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TAX CODE

1 Government Tax Code

There are 23 tax codes in GST Malaysia and categories as below :



Explanation of Government Tax Codes For Purchases

Tax Code Tax Rate Description

TX 6% Purchases with GST incurred at 6% and directly attributable to taxable supplies.

IM 6% Import of goods with GST incurred.

IS 0% Imports under special scheme with no GST incurred (e.g. Approved Trader Scheme, ATMS Scheme).

BL 6% Purchases with GST incurred but not claimable (Disallowance of Input Tax) (e.g. medical expenses for staff).

NR 0% Purchase from non GST-registered supplier with no GST incurred.

ZP 0% Purchase from GST-registered supplier with no GST incurred. (e.g. supplier provides transportation of goods that qualify as international services).

EP 0% Purchases exempted from GST. E.g. purchase of residential property or financial services

OP 0% Purchase transactions which is out of the scope of GST legislation (e.g. purchase of goods overseas).

TX-E43 * 6% Purchase with GST incurred directly attributable to incidental exempt supplies.

TX-N43 * 6% Purchase with GST incurred directly attributable to non-incidental exempt supplies.

TX-RE * 6% Purchase with GST incurred that is not directly attributable to taxable or exempt supplies.

GP * 0% Purchase transactions which disregarded under GST legislation (e.g. purchase within GST group registration).

AJP 6% Any adjustment made to Input Tax e.g.: Bad Debt Relief & other input tax adjustment.

i. Tax Code : TX This refers to goods and/or services purchased from GST registered suppliers. The prevailing GST rate is 6% wef 1/04/2015. As it is a tax on final consumption, a GST registered trader will be able to claim credits for GST paid on goods or services supplied to them. The recoverable credits are called input tax. Examples include goods or services purchased for business purposes from GST registered traders. ii. Tax Code: IM All goods imported into Malaysia are subjected to duties and/or GST. GST is calculated on the value which includes cost, insurance and freight plus the customs duty payable (if any), unless the imported goods are for storage in a licensed warehouse or Free Trade Zone, or imported



under Warehouse Scheme, or under the Approved Trader Scheme. If you are a GST registered trader and have paid GST to Malaysia Customs on your imports, you can claim input tax deduction in your GST returns submitted to the Director General of Custom. iii. Tax Code: IS This refers to goods imported under the Approved Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS), where GST is suspended when the trader imports the non-dutiable goods into Malaysia. These two schemes are designed to ease the cash flow of Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS), who has significant imports. iv. Tax Code: BL This refers to GST incurred by a business but GST registered trader is not allowed to claim input tax incurred. The expenses are as following: · The supply to or importation of a passenger car; · The hiring of passenger car; · Club subscription fees (including transfer fee) charged by sporting and recreational clubs; · Medical and personal accident insurance premiums by your staff · Medical expenses incurred by your staff. Excluding those covered under the provision of the employee.s Social Security Act 1969, Workmen.s Compensation Act 1952 or under any collective agreement under the Industrial Relations Act 1967; · Benefits provided to the family members or relatives of your staff; · Entertainment expenses to a person other than employee and existing customer except entertainment expenses incurred by a person who is in the business of providing entertainment. v. Tax Code: NR This refers to goods and services purchased from non-GST registered supplier/ trader. A supplier / trader who is not registered for GST is not allowed to charge and collect GST. Under the GST model, any unauthorized collection of GST is an offence. vi. Tax Code: ZP This refers to goods and services purchased from GST registered suppliers where GST is charged at 0%. This is also commonly known as zero-rated purchases. The list as in the Appendix A1 to Budget 2014 Speech. vii. Tax Code: EP This refers to purchases in relation to residential properties or certain financial services where there no GST was charged (i.e. exempt from GST). Consequently, there is no input tax would be incurred on these supplies. Examples as in Appendix A2 Budget 2014 Speech. viii. Tax Code: OP This refers to purchase of goods outside the scope of GST. An example is purchase of goods overseas and the goods did not come into Malaysia, the purchase of a business transferred as a going concern. For purchase of goods overseas, there may be instances where tax is imposed by a foreign jurisdiction that is similar to GST (e.g. VAT). Nonetheless, the GST registered trader is



