SST Deregistration Process in Malaysia
The recently introduced Sales and Services Tax (SST) in Malaysia came into effect beginning 1 September 2018. The SST is a replacement of the previous Goods and Services Tax (GST) in Malaysia which prior to this imposed a 6% tax rate on all taxable goods and services.
The new SST in Malaysia is a single-stage tax system, which means that an amount will be charged on taxable goods that are manufactured and sold by any taxable person(s) in the country. The SST system is set to be a much simpler tax system, and business in Malaysia will be required to register for the SST if their taxable goods and services value is expected to exceed the RM500,000 amount.
SST is imposed at a consumer and manufacturer level, with the tax being imposed on consumers who will be using services which are taxable.
With the SST system, business which were previously registered for GST will be automatically registered should they fulfil the requirement and meet the necessary criteria. However, if your business has been automatically registered for SST and you wish to deregister it for certain reasons, you will be able to do so by submitting your request to the Customs Department.
What You Need to Do to Deregister Your Business for SST
If you would like to deregister your business for SST, you may do so by submitting an SST Deregistration requested to the Royal Malaysian Customs Department. This can be done if you have been automatically registered for SST and your business does not generate any taxable services or is generating an income which is below the RM500,000 threshold. If you would like to close your business, you may also submit an SST Deregistration request.
If you wish to apply for the SST Deregistration process, you will need to provide a letter of authorization to the Customs Department. The reasons for the appeal must include the following:
- Incorrect MSIC code used
- Your business does not hit the RM500,000 mark
- Your business does not supply taxable goods
- Your business does not supply taxable services
- A photo of your retail
- SSM incorporation documents
- Sample of the invoices with description
- Special exemption (FZ/LMW)
- Your audited financial statements
- Management account income tax forms (Form C/P/PT/B/M)
All documents must be submitted in hardcopy format to the Customs Control Station and also emailed to the following address: email@example.com
*Please note that this checklist may vary depending on the Customs Officer in question.