Goods & Services Tax (GST) FAQs
  • General
  • Deposit & Debit Card
  • Foreign Currency Exchange Services
  • Auto Loan Financing
  • Credit Cards
  • Personal Loan Financing
  • Bancassurance / Bancatakaful Business

General

  1. What is GST?

    GST or Goods and Services Tax, which is also known as value added tax or VAT in many countries, is a multi-stage consumption tax on goods and services.

    GST is charged on all taxable supplies of goods and services in Malaysia except those specifically exempted. GST is also charged on importation of goods and services into Malaysia.

    GST shall replace the current consumption tax i.e. the sales tax and service tax (SST).

  2. When will GST be implemented?

    GST will be implemented effective from 1st April 2015.

  3. What is the rate of GST that will be imposed?

    The standard rate of GST is currently fixed at 6% on the taxable supply of goods and services or on the importation of goods and services. However, certain classes of goods and services are subject to zero-rate (0%) of GST.

  4. What is the difference between the current sales and services tax and GST?

    Sales Tax and Services Tax have been found to be less effective, efficient, transparent and business friendly because it is a single tier tax as opposed to the GST, which is a multi-tier consumption tax.

    Under GST, payment of tax is made in stages by each level of the distribution process or supply chain. GST covers all sectors of the industry and is a tax on final consumption of goods and services, where businesses are able to claim back as credit the GST paid for goods and services they have acquired for the purpose of business, thus eliminating the cascading effect under the current sales tax. Goods which are now subject to sales tax should experience a reduction in prices due to the elimination of the cascading effect, whereas an increase in prices currently not subject to any sales or services tax will not be more than the GST rate proposed (6%).

  5. Will GST be charged on all banking transactions?

    No. GST will only be charged on applicable fees and charges.

    Please visit Hong Leong Bank's corporate website (www.hlb.com.my) for the non-exhaustive list of fees and charges that are subject to GST, or visit any of our branches for details.

  6. Can you provide me HLBB’s GST registration number and registration date?

    HLBB’s GST registration : 000459079680
    HLBB’s GST registration date : 20th August 2014

  7. Where can I find out the most current fees and charges after GST implementation?

    A non-exhaustive list of fees and charges is available on the Bank's corporate website (www.hlb.com.my) and at our branches.

  8. Can the GST be waived?

    No. The tax is payable to Kastams on taxable supplies of goods and services.

  9. Will the GST imposed be shown in my account statement?

    Yes.

  10. Will HLB issue me a Tax Invoice for the GST charged? How frequent will the Tax Invoice be issued?

    Generally, Tax Invoice will be issued at monthly basis and will only be issued to customers upon request. You may obtain the Tax Invoice via the following:

    1. View/download the Tax Invoice from HL Connect or Corporate Internet Banking (CIB) if you have the internet banking account.
    2. Request for the Tax Invoice from HL Call Centre or our branches/centres.
    3. Subscribe for the electronic copy of Tax Invoice (e-Tax Invoice) via HL Connect / Corporate Internet Banking / HL Call Centre / our branch. The e-Tax Invoice will be sent to your email account at monthly basis.
    4. Submit your request to any of our branches for the hardcopy of Tax Invoice to be sent via normal post to your correspondence address at monthly basis.

Deposit & Debit Card

Money Box Deposit Account

  1. Will GST be charged on interest paid to my Money Box Deposit Account?

    No. Interest paid to your Money Box Deposit Account is not subject to GST.

  2. Is the GST chargeable on the annual fee / issuance fee / renewal fee or other fees and charges?

    Yes, GST is applicable for all Fees and Charges stated in the Debit Card Product Disclosure Sheet (PDS).

  3. How do I pay for the fees and charges?

    The fees and charges is charged directly to the customer’s account that is tagged to the Mach Debit Card.
  4. When a customer deposits or withdraws money from his Money Box Deposit Account are they subject to GST?

    No. customer deposits or withdraws money from his Money Box Deposit Account and Mach Fixed Deposit Account are not subject to GST.

    However, if the CASA withdrawal is done via other Bank’s ATM, GST shall apply on the MEPS service charges.

  5. Bank Charges its customers certain fees such as Annual Fee for Debit Card / Service Charges for closed CASA account, are they subject to GST?

    Yes, any fee based charges are subject to GST at standard rate.

  6. Is the GST chargeable on the penalty fee in the event the earmarked amount is released in less than the required earmarking period?