not allowed to claim input tax for GST/ VAT incurred for such purchases. This is because the input tax is paid to a party outside Malaysia. ix. Tax Code: TX-E43 This is only applicable to GST registered trader (group and ATS only) that makes both taxable and exempt supplies (or commonly known as partially exempt trader). TX-E43 should be used for transactions involving the payment of input tax that is directly attributable to the making Incidental Exempt Supplies. Incidental Exempt Supplies include interest income from deposits placed with a financial institution in Malaysia, realized foreign exchange gains or losses, first issue of bonds, first issue of shares through an Initial Public Offering and interest received from loans provided to employees, factoring receivables, money received from unit holders for units received by a unit trust etc. x. Tax Code: TX-N43 This is only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader). TX-N43 should be used for transactions involving the payment of input tax that is directly attributable to the making Non-Incidental Exempt Supplies. Example for this tax code are your company bought wall paper for your residential apartment rented to others and purchase costs are already included 6% GST, but you are not eligible to claim the amount of input tax as it would be applied directly to make exempt supply (rental of resident apartment). xi. Tax Code: TX-RE This is only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader). This refers to GST incurred that is not directly attributable to the making of taxable or exempt supplies (or commonly known as residual input tax). Example includes operation over-head for a development of mixed property (properties comprise of residential & commercial). xii. Tax Code: GP Purchase within GST group registration, purchase made within a Warehouse Scheme etc. xiii. Tax Code: AJP Any adjustment made to Input Tax such as bad debt relief & other input tax adjustments.



Explanation of Government Tax Codes For Supply

Tax Code Tax Rate Description

SR 6% Standard-rated supplies with GST Charged

ZRL 0% Local supply of goods or services which are subject to zero rated supplies.

ZRE 0% Exportation of goods or services which are subject to zero rated supplies

ES43 * 0% Incidental Exempt supplies.

DS 6% Deemed supplies (e.g. transfer or disposal of business assets without consideration).

OS 0% Out-of-scope supplies

ES 0% Exempt supplies under GST

RS 0% Relief supply under GST.

GS 0% Disregarded supplies.

AJS 6% Any adjustment made to Output Tax e.g : Longer period adjustment, Bad Debt recover, outstanding invoice > 6 months& other output tax adjustments.

i. Tax Code: SR A GST registered supplier must charge and account GST at 6% for all sales of goods and services made in Malaysia unless the supply qualifies for zero rating, exemption or falls outside the scope of the proposed GST model. The GST collected from customer is called output tax. The value of sale and corresponding output tax must be reported in the GST returns. ii. Tax Code: ZRL A GST registered supplier can zero-rate (i.e. charging GST at 0%) certain local supply of goods and services if such goods or services are included in the Goods and Services Tax (Zero Rate Supplies) Order 20XX.Examples includes sale of fish, cooking oil. iii. Tax Code: ZRE A GST registered supplier can zero-rate (i.e. charging GST at 0%) the supply of goods and services if they export the goods out of Malaysia or the services fall within the description of international services. Examples includes sale of air-tickets and international freight charges. iv. Tax Code: ES43



This is only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader). This refers to exempt supplies made under incidental exempt supplies. Incidental Exempt Supplies include interest income from deposits placed with a financial institution in Malaysia, realized foreign exchange gains or losses, first issue of bonds, first issue of shares through an Initial Public Offering and interest received from loans provided to employees also include factoring receivables, money received from unit holders for units received by a unit trust etc. v. Tax Code: DS GST is chargeable on supplies of goods and services. For GST to be applicable there must be goods or services provided and a consideration paid in return. However, there are situations where a supply has taken place even though no goods or services are provided or no consideration is paid. These are known as deemed supplies. Examples include free gifts (more than RM500) and disposal of business assets without consideration. vi. Tax Code: OS This refers to supplies (commonly known as out-of-scope supply) which are outside the scope and GST is therefore not chargeable. In general, they are transfer of business as a going concern, private transactions, third country sales (i.e. sale of goods from a place outside Malaysia to another place outside Malaysia). vii. Tax Code: ES This refers to supplies which are exempt under GST. These supply include residential property, public transportation etc. viii. Tax Code: RS This refers to supplies which are supply given relief from GST. ix. Tax Code: GS This refers to supplies which are disregarded under GST. These supplies include supply within GST group registration, sales made within Warehouse Scheme etc. x. Tax Code: AJS Any adjustment made to Output Tax, Example such as longer period adjustment, bad debt recovered, outstanding invoices more than 6 months & other output tax adjustments.

