1. What is GST?

   GST is a multi-stage, broad-based, consumption tax charged on the supply of goods and services, as well as on the importation of goods into Malaysia.

2. What is the rate of GST and when will GST be implemented?

   The current GST rate is prescribed at 6% of the value of the goods and services supplied. The effective date for the implementation of GST is 1 April 2015

3. Are services rendered by SCB subject to GST?

   Fees, commission and service charges relating to financial services are subject to GST. Therefore where applicable, SCBMB and SCSB reserve the right to charge and collect GST on behalf of the RMCD. Our prices quoted to you are GST inclusive, where applicable.

4. How will SCB provide me with a Tax Invoice for GST on fees and charges imposed by SCB?

   Tax invoices will be provided to our customers either in hard copy or electronically. Customers� bank statements will not be modified into tax invoices. Some GST charged on taxable charges will be shown as separate items in the bank statements and others may be included with the taxable charges in bank statements.

5. What is a GST Credit Note? And how often will SCB issue this?

   A GST credit note is issued only when an original fee charge that was subject to GST is reversed. SCB will only issue a credit note as and when a taxable fee, charge or commission is reversed.

6. I am an SCB credit card holder and have paid the annual service tax on 1 March 2015. Will SCB impose GST on my credit card annual fee?

   The service tax on credit cards (RM50 and RM25 on principal and supplementary cards respectively) will be abolished with effect from 1 April 2015 and will be replaced by GST. The 6% GST will only be charged on the annual fee charged on or after 1 April 2015. If you have already paid the service tax, the annual fee will not be subject to GST in the current year of service, and GST will only be charged on your next annual renewal date.

7. Will there be GST on the reward points earned based on the amounts I spend?

   No GST will be charged on the granting of reward points to our customers.

8. SCB charged me an annual fee on 1 January 2015 for the Safe Deposit Locker Rental. Will this fee be subject to GST?

   Rental for Safe Deposit Locker is subject to GST effective from 1 April 2015. As this fee spans 1 April 2015, the fee portion attributable prior to 1 April 2015 will not be subject to GST while the portion attributable from 1 April 2015 will be subject to GST. However, no GST is to be collected from you as the rental is deemed to be GST inclusive.

9. I am an SCB Malaysia Customer from Singapore. I recently took a loan with SCB Malaysia to finance my house in Johor Bahru. Is this loan subject to GST?

   The disbursement of loan, as well as interest charged, are not subject to GST . However, all fees or charges made by SCB will be subject to 6% GST as this service relates to the financing of land or goods in Malaysia.

10. A Malaysian company recently won a project to develop power plants in Sumatra from the Indonesian Government. The company is required to furnish a bank guarantee to ensure the project is done satisfactorily and on time. Will the commission charged on bank guarantee be subject to GST?

    The bank guarantee is regarded as an export service as it is issued to guarantee land or goods outside Malaysia. Hence, there will be no GST charge on the commission since this is a zero rated supply.

11. I recently acquired a number of unit trust from SCB. Will there be any GST on such products?

    The sales and purchase of units are not subject to GST. Where income is distributed in the form of unit splits or cash; or reinvestment of distribution to the unit holders, these will not be subject to GST. However, GST will be levied on the sales charge for subscription and switching services under this product.

12. What is the GST treatment for Islamic banking products?

    Islamic banking products are subject to the same GST treatment as conventional products in order to ensure tax neutrality. Where a service charge and fee (including Wakalah fee) is being charged to the customer, it is subject to GST.

Disclaimer: Given the changing nature of the legislation, rules and regulations, the FAQs are subject to change and will be updated from time to time. Also, please note that this FAQ does not purport to constitute tax advice and should be used as a guide only. For GST-inclusive prices on our products, please refer to our Fee and Charges schedule.