    No, penalty fee is not subject to GST.

Mach Fixed Deposit Account

  1. Will GST be charged on interest paid to my Mach Fixed Deposit Accounts?

    No. Interest paid to your Mach fixed deposit accounts is not subject to GST.

  2. When a customer deposits or withdraws money from his fixed deposits is this subject to GST?

    No. customer deposits or withdraws money from his fixed deposits is not subject to GST. However, if the CASA withdrawal is done via other Bank’s ATM, GST shall apply on the MEPS service charges.

Dream Jar Saving Accounts

  1. Will GST be charged on interest paid to my Dream Jar Saving Accounts?

    No. Interest paid to your Dream Jar Saving Accounts is not subject to GST.

  2. When a customer deposits or withdraws money from his Dream Jar Saving Accounts is this subject to GST?

    No. customer deposits or withdraws money from his Dream Jar Saving Accounts is not subject to GST.
    However, if the CASA withdrawal is done via other Bank’s ATM, GST shall apply on the MEPS service charges.

  3. Bank Charges its customers certain fees such as Service Charges for closed CASA account, are they subject to GST?

    Yes, any fee based charges are subject to GST at standard rates.

  4. Is the GST chargeable on the penalty fee in the event the earmarked amount is released in less than the required earmarking period?

    No, penalty fee is not subject to GST.

MyPal Convenience Line

  1. Will I be charged for depositing or withdrawing my MyPal Account?

    No, you will not be charged with GST for depositing or withdrawing your MyPal account. However, if there are any fees or charges associated with the depositing or withdrawal from your account, GST will be imposed at 6% on the fee/charges.

Foreign Currency Exchange Services

  1. Will GST be charged on foreign currency exchange services?

    No. Foreign currency exchange services are not subject to GST.

Auto Loan Financing

  1. Will GST be charged on interest charged to my auto loan account?

    No. Interest charged to your auto loan account is not subject to GST.
  2. What is the GST treatment when the hirer makes an early settlement on the HP Agreement?

    There is no GST implication when there is an early settlement by the hirer.

  3. Will GST affect the Bank’s lending policy?

    There will be no change to the existing credit policy and lending terms.

Credit Cards

  1. What are the credit card Fees & Charges that are subject to GST?

    Please visit Hong Leong Bank’s corporate website (www.hlb.com.my) website for the listing of credit card related Fees & Charges that are subjected to the GST

  2. Is GST going to replace Credit Card Service Tax of RM50 (principal) or RM25 (supplementary)?

    Yes, once GST is enforced on 1 April 2015, Credit Card Service Tax shall be ceased.

  3. How can I view the GST amount imposed on the taxable Credit Card transactions?

    The GST imposed on the taxable supply shall be posted into the Credit Card account and reflected in the Credit Card statement as a separate transaction but tied back to the original taxable transaction.

  4. Will there be a reversal of the GST transaction if the original taxable transaction was reversed out subsequently?

    Yes, the 6% GST would be reversed out accordingly and such reversal will also be reflected in the Credit Card Statement.

  5. Will there be a Tax Invoice generated by HLB on the GST imposed on the taxable supply?

    Yes, the Tax Invoice is retrievable from the following channels:

    1. Sign on to Hong Leong Connect to retrieve the Tax Invoice
    2. Request hardcopy from our branch
    3. Call HL Contact Centre and request a copy to be sent via email or fax
  6. Will there be a Credit Note generated by HLB on the GST transaction which was subsequently reversed out in accordance to the reversal of the original taxable supply?

    Yes, the Credit Note is retrievable from the following channels:

    1. Sign on to Hong Leong Connect to retrieve the Credit Note
    2. Request hardcopy from our branch
    3. Call HL Contact Centre and request a copy to be sent via email or fax
  7. Is Late Payment Charges and Finance Charges (Retail & Cash Interest) subject to GST?

    No, they are not subjected to GST.

  8. My credit card’s anniversary month falls in March (before GST implementation). Do I have to pay for GST imposed on the taxable supply - Annual Fee?

    No, GST will not be imposed on Annual Fee charged in March 2015. Instead, the existing Credit Card Service Tax of RM50 (principal) or RM25 (supplementary) shall be imposed.

  9. If I have paid the annual fee and card service tax on 15 March 2015 (before 1 April 2015), will the GST still be imposed after 1 April 2015?

    No, the GST will only be charged on 15 March 2016 (following year).

  10. I am having a credit card free annual fee for life with no spending condition (example: Mach Signature Card). Do I have to pay for the GST under annual fee?

    No, as the annual fee is not billed, hence no GST imposed.

  11. Do I have to pay GST for the cash rebates I am earning every month on my card (example Mach Credit Card cash rebates)?

    No, rebates you earned are not subjected to GST.
  12. Do I have to pay GST on free gifts received from the Bank's initiated marketing campaigns or promotions?

    No.
  13. If I take up BT/BT+/CFC/CFC+ with your bank, do I have to pay for GST?

      BT BT+ CFC CFC+
    Amount1
    Interest1 N/A
    Handling Fee2 N/A N/A N/A
    One Time Interest2 N/A N/A N/A
    RM2 IBG Fee3 N/A

    1 Not subject to 6% GST.
    2 Subject to 6% GST.
    3 Should you require for the funds to be disbursed via IBG, the 6% GST is chargeable on the RM2 IBG fee.

  14. I used my card in overseas and I understand there is an administrative fee imposed by Card Scheme and the bank. Is the administrative fee subjected to GST?

    Yes, the administrative fee imposed by Card Scheme and the Bank is subjected to GST.
  15. Will there be any GST on Mach Credit Card’s Add-On Category Fee of RM5 per quarter?

    Yes, you will be charged RM5.30 (equivalent to RM5 Add-On Category Fee and RM0.30 of 6% GST).

Personal Loan

  1. Will GST be charged on interest charged to my Personal Loan account?

    Interest charged to your Personal Loan account is not subject to GST.

  2. For Hong Leong Personal Loan Consolidation, will GST be charged on Interbank GIRO fee for settlement transactions on outstanding credit cards / Personal Loans with other Bank(s)?

    Yes, a nominal fee of RM2.12 (inclusive of GST of 6%) will be charged on every Interbank GIRO transaction.

  3. Do I need to pay GST on stamp duty for my Personal Loan contract?

    The stamp duty fee is not subject to GST as the service is regulatory in nature and is an out of scope supplies.

  4. Is the monthly installment on my Personal Loan account subject to GST?

    No, GST will NOT be charged on monthly installment.

  5. Are late payment charges / interest on late payment subject to GST?

    No, GST will NOT be charged on late payment charges / interest due to late payment.

Bancassurance / Bancatakaful Business

  1. Is the insurance premium / takaful contribution for life insurance / family takaful subject to GST?

    No. Life insurance / family takaful policies are exempt supplies and therefore the insurance premium / takaful contribution is not subject to GST. However, other fees and charges for services provided by the insurance/takaful company (e.g. fees and charges of investment linked policies, surrender charge) may attract GST at the rate of 6%.

    Please read your insurance/takaful policies (for existing policyholders) or Product Disclosure Sheet and Insurance/Takaful Sales Illustration document (for new applicants) for details.

    You may also contact the insurance/takaful company for clarification.

  2. Is the insurance premium/takaful contribution for MRTA/MRTT subject to GST?

    No. Same as other life insurance/family takaful products, insurance premium/takaful contribution for MRTA/MRTT is exempted for GST (no GST is charged).
  3. I have signed up the HLA’s Credit Shield Premier (Credit Shield Protection or CSP plan) for my Hong Leong Bank Credit Card(s). Is the premium for the CSP subject to GST?

    No. Same as other life insurance products, premium paid for the CSP plan is exempted for GST (no GST is charged).
  4. Before GST is implemented, I have paid the insurance premium / takaful contribution for my general insurance/takaful policy where the coverage spans beyond 1st Apr 2015. Is the premium/contribution subject to GST?

    Insurance premium / takaful contribution for policy spans beyond 1st Apr 2015 shall be subject to pro-rata GST (for the period of coverage from 1st Apr 2015 onwards), except where the insurance premium / takaful contribution has already been charged with services tax.

    The insurance/takaful company will notify you in the event that the pro-rata GST is chargeable to your insurance/takaful policy.

    Please contact your insurance/takaful company for details.

  5. Will there be an increase in premiums/contributions for my general insurance/takaful because of GST?

    Yes, There will be an increase in your premiums/contributions paid for your general insurance/takaful policy if the premiums/contributions are subject to GST.
  6. Will GST be charged on the surrender value if I surrender my insurance/takaful policy?

    No. Surrender Value is not subject to GST. However, surrender fee (if any) is subject to 6% GST.

    Please consult your insurance/takaful company for details.

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