Customs to release GST guidelines for stratified properties

The Royal Malaysian Customs Department (RMC) will issue the guidelines on goods and services tax (GST) for stratified properties, following its meeting in February with the Ministry of Finance (MOF) as well as property related professional bodies.

According to National Home Buyers Association (HBA) secretary-general Chang Kim Loong, the RMC is still finalising the guidelines.

“If the government is going to implement GST in April 1, they better get the guidelines available before the GST implementation,” added Chang.

He revealed that the meeting in February aimed to discuss GST’s impact on stratified developments, following a petition sent by The Royal Institution of Surveyors Malaysia, HBA, the Malaysian Institute of Professional Property Managers, as well as the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia.

The petition, which represent around six million parcel occupiers and owners of about 15,000 stratified development areas within West Malaysia, proposes for the amendment of the GST Act 2014.

Meanwhile, the enforcement of the Strata Management Act (Act 757), which replaced the Building and Common Property (Maintenance and Management) Act 2007, will likely be announced in June, said Chang.

“The Strata Management Act has already been passed in 2013, except there were some teething problems over the regulation, so now the strata management regulation has already been finalized by the Attorney-General’s chamber,” he said.

“We understand that the implementation will be some time in June this year.”

In a statement, the Urban Well-being, Housing and Local Government Minister said the implementation of Act 757 will have a significant and positive impact for millions of residents of strata-title buildings.