Who is online?
In total there are 3 users online :: 0 Registered, 0 Hidden and 3 Guests

None

[ View the whole list ]


Most users ever online was 25 on Thu Mar 12, 2015 5:00 pm
Latest topics
» This forum no longer accept new postings
Fri Jul 03, 2015 9:34 am by joseph

» Industrial Diesel
Fri Jul 03, 2015 9:11 am by joseph

» ICT industry
Fri Jul 03, 2015 9:10 am by joseph

» Input Tax (Passenger Car for business purpose)
Mon Jun 29, 2015 5:25 pm by joseph

» Conditions to Claim Input Tax
Mon Jun 29, 2015 3:12 pm by joseph

» Additional industry code
Sun Jun 28, 2015 5:53 pm by joseph

» Sales Commisions
Fri Jun 26, 2015 7:44 pm by Poon1

» Advance payment for services not rendered yet
Thu Jun 25, 2015 4:13 pm by joseph

» Turnover Below RM500,000 subequent to GST registration
Wed Jun 24, 2015 6:16 pm by joseph

» Consigment Sales
Wed Jun 24, 2015 6:00 pm by joseph

» GST Accounting Entries
Tue Jun 23, 2015 10:21 pm by joseph

» Advance payment received from Customer
Tue Jun 23, 2015 5:45 pm by joseph

Statistics
We have 351 registered users
The newest registered user is emtng

Our users have posted a total of 570 messages in 139 subjects
Search
 
 

Display results as :
 


Rechercher Advanced Search


Directors’ fees

View previous topic View next topic Go down

Directors’ fees

Post by Edin on Mon Jan 26, 2015 10:15 am

Hi everybody,

Another issue which is not clear for me is Directors’ fees, according to "Panel Decision 3", Directors’ fees is subject to GST under certain conditions (person appointed as a director: in his personal capacity, on his expertise, on his personality)

So open questions will be:
1. If Directors’ fees is subject to GST, whether those directors which fall under this category have to register them self with Custom if their Director fee is more than RM 500,000 / year?
2. If a director from those certain groups make less than RM 500.000 / year, is Directors’ fees still taxable under GST or not?
3. If directors are registered with Custom, will they issue to company any tax invoice
4. Can company claim such GST paid on director's fee.

Anybody to share opinion on this matter?

Edin

Posts : 11
Join date : 2015-01-02

Back to top Go down

Re: Directors’ fees

Post by joseph on Mon Jan 26, 2015 10:59 am

Any person whose annual taxable turnover exceeds RM500,000 is liable to be registered for GST purpose.

It is important to differentiate whether the director is under contract of service or contract for service.

Contract of service
- under employment and entitled to EPF, SOCSO, annual leave etc
- due to his position as the company’s manager, became a director (executive director) of the same company or its subsidiaries - not subject to GST

Contract for service
- acting as independent contractors
- normally acting as non-executive director
- is carrying on a business
- subject to GST if annual taxable threshold exceed RM500,000
- this Director must issue a Tax Invoice to the company for the company to claim Input Tax credit

joseph

Posts : 277
Join date : 2014-09-25

Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum