Who is online?
In total there are 2 users online :: 0 Registered, 0 Hidden and 2 Guests


[ 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
Directors’ fees EmptyFri Jul 03, 2015 9:34 am by joseph

» Industrial Diesel
Directors’ fees EmptyFri Jul 03, 2015 9:11 am by joseph

» ICT industry
Directors’ fees EmptyFri Jul 03, 2015 9:10 am by joseph

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

» Conditions to Claim Input Tax
Directors’ fees EmptyMon Jun 29, 2015 3:12 pm by joseph

» Additional industry code
Directors’ fees EmptySun Jun 28, 2015 5:53 pm by joseph

» Sales Commisions
Directors’ fees EmptyFri Jun 26, 2015 7:44 pm by Poon1

» Advance payment for services not rendered yet
Directors’ fees EmptyThu Jun 25, 2015 4:13 pm by joseph

» Turnover Below RM500,000 subequent to GST registration
Directors’ fees EmptyWed Jun 24, 2015 6:16 pm by joseph

» Consigment Sales
Directors’ fees EmptyWed Jun 24, 2015 6:00 pm by joseph

» GST Accounting Entries
Directors’ fees EmptyTue Jun 23, 2015 10:21 pm by joseph

» Advance payment received from Customer
Directors’ fees EmptyTue Jun 23, 2015 5:45 pm by joseph

We have 351 registered users
The newest registered user is emtng

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

Display results as :

Rechercher Advanced Search

Directors’ fees

Go down

Directors’ fees Empty 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?


Posts : 11
Join date : 2015-01-02

Back to top Go down

Directors’ fees Empty 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


Posts : 277
Join date : 2014-09-25

Back to top Go down

Back to top

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