NOTE : * Applicable to GST-registered businesses that makes both taxable and exempt supplies.

For more information, please refer to GST guide "Partially Exempt Traders and Input Tax Recovery"

available at http://gst.customs.gov.my

http://gst.customs.gov.my/



2 Tax Code in AutoCount Accounting

Purchase Tax Code Listing in AutoCount Accounting

Tax Code Description Tax Acc.

No. Tax

Percentage Govt. Tax

Code

Supply/Purchase: Purchase

AJP_A Input Tax 6% - Adjustment: Annual GST-3010 6 AJP

AJP_APBD Input Tax 6% - Adjustment: AP Bad Debt Recovery GST-3010 6 AJP

AJP_ARBD Input Tax 6% - Adjustment: AR Bad Debt Relief GST-3010 6 AJP

AJP_C Input Tax 6% - Adjustment: Capital Goods GST-3010 6 AJP

AJP_O Input Tax 6% - Adjustment: Others GST-3010 6 AJP

BL Input Tax 6% - Not Claimable GST-9010 6 BL

BL_CX Input Tax 6% – Capital Goods Acquired To Make Exempt Supplies

GST-3010 6 BL

BL_X Input Tax 6% – To Make Exempt Supplies. GST-9010 6 BL

EP Input Tax 0% - Exempted 0 EP

GP Input Tax 0% - Disregarded 0 GP

IM Input Tax 6% – Import of Goods GST-3010 6 IM

IM-GDS Purchase Imported Goods from supplier (Use in conjunction with IM)

0

IM-SVC Purchase Imported Services from supplier. 0

IS_ATMS Input Tax 0% - Imports Under Special Scheme (ATMS) 0 IS

IS_ATS Input Tax 0% - Imports Under Special Scheme (ATS) 0 IS

NR Input Tax 0% - Non-GST supplier 0 NR

OP Input Tax 0% - Out of Scope 0 OP

TX_C Input Tax 6% – Capital Goods Acquired To Make Taxable Supplies

GST-3010 6 TX

TX_I Input Tax 6% – Imported Services. GST-3010 6 TX

TX_S Input Tax 6% – To Make Taxable Supplies (standard rated) GST-3010 6 TX

TX_Z Input Tax 6% – To Make Taxable Supplies (zero rated) GST-3010 6 TX

TX-E43 Input Tax 6% - To make Incidental Exempt Supplies GST-3010 6 TX-E43

TX-N43 Input Tax 6% - To make Non-Incidental Exempt Supplies GST-3010 6 TX-N43

TX-RE Input Tax 6% - Residual Input Tax GST-3010 6 TX-RE



ZP Input Tax 0% - Zero Rated 0 ZP

Sales Tax Code Listing in AutoCount Accounting

Tax Code Description Tax Acc. No. Tax


Code

Supply/Purchase: Supply

AJS_A Output Tax 6% - Adjustment: Annual GST-4010 6 AJS

AJS_APBD Output Tax 6% - Adjustment: AP Bad Debt Relief GST-4010 6 AJS

AJS_ARBD Output Tax 6% - Adjustment: AR Bad Debt Recovery

GST-4010 6 AJS

AJS_C Output Tax 6% - Adjustment: Capital Goods GST-4010 6 AJS

AJS_O Output Tax 6% - Adjustment: Others GST-4010 6 AJS

DS Output Tax 6% - Deemed Supplies GST-4010 6 DS

DS_I Output Tax 6% - Imported Services GST-4010 6 DS

ES Output Tax 0% - Exempt Supplies 0 ES

ES43 Output Tax 0% - Incidental Exempt Supplies 0 ES43

GS Output Tax 0% - Disregarded Supplies 0 GS

OS Output Tax 0% - Out Of Scope Supplies 0 OS

RS Output Tax 0% - Relief Supplies 0 RS

SR_D Output Tax 6% - Disposal of business assets GST-4010 6 SR

SR_S Output Tax 6% - Standard Rated Supplies GST-4010 6 SR

ZRE Output Tax 0% - Zero Rated Supplies (Exports) 0 ZRE

ZRL Output Tax 0% - Zero Rated Supplies 0 ZRL



3 Tax Code Maintenance

The Tax Code Maintenance has been enhanced to allow for user to have an easier time to set-

