Reimbursement vs Disbursement SST Malaysia

Reimbursement vs Disbursement SST Malaysia

Reimbursement vs Disbursement SST Malaysia

Let's clear up your confusion in 3 minutes.

Definition

Disbursement:

The claimant as an agent made recovery of payment on behalf of customer.

Reimbursement:

The claimant as a principal made recovery of an expense to customer.

Remarks: Claimant is SST registered person who pays the expenses on behalf customer.

Treatment of service tax - Disbursement

  • Not subject to service tax.

  • Claimant is acting as an agent to customer.

  • No additional charges and mark up for the payment.

  • Service provider shall bill to customer of claimant.

  • Customer is aware of who the service provider is and the actual cost incurred but not claimant.

  • Service provider’s bill and claimant’s bill are being issued to customer altogether.

Treatment of service tax - Reimbursement

  • Subject to service tax.

  • Claimant is acting as a principal to customer

  • Additional charges and mark up for the payment.

  • Service provider shall bill to claimant.

  • Customer is unaware of who the service provider is and the actual cost incurred.

  • Only claimant’s bill is being issued to customer.

Reference:

Guide on Disbursement and Reimbursement

https://mysst.customs.gov.my/assets/document/Specific%20Guides/Disbursement%20and%20Reimbursement.pdf

KTP/THK key takeaways

Talk to us if you are still confused after reading SST official guideline.

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 
 
SSTKtp Ktpreimbursement vs disbursement, sst