The Ministry of Finance ("MOF") has announced that the Goods and Services Tax ("GST") standard rate will be changed from six percent (6%) to zero percent (0%) effective 1st June 2018. As such,
For Life Insurance
Non-life rider/medical premium that existing subject to GST after 1st June 2018 will not attract GST unless the premium has been paid prior to this date where the GST standard rate of six percent (6%) still applies. However, for those non-life rider/medical premium due before 1st June 2018, but payment made after 1st June 2018, will still attract GST at standard rate of six percent (6%).
For General Insurance
General insurance policies with coverage period commencing from 1st June 2018 will not be subject to GST unless the premium has been fully paid prior to this date where the GST standard rate of six percent (6%) still applies. For general insurance policies with coverage period spanning 1st June 2018, i.e commences before 1st June and ends after 1st June, an adjustment will be raised to re-state the GST rate to zero percent (0%) for the portion of premium relating to the period after 1st June. However if the premium has been fully paid prior to 1st June, no adjustment will be effected.
In addition to the above, Tokio Marine will continue to comply with the provisions under the GST Act 2014 until further notice, which includes the issuance of tax invoices to our customers, albeit at the standard rate of zero percent (0%).
Further information on the GST rate change can also be obtained from the Royal Malaysian Customs Department website at www.gst.customs.gov.my