up the needed tax codes. Instead of manually entering the tax codes needed, the user must use

the Configure Malaysia GST function available in the Tax Code Maintenance window to

configure the Tax Code(s) they need.

GST > Tax Code Maintenance

Click on Configure Malaysia GST

First Time : Clicking the ‘Configure Malaysia GST’ button will start the Tax Code Wizard in which

the user will answer 4 simple questions to determine which Tax Code is needed for their

company.

Click on Configure

Malaysia GST



Click on Next and following all the steps to complete GST Tax Code Configuration

You may need to configure yourself based on your company requirement.

For example as belows:



Click on Supply Tax

Tick NR , ZP

Tick AJP6_ARBD & AJP6_APBD for Bad Debt Relief

Select 350-0000 for Input Tax Account &

Auto Assign to other tax codes

Select 930-0000 for Input Tax

Non Claimable



Click on Save

Select 450-0000 for Input Tax Account &

Auto Assign to other tax codes

Tick AJP6_APBD & AJP6_ARBD for Bad Debt Relief



Tips : you may need to select one of the Purchase Tax and Supply Tax as Default Tax Code

Select SR6_S

Click on Edit

Tick Default

Click on OK

Click on Default



4 Tax Code by Industries (Example)

AutoCount Accounting is compliant set out in Government Tax Guide. Here we are suggest to

maintain GST Tax code according different industries or your company requirement.

A) Tax Code related to Single Supply Industries (Standard Rate )



Code Is

Default?


AJP_APBD Input Tax 6% - Adjustment: AP Bad Debt Recovery 350-0000 6 AJP

AJP_ARBD Input Tax 6% - Adjustment: AR Bad Debt Relief 350-0000 6 AJP

AJP_O Input Tax 6% - Adjustment: Others 350-0000 6 AJP

BL Input Tax 6% - Not Claimable 930-0000 6 BL


TX6_S

Input Tax 6% – To Make Taxable Supplies (standard rated)

350-0000 6 TX YES


AJS_APBD Output Tax 6% - Adjustment: AP Bad Debt Relief 450-0000 6 AJS

AJS_ARBD Output Tax 6% - Adjustment: AR Bad Debt Recovery 450-0000 6 AJS

AJS_O Output Tax 6% - Adjustment: Others 450-0000 6 AJS

SR_S Output Tax 6% - Standard Rated Supplies 450-0000 6 SR YES

B) Tax Code related to Export & Import goods Industries


No. Tax


Code Is Default?






IM Input Tax 6% – Import of Goods 350-0000 6 IM


TX_I Input Tax 6% – Imported Services. 350-0000 6 TX

TX_S Input Tax 6% – To Make Taxable Supplies (standard rated) 350-0000 6 TX YES


AJS6_APBD Output Tax 6% - Adjustment: AP Bad Debt Relief 450-0000 6 AJS



SR_I Output Tax 6% - Imported Services 450-0000 6 SR




ZRE Output Tax 0% - Zero Rated Supplies (Exports) 0 ZRE

C) Tax Code related to Multiple Supply Industries

( Standard Rate , Zero Rate , Exempted and Out of Scope)


No. Tax


Code Is

Default?








OP Input Tax 0% - Out of Scope 0 OP

TX_S


350-0000 6 TX YES







OS Output Tax 0% - Out Of Scope Supplies 0 OS





D) Tax Code related to Capital Goods & Annual Adjustment



Code Is

Default?


