Gold Exporters obtain exemption from new Tax regime

KUALA LUMPUR (Scrap Monster): The Malaysian Finance Ministry today clarified that raw material for gold jewellery exports will be exempted from the Goods and Services Tax (GST). To become eligible for exemption from tax, the jewellers should get themselves registered under relevant schemes approved by the government.

The Malaysian government promotes various schemes to support the domestic jewellery exporters to compete in international market. These schemes are intended to enable local jewellers to stay competitive without increasing the prices and to help them find market for their product exports. The jewellery exporters with an annual turnover of at least RM 500,000 are being urged to register for GST compliance.

After registration, the businesses can apply for a GST Accounting Software Grant of RM 1,000. The Customs Department officials will also provide free training on using the GST online system to apply for various schemes including the Approved Jewellers Scheme (AJS), Approved Trader Scheme (ATS) and Approved Toll Manufacturer Scheme (ATMS).

The exporters can opt from schemes such as the AJS, ATS and ATMS depending on the nature of business. For example, exporters who register under AJS will be exempted from paying GST for gold with at least 99.5% purity and silver and platinum with at least 99.9% purity.

According to latest trade data, the value of jewellery exports were down to RM 3.4 billion during the initial six months of the year, when compared with the exports of RM 3.7 billion during the corresponding six-month period in 2013. The yearly jewellery exports by Malaysia had totaled RM 7.2 billion last year.