Taxes and Service Taxes – Help?


There’s an old adage that says only 2 things are certain in life: death and taxes. The former you personally experience once, the latter every time money moves around.

For consultant companies like SOGE, we have had to register with the Customs Department so that we can collect service tax, which puts us in the same category as the delightful mamak shop across from our offices.

Service tax is applicable to all our work which will be applicable to an asset in Malaysia. Note that it doesn’t depend on who our client is, but where the ultimate user of our brain power resides. Since business is slow, our total cumulative service tax is about RM3.45 for this quarter.

Anyone know whether service taxes are applicable to assets located in the Thai-Malaysia Joint Development Area (JDA)? This would cover companies like CHOC, CPOC. I think service taxes don’t apply, but I may be wrong.

3 Responses to Taxes and Service Taxes – Help?

  1. wishoffshore says:

    Dear Sir,

    JDA for CPOC & CHOC they categories for withholding tax for service within JDA or Outside JDA..

    Tax is applicable for the custom of port of entry..

    For example , EPCC Topside job done in Malaysia .. so , malaysian custom will apply .

    If consultant job done in thailand land or malaysia land and no activity done at site JDA . so , tax apply for malaysia or thai ruling.

    For example , Offshore Pipeline Contractor done an engineering in KL , so no such withholding tax shall be hold client , but all offshore JDA work line vessel , topside , pipeline will be aply withholding tax. this is my experince between contractor and CPOC. but MTJDA also will having a tax charge for CPOC and CHOC.

  2. Wata says:

    wishoffshore: Thank you. I’m sure that you have a lot of information in your comment. I have some trouble understanding it. So, to cut to the chase: if I do engineering studies for CTOC/CHOC, will I need to pay service tax? I am not moving any physical assets from Malaysia/Thailand to JDA. From your last paragraph, it seems that the answer is ‘no’.

  3. Jabbathehutt says:

    The government is the hidden partner in every business. That’s what my tax lecturer used to say.

    If you evade tax, you’re cheating your partner.

    A good perspective.

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