AJP_A Input Tax 6% - Adjustment: Annual 350-0000 6 AJP



AJP_C Input Tax 6% - Adjustment: Capital Goods 350-0000 6 AJP



BL_CX

Input Tax 6% – Capital Goods Acquired To Make Exempt Supplies

350-0000 6 BL

BL_X Input Tax 6% – To Make Exempt Supplies. 350-0000 6 BL



TX_C

Input Tax 6% – Capital Goods Acquired To Make Taxable Supplies

350-0000 6 TX

TX_S


350-0000 6 TX YES

TX_Z Input Tax 6% – To Make Taxable Supplies (zero rated) 350-0000 6 TX

TX-E43 Input Tax 6% - To make Incidental Exempt Supplies 350-0000 6 TX-E43

TX-N43 Input Tax 6% - To make Non-Incidental Exempt Supplies 350-0000 6 TX-N43

TX-RE Input Tax 6% - Residual Input Tax 350-0000 6 TX-RE



AJS_A Output Tax 6% - Adjustment: Annual 450-0000 6 AJS



AJS_C Output Tax 6% - Adjustment: Capital Goods 450-0000 6 AJS




SR_D Output Tax 6% - Disposal of business assets 450-0000 6 SR





E) Tax Code related to Partial Exemption



Code Is

Default?


AJP_A Input Tax 6% - Adjustment: Annual 350-0000 6 AJP



AJP_C Input Tax 6% - Adjustment: Capital Goods 350-0000 6 AJP



BL_CX

Input Tax 6% – Capital Goods Acquired To Make Exempt Supplies

350-0000 6 BL

BL_X Input Tax 6% – To Make Exempt Supplies. 350-0000 6 BL



TX_C

Input Tax 6% – Capital Goods Acquired To Make Taxable Supplies

350-0000 6 TX

TX_S


350-0000 6 TX YES

TX_Z Input Tax 6% – To Make Taxable Supplies (zero rated) 350-0000 6 TX

TX-E43

Input Tax 6% - To make Incidental Exempt Supplies

350-0000 6 TX-E43

TX-N43

Input Tax 6% - To make Non-Incidental Exempt Supplies

350-0000 6 TX-N43

TX-RE Input Tax 6% - Residual Input Tax 350-0000 6 TX-RE



AJS_A Output Tax 6% - Adjustment: Annual 450-0000 6 AJS



AJS_C Output Tax 6% - Adjustment: Capital Goods 450-0000 6 AJS




SR_D Output Tax 6% - Disposal of business assets 450-0000 6 SR





Tips : You may have your own tax codes maintenance for your own company.

For Example : Blocked Input Tax (BL)

Click on Configure

Malaysia GST

Click on New Govrt. Tax Code



5 Tax Code Mapping & Calculation in GST-03

Item Calculation

5(a) Local Taxable Amt SR_S+SR_I+SR_D+DS

5(b) Local Tax SR_S+SR_I+SR_D+DS+AJS_ARBD+AJS_APBD+AJS_C+AJS_A+AJS_O

6(a) Local Taxable Amt TX_S+TX_Z+TX_C+TX_I+TX-E43+TX-RE+IM

6(b) Local Tax TX_S+TX_Z+TX_C+TX_I+TX-E43+TX-RE +IM+AJP_ARBD+AJP_APBD+AJP_C+AJP_A+AJP_O

7,8 Net Tax = Supply Tax – Purchase Tax If Net Tax is positive, fill in 7 Else, fill in 8

10 Local Taxable Amt ZRL

11 Local Taxable Amt ZRE

12 Local Taxable Amt ES+ES43

13 Local Taxable Amt RS

14 Local Taxable Amt IS_ATS

15 Tax Suspend = IS_ATS(Local Taxable Amt)*6/100

16 Local Taxable Amt TX_C+BL_CX

17 Local Taxable Amt AJP_ARBD

18 Local Taxable Amt AJS_ARBD

19 Local Tax IF MSIC Code has value, fill in first five large amount of local tax (other MSIC Code fill



in others category) ELSE, fill in Others category

NOTE : In Item 15 , The total amount of GST suspended in a taxable period is declared by

registered entity under Approved Trader Scheme (ATS) in GST return (GST-03)

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