The document provides information about an upcoming Goods and Services Tax (GST) in Malaysia, including its implementation date of April 1, 2015 at a rate of 6%. It outlines that GST will replace existing sales and service taxes. Healthcare services are discussed, with those provided by government being outside the scope of GST and those provided by private licensed facilities being exempt from GST. The impact on doctors at government hospitals is that they will not be eligible for GST registration if only providing exempt healthcare services, and thus cannot claim GST incurred on items like clinic rental.

1. Goods and Services Tax
[“GST”]
Awareness Session
2 October 2014

2. Page 2
Agenda
1. GST overview
2. Healthcare services
3. GST impact to doctors at RSD hospitals

3. Page 3
GST Update
Key announcements relate to GST in 2014 Malaysia Budget:
„ GST at 6% will be implemented in Malaysia on 1 April 2015
„ Unveil of proposed zero rated goods and services
„ Unveil of proposed goods and services exempted from GST
„ Registration threshold at RM500,000, voluntary registration allowed
„ GST to replace the current sales tax (5% and 10%) and service tax
(6%)

4. Page 4
GST Update
► Various activities undertaken by the government to engage with
businesses, including:
► Enforcement of the Price Control and Anti-Profiteering Act 2011 on 1
April 2011 to prevent profiteering under GST
► Launch of GST portal (www.gst.customs.gov.my)
► Release of more than 70 GST industry, specific and general guides
► Companies can apply for GST registration with effect from 1 June
2014.
► GST Act 2014 was published in the gazette on 19 June 2014
► GST Regulations 2014 was issued on 30 June 2014

5. Page 5
Mechanism of GST
Pays GST on
imports (Input
tax)
Output tax less input tax =
Net GST
Supplier
(GST-
registered)
Customer

6. Page 6
Overview of GST
GST is imposed
on
Importation of
goods (except
covered by
specific relief)
into Malaysia
(GST is charged
on importation)
Importation
of services
into Malaysia
(reverse
charge
mechanism)
Supply of
goods and
services in
Malaysia by a
taxable person
in the course
of business

7. Page 7
Agenda
1. GST overview
2. Healthcare services
3. GST impact to doctors at RSD hospitals

8. Page 8
Healthcare services
„ Healthcare services
„ Healthcare professional
„ Private healthcare facility

9. Page 9
Healthcare services
„ HEALTHCARE SERVICES can be categorized as follows:
► Healthcare services provided by the government are OUT
OF SCOPE (i.e. not subject to GST)
► Healthcare services provided by licensed private healthcare
facilities are EXEMPT FROM GST
► The private healthcare facilities has to be registered or
licensed under the Private Healthcare Facilities and Services
Act 1998 [ACT 586]

10. Page 10
Healthcare services
► Includes:
► Medical, dental, nursing, midwifery, allied health, pharmacy and
ambulance services and any other service provided by a healthcare
professional
► Accommodation for the purpose of providing healthcare services
► Any service for the screening, diagnosis or treatment of persons
suffering from or believed to be suffering from, any disease, injury
or disability of mind or body
► Any service for preventive or promotive health purposes
► Any service provided by any healthcare para-professional
► Any service for curing or alleviating any abnormal condition of the
human body by the application of any apparatus, equipment,
instrument or device or any other medical technology; or
► Any health related services

11. Page 11
Healthcare services
„ Healthcare services has the same meaning
assigned to it under section 2 of the Private
Healthcare Facilities and Services Act 1998

12. Page 12
Healthcare professional and Private
healthcare facility
► HEALTHCARE PROFESSIONAL Includes:
► a medical practitioner , dental practitioner, pharmacist, clinic
psychologist, nurse, midwife, medical assistant, physiotherapist,
occupational therapist and other allied healthcare professional
► PRIVATE HEALTHCARE FACILITY includes:
► Any premises, other than a government healthcare facility, used or
intended to be used for the provision of healthcare services or
health-related services,
► E.g. private hospital, hospice, nursing home, medical clinic, dental
clinic
► The above terms has the same meaning assigned under section 2 of
the Private Healthcare Facilities and Services Act 1998 [ACT 586]

13. Page 13
Types of healthcare services that are exempt
from GST
► Healthcare services provided from licensed private
healthcare facility to another licensed private healthcare
facility
► Licensed private healthcare facility provides traditional
and complementary medicine services
► Licensed private healthcare facility provides healthcare
services to patient in their home
► Licensed private healthcare facility act as a panel clinic to
a company and provides healthcare services in their
panel’s premise
► Ancillary services (e.g. provision of medicine, ambulance
services, medical reports)

14. Page 14
Types of healthcare services that are subject
to GST
► Outsourcing services (e.g. healthcare services provided
by a company or as an individual capacity, laboratory,
imaging)
► Non-related healthcare services (e.g. food catering,
security, laundry, parking)
► Rental or leasing (e.g. operational theatre, medical
equipment, floor space for office or clinics)
► Cosmetic surgery treatment solely for beauty purposes
and does not have any connection to improve the health
► Any supply of goods used as an aid to the patient (e.g.
crutches, wheelchair, hearing aids)

15. Page 15
Agenda
1. GST overview
2. Healthcare services
3. GST impact to doctors at RSD hospitals

16. Page 16
GST impact to doctors at RSD hospitals
Doctor
RSD
Hospital
Patient
Clinic rental
STANDARD RATED
Healthcare services
EXEMPT
Billing

17. Page 17
GST impact to doctors at RSD hospital
► Not eligible for GST registration if making wholly exempt
supplies (i.e. healthcare services)
► If not registered for GST, the GST incurred (e.g. GST
charged by RSD for clinic rental) is not claimable

18. Thank you