understanding and managing gst implementation for insurance and

THE MALAYSIAN INSURANCE INSTITUTE (35445-H)
No 5, Jalan Sri Semantan Satu, Damansara Heights 50490, Kuala Lumpur
Tel : 03-2087 8882 Fax : 03-2093 9287
Website : www.insurance.com.my
EDUCATIONAL SERVICE PROVIDER
OF THE YEAR 2012
PROFESSIONAL SERVICE PROVIDER
OF THE YEAR 2007
UNDERSTANDING AND MANAGING GST IMPLEMENTATION
FOR INSURANCE AND TAKAFUL COMPANIES
INTRODUCTION
WHO SHOULD ATTEND
The implementation of the Goods and Services Tax (GST) will come into
operation on 1st April 2015. The mechanism of GST may look simple on
paper, its impact on businesses can be significant. It can be complicated
in certain cases and for certain industries or businesses. Companies
need to budget for cost of implementing GST, manage cash flow
as GST is paid on an accrual basis, determine the necessary changes
required for existing documentation, analyze the capabilities of existing
accounting system, understand transitional issues on supply of goods
and services, train employees, impact on pricing of sales and supplies,
legal implications of existing long-term contracts ect. If companies
do not manage GST implementation effectively and efficiently it shall
erode the margins.
CFO, Accountants and Key Finance Personnel
Managers, Executives, Officers,
from Accounts, Finance, Administration
& Human Resource Department
DURATION
2 days
DATE
23 to 24 September 2014
VENUE
MII City Centre
Suite 6.0W, 6th Floor, Wisma Sime Darby,
Jalan Raja Laut, 50350 Kuala Lumpur, Malaysia
COURSE OBJECTIVES
- To explain the concept and mechanism of GST based on proposed
laws and guidelines issued by Customs Department of Malaysia.
- To prepare Insurance companies how to manage GST implementation
effectively.
- Assist Insurance Companies to meet GST compliance obligations.
Enquiries
Please visit us online
www.insurance.com.my or contact Tel: +603-2087 8882
Azizi (ext. 317 / [email protected]), Shawal (ext. 321 / [email protected])
Understanding And Managing GST Implementation For Insurance And Takaful Companies
Venue : MII City Centre, Wisma Sime Darby
Date : 23 to 24 September 2014
COURSE OUTLINE
1. What is GST?
2. Why GST?
a. Government’s View
b. Economist’s View
3. GST Model/Concept
4. How does GST work?
a. GST scope
b.Supply
• Goods
• Services
• Import& Export
• Time of Supply
1. Time of Supply Rule
2. What is Basic tax point?
3. Events before Basic Tax Point.
4. S11(5) – 21 days Rule
• Value of Supply
c.Business
• Definition
• Business Test
• Deemed Business
• Non business
d.Taxable person
• Who is liable to register?
• Do you need to register for GST?
• How to calculate sales turnover to
determine whether your business has
reached the threshold for compulsory
GST registration?
• Type of registration: Registration
of individual or sole proprietor or
partnership, group registration for
a group of companies, registration
of divisions or branches, voluntary
registration, registration of a single
taxable person
• What are the advantages or
disadvantages if you are not
registered? Should you volunteer to
register for GST?
• What is GST registration number?
• What are the fines and penalties for
late registration?
• When is the effective date of
registration?
• What are the responsibilities and
obligations after the GST registration?
e. In Malaysia
• Meaning
• Place of Supply.
• What is Designated Area?
• Import?
• Export?
5. Input Tax
a. What is input tax?
b.Mechanism to claim input tax
c. Allowable input tax
d.Criteria for claiming input tax
e.Non allowable input tax (Blocked input
tax)
f. Apportionment of input tax
g.De Minimis Limit
h.Refund of input tax
i. Repayment of input tax
• Bad debts Relief
• Input Tax relating to registration
j. Input tax claim on specific cases
6. Accounting for GST, Adjustment and
Partial Exemption
a. Adjustment to input tax and output tax
b.Partial Exemption
• What is apportionment?
• Partial exemption meaning
• Apportionment
1. Standard Method
2.Others
c. De Minimis Rule
• The rule
• Rationale
d.Longer period adjustment / Annual
Adjustment
e. Capital Goods Adjustment
7. GST Return
a. Tax invoice
• What is Tax Invoice
• Importance of a Tax Invoice
• Issuance of Tax Invoice
• Non-Issuance of Tax Invoice
• Tax Fraction
• Tax Inclusive
• Types of Tax Invoice
• Full Tax Invoice
• Simplified Tax Invoice
1. Input Claim on simplified Tax Invoice
2. Cash Register / point of Sales Receipts
• Tax Invoice for Mixed Supplies
• Other Document as Tax Invoice
1. Self-Billed Invoice
a. Who Can Issue Self Billed Invoice?
