GST - Goods and Services Tax

General enquiries

Overview

GST will be implemented with effect 1 April 2015 at the rate of 6 per cent. GST will replace the current sales and service tax regime which will be demised upon the introduction of GST.


Impact to HSBC and our customers

As HSBC provides taxable services exceeding the registration threshold, HSBC has registered with the Royal Malaysian Customs Department (Customs) for GST. Consequently, HSBC will impose GST on any taxable services provided to customers in accordance with the requirements of the GST laws.

Whilst certain financial services are classified as an exempt supply and will not attract GST, not all financial services are exempted from GST. For example, fees and commissions in relation to financial services will generally be subjected to GST. Please refer to the respective bank's updated Tariff & Charges for the latest fees and charges which will be uploaded before 1st April 2015.


Find out more about GST

Please refer to the FAQ section for more detailed information on how GST may impact you.

The FAQs will continue to be updated periodically as new information becomes available.

Please note that HSBC is not able to provide any tax advice. Please consult a professional tax advisor in relation to the GST implications to you.


Additional information

Customs has made available more information on GST at www.gst.customs.gov.my which you may refer to. However, HSBC makes no representation as to the accuracy or correctness of the information made available in the Customs' website.


GST registration numbers

The GST registration numbers are as follows:

Entity GST Registration Number
HSBC Bank Malaysia Berhad 001586757632
HSBC Amanah Malaysia Berhad 001655570432
The Hongkong and Shanghai Banking Corporation Limited, Offshore Banking Unit Labuan 001473077248

GST Overview (last update on 27 Apr 2015)

What is GST?

Is GST a new consumption tax? What is the rate of GST and when will it be implemented?

What is GST's scope of coverage?

There are how many types of GST?

What are standard-rated, zero-rated and exempt supplies?

What is meant by 'GST-registered'?

Do all businesses need to be registered under GST?

What is 'valid tax invoice' and why do I need one?

Account Operation

Is GST charged on bank charges, services or other financial products provided by HSBC?

Are deposits or withdrawals from savings, fixed deposit or current account, subject to GST?

(a) The bank charges customers certain fees such as half yearly service charge for current account and fifth cash ATM withdrawal charge. Are these subject to GST? (b)Are there any fees or charges, which will not be subject to GST?

Will I be notified of the fees and charges that are subject to GST prior to the transaction? For example in ATM, branches or online banking, etc.

(a) What is the impact on financial advisory services? (b) Will GST treatment for transaction performed via different channels be treated differently?

What are the electronic services that will be GST exempt?

What is the general formula for calculating GST? Can you provide an example?

Who can I contact if I have any further enquiries on GST in respect of the Bank's products and services?

Remittances

I have paid fees in foreign currency. How will GST be computed and charged?

How will GST be imposed for Foreign Currency Payments made or received on Demand Draft / Telegraphic Transfer?

If GST was reversed for FCY transaction made earlier, will it follow the original exchange rate or the exchange rate on date of reversal?

What is the GST treatment on foreign currency exchange?

Islamic Financing and Provision of Loans/ Financing

Will there be any difference in terms of GST between conventional and Islamic banking products?

Is the provision of loan / financing subject to GST? Will I be charged GST on the interest / profit for my loan / financing?

Are repayments of the principal amount subject to GST?

Is late payment charge / compensation charge on loan / financing subject to GST?

Is early settlement charges imposed by Bank during the lock-in period of home loan / financing subject to GST?

Credit Cards

Will I be charged GST on my credit card transactions?

Currently I pay RM50 Government Service Tax for my credit card and RM25 for each supplementary card. Will this still be applicable under GST?

For transactions that are taxable, is there a way for the tax to be waived e.g. upon request like credit card annual fees?

Most banks waive the annual subscription fee on credit card to make it competitive in the market. Is GST still be imposed on the waived annual subscription fee?

Why is there GST charged on the fee for Cash Instalment Plan and not the interest?

Is GST applicable for Balance Transfer, Cash Instalment Plan, Balance Conversion Plan (Balance Build Products on existing Credit Card) sold to customer?

What type of credit card charges imposed by Bank attracts GST?

Investments and Insurance premiums / Takaful contributions

Are fees charged to unit trust transactions subject to GST?

What is the GST treatment on unit trust income distribution?

Is my capital gain or interests earned from structured investments, bonds and dual currency investments subject to GST?

Is my investment in Structured Investment subject to GST?

Is my investment in Bond/Sukuk subject to GST?

Are insurance premiums / Takaful contributions taxable?

Safe keeping and custodial services

What is the GST treatment on safe keeping and custodial services?

Trade financing

How is GST charged for trade finance products and services?

Designated areas (Labuan, Langkawi and Tioman)

If I use the ATM Services at Designated Area e.g. Labuan, Is there any GST due on the services rendered?

Are services provided from outside Malaysia into designated area subject to GST?

Are services provided by branches in Designated Areas (e.g. Labuan Branch of HSBC Bank Malaysia Berhad) subject to GST?

Tax invoice / credit note / debit note

How will the base fee amount and GST be shown and billed to us?

Why have I not received any Tax Invoice / Debit Note / Credit Note?

What is a Tax Invoice?

What are Credit Notes / Debit Notes?

Whenever I am charged with GST, do I need to report them?

What is the Tax Invoice that I can see in Internet Banking?

Can I request to stop receiving the Tax Invoice / Debit Note / Credit Note?

Can the Tax Invoice, Debit Note and Credit Note be combined into one for customer's easy reference?

The above Frequently Asked Questions ("FAQs") are for general reference only and shall not be capable of creating any contractual commitment on the part of the Bank. While every reasonable care has been taken to ensure the accuracy of the information contained in this document, the Bank does not accept any responsibility or liability (whether arising in contract, tort or otherwise) for any loss, damage and liability arising out of, or in connection with, any use or reliance placed upon this document.
 
Copyright. HSBC Bank Malaysia Berhad, HSBC Amanah Malaysia Berhad and The Hongkong and Shanghai Banking Corporation Limited, Offshore Banking Unit Labuan 2015. All Rights Reserved.

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