KUALA LUMPUR: The Goods and Services Tax will not be imposed on rentals of commercial units below RM500,000 a year, says Datuk Seri Najib Razak.
The prime minister said the government had also decided that supply services for all stratified residential houses would be GST-exempt.
He said under subsection 18(2) of the Goods and Services Act 2014, services for owners of low-cost and medium-cost stratified houses are GST-exempt.
â€œThe exemption has been extended to cover all categories of stratified houses, meaning any fees imposed by management bodies and joint management bodies (JMBs) on maintenance and management including sinking fee contributions are exempted from the GST,â€ he said in his written reply to Ng Wei Aik (DAP-Tanjong) today.
Ng had wanted to know whether the GST would be imposed on maintenance and management fees and sinking fund contributions.
Najib, who is also Finance Minister, said the GST will apply if JMBs or management bodies make taxable supplies such as rentals on commercial units exceeding RM500,000 a year.
On Nov 28 last year, several property-related agencies submitted a petition calling for zero tax for maintenance charges, sinking fund contributions and all related contributions or charges payable.
On Jan 5 this year, the Finance Ministry agreed to extend GST exemption from low- and medium-cost properties to all stratified residential properties.-NST