One of the key factors contributed to establish the economy of Malaysia to be the third largest in the Southeast Asia and designated relatively open and state-oriented is the innovation and growth of the corporate and commercial laws respectively. The involvement of the government, private and public companies, GLCs and many other entities in the corporate and commercial transactions further assisted to stimulate the economy of Malaysia.
We believe that the involvement of legal practitioners in the corporate and commercial sector is extremely critical so as to support the government, private and public companies, GLCs and many other entities.
Our team of associates are well experienced, knowledgeable, skilful, and diversify in various areas of corporate and commercial legal practice. Other than that, our team of associates is also able to provide creative solutions on various corporate issues for our treasured clients. The team of our associates advises clients in various kinds of corporate and commercial arrangements for instance distributorships, dealerships, joint ventures, licensing and regulatory compliance, supply, collaboration, franchising, and consortium arrangements.
Our range of services:
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Dear Valued Clients,
Following the national fiscal (Budget 2024) announcement, the proposed Service Tax (ST) rate will be increased from the current rate of 6% to 8% with effect from 1 March 2024, on selected taxable services including the legal services sector.
At this point, Azmi & Associates (“the Firm”) has outlined a tentative approach to the proposed increase in ST, pending further clarifications and implementation guidelines from the relevant Ministry and the Royal Malaysian Customs Department.
During this period, the Firm reserves the right to update or modify the information as deemed necessary.
1. Effective Date
The anticipated effective date for the implementation of the new tax rate (8%) is set for 1 March 2024.
2. Transitional rules for the proposed increase in Service Tax rate
a. Service Tax at 6% is applicable on taxable services provided before 1 March 2024; Service Tax at 8% is applicable on taxable services provided post 1 March 2024.
b. Taxable services spanning 1 March 2024:
• Service Tax at 6% for the portion of taxable services provided before 1 March 2024
• Service Tax at 8% for the portion of taxable services provided post 1 March 2024
Should you have any queries or require further clarification on this matter, please feel free to reach out to us. We highly value our client relationships and are dedicated to ensuring a seamless transition through these changes.
Corporate Communications, Azmi & Associates – 16 February 2024
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