from tax and even from customs and excise underwent remarkable pressures since last year,” Finance Minister Sri Mulyani Indrawati said in a press briefing on Wednesday. Read more: https://lnkd.in/gBhPTCBz #business #economic #corporate #tax #revenue #indonesia #thejakartapost

New Tax Article Alert! VAT - Registration Requirements, Compliant Tax Invoice, VAT on Imported Services (VATIS) and VAT Withholding Obligations. Our valued Clients and Readers, we are pleased to share a new tax article under our Tributa publications. Dive into the world of VAT and the current issues and areas that ZIMRA is targeting as well as gain a clear perspective of the overwhelming VAT compliance risk that businesses are exposed to when VAT registration threshold was lowered. The Zimbabwean landscape is changing at a great speed and demands that businesses up the ante in tax compliance. Catch some of these changes in our previous tax article summarising the 2024 Mid-Term Budget Statement. We will continue giving you more interesting and rich tax reads and improve your chance to stay ahead of the complex tax space. Your feedback is greatly appreciated to enable us to continue improving the scope and depth of our articles. For feedback and inquiries, you can reach us on 0776 662 355 or email at advisor@taxadvisoryhub.com. Please like, and repost our posts to reach a wider audience. Mention a colleague in the comments section who may be interested in getting constant tax updates. #Taxation. #Platinum Tax Consultancy. #VAT. #VATIS. #FiscalTaxInvoice. #ZIMRA simon gwenziZimbabwe Revenue Authority (ZIMRA) OfficialE. James

This year’s budget brought some notable changes in international tax matters, as outlined below: Equalisation Levy Changes: The equalisation levy of 2% on e-commerce operators engaged in the provision of supply and services, which was introduced by the Finance Act, 2020, will be withdrawn effective August 1, 2024. However, the equalisation levy at a 6% rate on consideration for certain digital services, such as online advertising (introduced by the Finance Act of 2016), will remain in place. Pillar 2 Rules: The budget did not include provisions for Pillar 2 of the OECD/G20 Base Erosion and Profit Shifting (BEPS) framework. The finance minister indicated that the withdrawal of the equalisation levy is a step towards aligning with Pillar 2 principles. The expectation is set for Pillar 2 rules to be introduced in the February 2025 budget. Presumptive Taxation for Cruise Ships: A new presumptive taxation regime has been introduced for non-residents operating cruise ships. This regime offers certainty on tax treatment to boost the cruise-shipping industry in India. Additionally, income from lease rentals for foreign shipping companies, where the company and the non-resident ship operator are under the same holding company, is tax-exempt. Capital Gains Taxation: The capital gains taxation regime has been simplified and rationalized for residents and non-residents, making it more straightforward and likely efficient. These changes reflect a broader trend towards aligning India's tax policies with international standards and improving the attractiveness of its economic sectors. #indianbudget #mof #equalisationlevy #internationaltax #oecdtax #untax #tiwb #ataf #pronorthmacedonia #incometaxindia

As government seeks to increase Ghana’s tax to Gross Domestic Product (GDP) to about 21% as attained in other jurisdictions from the current 14%, a major threat to this goal is tax noncompliance.  

Here is another important Platinum Tax article on VAT registration, invoice-compliance and Imported services.

The VAT system in Pakistan, primarily implemented as the Sales Tax, faces several complex issues and challenges. Here are some of the most significant ones: Tax Evasion and Informal Economy: Prevalence: Tax evasion is a significant issue in Pakistan. A large portion of the economy operates informally, outside the tax net, which undermines the effectiveness of VAT. Impact: This results in a lower tax base and reduces government revenues. Efforts to widen the tax net have been ongoing but with limited success. Compliance and Administrative Burdens: Complex Procedures: Businesses often find compliance with VAT regulations cumbersome due to complex filing procedures, frequent changes in tax laws, and the need for detailed record-keeping. Cost: The cost of compliance for businesses, especially small and medium-sized enterprises (SMEs), can be high, leading to resistance against registration and proper filing. Refund Delays: Issue: Businesses frequently experience significant delays in receiving refunds for input tax credits, which can strain their cash flows. Reason: Bureaucratic inefficiencies and stringent verification processes contribute to these delays. Coordination Between Federal and Provincial Authorities: Conflict: The existence of both federal and provincial sales taxes leads to jurisdictional overlaps and conflicts. Different tax rates and regulations across provinces can complicate compliance. Lack of Harmonization: There is often a lack of harmonization between federal and provincial tax laws, leading to confusion and increased compliance costs for businesses operating in multiple provinces. Corruption and Lack of Transparency: Impact: Corruption within the tax administration can result in unfair practices, including the manipulation of tax assessments and delays in processing refunds. Solution: Efforts to increase transparency and reduce corruption have been made, but the problem persists and continues to erode trust in the tax system. Policy Inconsistencies: Frequent Changes: Frequent changes in VAT rates, exemptions, and regulations can create uncertainty for businesses, making long-term planning difficult. Policy Alignment: Ensuring that VAT policies are aligned with broader economic goals, such as promoting exports or supporting specific industries, remains a challenge. Addressing these complex issues requires a multifaceted approach, including administrative reforms, technological upgrades, better coordination between federal and provincial authorities, and efforts to broaden the tax base while ensuring fairness and transparency in the tax system #Taxation #Indirecttax #Pakistan #Policy #Tax

Why the pushback by the sub-national governments on the current Tax reform by the Federal Government of Nigeria? The current distribution of VAT proceeds: FG - 15% States - 50% LGs - 35% The 85% that's going to states and LGs are shared using this formula: Equality - 50% Population - 30% Derivation - 20% Proposed distribution of VAT proceeds FG - 10% States - 55% LGs - 35% The FG is to concede 5% to the states The 90% that's going to states and LGs is to be shared using this formula: Equality - 20% Population - 20% Derivation - 60% This proposed heavy loading of the sharing formula based on derivation in the new tax bills from 20% to 60% is causing the dispute understandably. If clear-cut standard operating procedures are demonstrated for each item of consumption to show that derivation can accurately be determined where the goods or services are to be consumed, the more the subnational Governments will buy into the tax reforms specifically VAT. Determining derivation more accurately will require significant changes in how corporations record and remit taxes, specifically VAT.