2. Document Issued by Auctioneer –
Deemed Tax Invoice
• Tax invoice and Supply Given Relief
b.Invoice in Foreign Currency
c. Proforma Invoice
d.Tax invoice for Importation of Goods
and Services
e. Production of Invoice by Computer
f. Invoice for Flat rate Scheme (FRS)
g. Invoice for Group companies
h.Credit Note and Debit Note
• Your Debit Note, Supplier Credit Note
– Which one superior?
8. Record keeping
a. Sec 36 – Duty to keep record
b.By who and why?
c. Record keeping by non taxable person
d.Failure to keep records
e. What are records?
f. Category of preserving records
g.Types of records
• Relating to registration
• Relating to business activities
• Relating to accounting
• Relating to taxation
• Relating to electronic form
• Others
h.When I must start keeping record?
i. Method of preserving records
j. Record on GST Summary Sheet
k. Regarding Bad Debts Relief Claim
l. What is Accounting basis for GST?
m.What is taxable Period?
9. GST Treatments on Insurance and
Takaful
a. Takaful Fund
b.Insurance Fund
c.Loans
d.Indemnity Payments and Settlements
e. Deemed Input Tax Credit in Relation to
Cash Payment
f.Compulsory Third Party (CTP) Motor
Vehicle Insurance
g. Multiple Insured Parties
h.Recovery of Cash Payment
i. Cash Payment Involving Excess Clause
j. Cash Payment Involving Hire Purchase
Agreement
k. General Reinsurance Contracts
l. Indemnity Related to Damaged or
Stolen Property
m.Supply of Goods by the Insured to the
Insurer/Takaful Operator (Surrender of
goods)
n.Disposals by Insurer/Takaful Operators
of Goods Surrendered Under an
Insurance Claim
o. Life Insurance and Family Takaful
Settlements
p.Insurance/Takaful on International
Transportation of Goods and Passengers
q.Insurance/Takaful Services Relating to
Designated Areas (Labuan, Langkawi or
Tioman)
r. Offshore (Labuan) Insurance/Takaful
Companies
s. Mixed Supplies and GST Treatment
10. Guide on Insurance and Takaful
a. Intermediaries for Insurance or Takaful
Products
b.
GST treatment on disbursements
relating to insurance or takaful agents
c. Other Insurance and Takaful Ancillary
Service Providers
d.Input Credits
e. Capital Goods Adjustment (CGA)
f.Self Billing on Commission from sale
of Insurance Contracts and Takaful
Contracts
g.Time of Supply for premiums and
commission
h.Transitional rules
i. Supply of Insurance / Takaful Spanning
GST Implementation
j. Insured Events before the Appointed
Date
k. Relief of Tax on Specific Insurance
Services Spanning Implementation
Date
11.Specific issues affecting Insurance or
Takaful
a. Premium refunds
b.Investment Linked Policies
c.Recovery of Medical Expenses from
Agents / Policyholders
12. Potential Issue
a. Cash Flow requirement
b.Full Time staff responsible for GST
compliance
• Recording
1. Correct way of recording
2. Filing of documents
• Timing
1. Invoicing
2. Submission of Return
3.Payment
4. Update to date GST info
Enquiries
Please visit us online
www.insurance.com.my or contact Tel: +603-2087 8882
Azizi (ext. 317 / [email protected]), Shawal (ext. 321 / [email protected])
Understanding And Managing GST Implementation For Insurance And Takaful Companies
Venue : MII City Centre, Wisma Sime Darby
Date : 23 to 24 September 2014
Trainers Profile
SANTHANASAMY SUBBIAH
Santhanasamy Subbiah has more than 30 years of experience in the field of financial and management accounting
practices that encompasses of Insurance, Banking, Manufacturing, Education, Security, Plantation, Shipping and
Freight Forwarding. He was also with the Ministry of Works involved in special projects funded by the World Bank.
Besides being in the corporate world he has lectured MBA programme for the following Universities:- Open University
Malaysia, University of New Castle Australia, Herriot Watt University UK, Asia Pacific International University and was
the Dean for the School of Accounting and Finance with a local University.
He joined the finance division of South East Asia Insurance and spear headed the budget team and prepared the first ever budget in the
history of the company. His other tasks include that of the submission of Cash Flow and Asset Movement Statement to Bank Negara Malaysia.
