Credit Card Service Tax Principal

4 what is not included in the scope of the tax.

Credit card service tax principal. Imposition of service tax. Service tax redemption can only be made once it is reflected in the cardmembers card statement. Back in 2010 an annual service tax was imposed on card holders which saw a drop in the number of cards in circulation. It should be noted that the amount is less compared to the old service tax model.

The rate of service tax to be imposed is rm 25 per card per year or part thereof for the issuance or renewal of a principal or supplementary credit card or charge card. Under the old service tax model a service tax of rm50 a year on each principal credit card and charge card and a service tax of rm25 a year on each supplementary card was implemented. Debit card electronic money e g. At the moment there are at least 10 2 million credit cards and charge cards being used in malaysia.

The rate of service tax to be imposed is rm25 per card per year or part. Under sst 2 0 the rm25 charge will be applied to each credit or charge card regardless if it is a principal or supplementary card. For credit cards the service tax is also applicable for co branded credit card and corporate card. Service tax regulations 2018 covers the provision of credit card and charge card services.

A service tax of rm25 is imposed upon activation of new principal or supplementary cards and on the anniversary renewal date every year including on existing cards in issuance as at 1 september 2018 i e. Zing card and prepaid card 5 how much should i pay for the tax. It should be noted that the amount is less compared to the old service tax model. Cardmembers are allowed to redeem limited to the number of principal and supplementary cards under his her account.

The sst regime which replaced gst will see service tax being imposed at 6 per cent and sales tax being imposed at a range of 5 per cent to 10 per cent. All principal cardholders will have to pay rm25 yearly for each credit or charge card issued to him her while supplementary cardholders will have to pay rm25 yearly for each credit or charge card issued. The amount of service tax payable will be posted in your. Principal card rm25 per card per year supplementary card rm25 per card per year 3.

Rate of service tax 15. The tax stood at rm50 for principal credit cards and rm25 for supplementary cards. In budget 2010 it was announced that starting from jan 1 a service tax of rm50 a year would be imposed on each principal credit or charge card and rm25 a year on each supplementary card. Under the old service tax model a service tax of rm50 a year on each principal credit card and charge card and a service tax of rm25 a year on each supplementary card was implemented.

The scope of tax does not include.