News & Articles GST relief for residents’ security
GST relief for residents’ security
26 Oct 2016
As announced in the 2017 Budget, the Government has realised the importance of having a good guarded area.
We would like to express our gratitude to the Government for providing all registered residents associations with grants of up to RM10,000 for the purchase of security equipment and maintenance of the guarded area.
Moving forward, it may be viable for the Government to provide GST relief under the GST Act 2014 for charges by security companies to residents associations.
A fixed discount could also be extended on guardhouse utilities and fixtures.
Currently, security charges per month may be RM15,000. The GST payable is therefore RM900 a month or RM10,080 per year.
It is not easy for RAs to register for GST because of the registration threshold, quarterly compliance cost and responsibility/liability.
The time and costs incurred to claim the GST is tedious and it would be easier if the security company obtained a GST relief from the Ministry of Finance. This will reduce the rakyat’s burden.
We would like to express our gratitude to the Government for providing all registered residents associations with grants of up to RM10,000 for the purchase of security equipment and maintenance of the guarded area.
Moving forward, it may be viable for the Government to provide GST relief under the GST Act 2014 for charges by security companies to residents associations.
A fixed discount could also be extended on guardhouse utilities and fixtures.
Currently, security charges per month may be RM15,000. The GST payable is therefore RM900 a month or RM10,080 per year.
It is not easy for RAs to register for GST because of the registration threshold, quarterly compliance cost and responsibility/liability.
The time and costs incurred to claim the GST is tedious and it would be easier if the security company obtained a GST relief from the Ministry of Finance. This will reduce the rakyat’s burden.
Source: Thestar.com.my