Implementation of GST has been scheduled for April 1, 2015.
Research house IDC Malaysia is predicting that the implementation of Goods and Services Tax (GST) systems and solutions will emerge as a key driver for growth in the Malaysian Enterprise Application market as local businesses must either upgrade or replace their legacy system with a system that is GST compliant.
“With GST coming into effect in the early part of 2015, we are predicting that there will be a scramble from businesses to be fully GST ready in line with government regulations and the implementation,” IDC Malaysia research manager Chin Jun Fwu told Business Circle.
Malaysian Prime Minister Dato’ Sri Najib Razak (pic) recently reaffirmed that there is no turning back for the implementation of GST that is scheduled for April 1, 2015. He also expected the number of companies that are GST-registered, which now stood at 120,000, to increase to 200,000 by year-end.
At his keynote address at the recent Malaysia Institute of Accountants (MIA) International Accountants Conference, he asked professional accountancy bodies to ensure that GST was successfully implemented, and that MIA could play a pivotal role in the implementation part of GST.
“We believe that professional accountancy bodies, acting in the public interest, must play an active role – and that industry groups and governments need to work together to ensure that regulation is effective and efficient,” he said.
On the system side of things, Chin (pic) said that “the requirements for GST implementation are standard but not every organisation is structured the same.”
“Issues of compliance can be made even more complicated depending on configuration of not only systems, but also existing procedure,” he added.
“It should be kept in mind that GST is not a departmental issue, but an organisation-wide exercise. The entire issue of compliance cannot simply be left to the accountants, auditors, and IT staff and must be treated as a whole,” he further added.
The Royal Malaysian Customs Department has as early as the beginning of 2014 prepared its online system for GST tax submission and the issuing of GST refunds. In order to interface correctly with the system, Malaysian companies must put in place correct GST records and processes.
On the Malaysian enterprise applications market front, Chin believes that there will be a 6-8% of total revenue growth in 2014 compared to the previous year.
Business Circle had previously reported that GST is the best tax system around according to an expert and that a well-implemented GST can help the poor.