KETERANGAN AM 3 Tajuk Mesyuarat - Malaysian Institute of ...

NO. PERKARA KEDUDUKAN / TINDAKAN
7.10
SERVICE TAX CHARGEABLE ON
EMPLOYMENT SERVICES
Usul oleh FMM
The Second Schedule of the Service Tax
Regulations 1975 on Other Service Providers;
(i) stipulates that all types of employment
services are taxable excluding:
(i) Employment services in the form of
secondment of employees or supplying
employees to work for another person for a
period of time; or
(ii) Employment services for employment outside
of Malaysia.
It has been brought to FMM's attention that the
Customs Department has now started imposing
service tax on Employment/Outsourcing companies
supplying workers to manufacturing companies for
a period of time as stipulated in their contracts. The
imposition of service tax on the manufacturing
companies will significantly increase the cost to
manufacture goods in the country and detrimental
to the manufacturing sector.
Recommendation :
It is clearly stipulated in the Second Schedule of the
Service Tax Regulations 1975 on Other Service
Providers (i) that employment services in the form
of secondment of employees or supplying
employees to work for another person for a period
of time is not taxable.
The Customs department should review their
decision at imposing service tax on
employment/outsourcing companies supplying
workers to the manufacturing sector for a period of
time.
If it is the policy of the government to tax
outsourcing activities then the law should be
amended/ changed to reflect this clearly rather than
Customs seeking to impose an interpretation of the
existing law that does not specify outsourcing as a
taxable service.
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Tindakan : Bahagian Cukai Dalam Negeri
Negeri dan Stesen akan menangguhkan
Pelesenan Cukai Perkhidmatan bagi
perniagaan membekalkan pekerja secara
kontrak atau sementara sehingga keputusan
muktamad dibuat oleh Ketua Pengarah Kastam.