He was one of the advisors for the automation and implementation of the accounting systems (Powercom) in the company.
His achievements, among others include that of the successful implementation of the accounting system in iCIMB Bank. He was the architect
to draw up the Chart of Accounts, Pricing Models, Responsibility Centers and Internal Controls. Santhanasamy was the man setup the entire
Finance Division of iCIMB that involved in the Bank Back Office Outsourcing Operations. These achievements have stood the test of time and
adhere to good corporate governance and regulatory requirements. He has also worked closely with Price WaterHouse on matters pertaining
to Indirect tax on behalf of iCIMB and contributed valuable inputs during the meeting with MOF when GST was first conceived in 2005.
He has also conducted number of seminars on Investment Appraisal, Capital Budgeting, Best practices of Accounts Payable, Accounts
Receivables, Beyond Budgeting, Working Capital Management, World Class Finance Practices, Strategic Management, Balance Scorecard etc.
He clients include that of Petronas, LUTH, Sabah and Sarawak State Agency, Boustead Holdings, and many more.
Santhanasamy holds an MBA majoring in Finance from University Putra Malaysia. He is a member of the Chartered Accountant of Malaysia,
Chartered Management Accountant of UK, an Associate Member of the Malaysian Institute of Management. He is a Certified Trainer of HRDF
and a MIA speaker.
Enquiries
For more information please contact us at +603-2087 8882 and speak to
Mr. Azizi (ext 317) or Mr. Shawal (ext 321) or e-mail to [email protected]
Understanding And Managing GST Implementation For Insurance And Takaful Companies (Registration Form)
Venue
Date
Fees
Closing Date
MII City Centre, Wisma Sime Darby
23 to 24 September 2014
RM480*
12 September 2014
* The fee is discounted so that more participants can benefit from this course.
A. Company / Organization Details
Name of Company / Organization :_________________________________________________________________________________________
Address :_____________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
Name of Contact Person : Mr / Ms :_________________________________________________________________________________________
Tel :__________________________ Fax :______________________________ Email :_____________________________________________
B. Participant Details (Note : If the space provided is inadequate, you may attach details of your additional participants in separate list)
1.Mr/Ms :________________________________________________ NRIC No / Passport No: _______________________________________
Email :_________________________________________________ Designation : _______________________________________________
2.Mr/Ms :________________________________________________ NRIC No / Passport No: _______________________________________
Email :_________________________________________________ Designation : _______________________________________________
3.Mr/Ms :________________________________________________ NRIC No / Passport No: _______________________________________
Email :_________________________________________________ Designation : _______________________________________________
4.Mr/Ms :________________________________________________ NRIC No / Passport No: _______________________________________
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5.Mr/Ms :________________________________________________ NRIC No / Passport No: _______________________________________
Email :_________________________________________________ Designation : _______________________________________________
C. Payment Details (Please tick (√) in the appropriate box)
Cash Payment
Enclosed is a Cheque / Bankdraft / Money Order no. __________ for RM _________ made payable to the Malaysian Insurance Institute.
Direct Bank In to MII account : 2-64160-00004670
RHB Bank Bhd, Lot No G-01, Ground Floor, Bangsar Shopping Centre Office Tower Jalan Maarof, Bangsar, 59100 Kuala Lumpur, Malaysia.
Telegraphic Transfer in USD to MII account : 6-14165-00000321
RHB Bank Bhd, Lot No G-D1, Ground Floor, Bangsar Shopping Centre Office Tower Jalan Maarof, Bangsar, 59100 Kuala Lumpur, Malaysia.
Please charge RM ________________to my credit card.
VISA
MASTER
Card number :
Expiry date : ________________
Cardholder’s signature : ________________
Cancellation Policy
•
•
•
•
All cancellations & refund request must be in writing/fax and must be received by the Institude before closing date.
Request for refunds carry a RM240 administrative charge.
Cancellation after closing date will not be eligible for any refund. However, substitute participant(s) is/are always welcome
If, for any reason, the programme is cancelled, The Malaysian Insurance Institute will refund the registration fee. However, the Institute will not be
responsible for any travel, hotel accommodation or other costs incurred.
MII practices a non credit policy. As such, all companies & individual are required to make payment 1 week before the commencement of
the course.
________________________
Signature & Company Stamp
Enquiries
Please visit us online
www.insurance.com.my or contact Tel: +603-2087 8882
Azizi (ext. 317 / [email protected]), Shawal (ext. 321 / [email protected])