GST - Goods and Services Tax

Yes. With effect from 1 June 2018, all bank service charges such as ATM fees, credit card annual subscription fees, other fees / commissions, etc. which were subject to GST at standard-rated of 6% has been changed to 0%. Please refer to the Tariff and Charges published in the Bank's website for the revised fees and charges. Links to these documents are provided below.

HSBC Bank Malaysia Berhad - Tariff and Charges (PDF, 10MB)

HSBC Amanah Malaysia Berhad - Tariff and Charges (PDF, 11.2MB)

The Hongkong and Shanghai Banking Corporation Limited, Offshore Banking Unit Labuan - Tariff and Charges (PDF, 686KB)

ATM withdrawal fees will be subject to 0% GST.

A flat fee of RM0.10 for IBG transaction was charged before and no adjustment was made to the fee when GST was implemented on 1 April 2015 at 6%. We continue to charge the fee at RM0.10 (inclusive of 0% GST) on or after 1 June 2018.

The Fee charged is in respect of the period up to 31 May 2018 and hence, subject to GST of 6%. You may refer to the description of fee charged for further details.

All banking services performed on or after 1 June 2018 is subject to 0% GST. The message explains the fee charged is inclusive of GST, which has been set at 0%.

Interest / profit charged on the provision of loans / financing will remain as an exempt supply. The interest / profit is not subject to GST. However, any service fees or charges in relation to it, such as processing fee, advisory services fee, photocopy charges, etc. are subject to GST at 0%.

No. Late payment charge / compensation charge for loan / financing remains as not subject to GST.

The entire sum of credit card annual subscription fee collected in January 2018 for the year of 2018 is subject to 6% GST. As such, no refund will be made.

Renewal of credit card subscription fee on or after 1 June 2018 is subject to GST at 0%.

Yes. The annual credit card subscription fee and 6% GST charged will be refunded to you in full.

The cash advance fee for transaction performed before 1 June 2018 is subject to 6% GST.

GST will be charged at 0% on ATM fees for usage of ATM services located in Labuan.

All banking services are subject to GST at 0%.

No change to the tax invoice format. The GST rate will be revised to 0% for banking service charges in connection to transactions performed on or after 1 June 2018.

The entire sum of safe deposit rental collected before 1 June 2018 is subject to 6% GST. As such, no refund will be made.

Goods and Services Tax (GST) is a broad based consumption tax assessed on value added to goods and services at each stage of the supply chain.

A GST registered person is a person (business, partnership or individual) registered under the GST Act. Registered persons are required to charge GST on the supply of taxable goods and services. Non-registered persons may not charge GST.

No. GST replaces the current Sales Tax and Service Tax (SST) system which will be repealed upon introduction of GST.

The GST rate is currently fixed at 6% (standard-rated) on the value of taxable supply of goods and services. GST will be implemented on 1st April 2015.

GST is levied at standard-rate on all goods and services made in the course or furtherance of business in Malaysia by a taxable person (GST-registered), including imported goods and services, unless specifically zero-rated or exempted.

There are two types of GST tax:

1. Output Tax is GST charged and collected by the Bank on sales/supplies of goods and services.
   E.g.: Bank collects GST on banking transaction fees and charges from customers to be paid to Customs.
2. Input Tax is GST paid by the Bank on purchase of goods and services in business activity.
   E.g.: Bank pays GST to suppliers for purchases / services provided by vendors.

Standard-rated supplies

• supplies of goods and services taxable at standard rate of 6% unless specifically zero-rated or exempted
• input tax is claimable

Zero-rated supplies

• supplies of goods and services taxable at 0%
• input tax is claimable

Exempt supplies

• non taxable supplies, no GST
• cannot claim input tax

GST is levied and charged only if a person (business, partnership or individual) is registered under GST through this URL: https://gst.customs.gov.my/TAP/_/. After registration, the person is considered GST-registered.

If the annual sales of taxable supply for any business exceeds the prescribed threshold of RM500,000, then it is a mandatory requirement for the business to be registered under GST. However, those below the prescribed threshold may apply to be voluntarily registered. "Taxable supply" refers to goods and services that are subject to GST.

A valid tax invoice acts as a supporting document for GST-registered person to claim input tax credit from the Royal Malaysian Customs (Customs). For the Bank, the valid tax invoice will be issued by the Bank in the name of the customer and contains information required under the GST regulations.

ATM withdrawal fees will be subject to 0% GST.

A flat fee of RM0.10 for IBG transaction was charged before and no adjustment was made to the fee when GST was implemented on 1 April 2015 at 6%. We continue to charge the fee at RM0.10 (inclusive of 0% GST) on or after 1 June 2018.

The Fee charged is in respect of the period up to 31 May 2018 and hence, subject to GST of 6%. You may refer to the description of fee charged for further details.

All banking services performed on or after 1 June 2018 is subject to 0% GST. The message explains the fee charged is inclusive of GST, which has been set at 0%.

Please refer to the Rates, Tariff & Charges published in the Bank's website on Payment Services.

The Bank is required to remit GST collected to Customs in Ringgit Malaysia (RM). GST is collected at 6 per cent of the fees charged converted into RM based on the applicable foreign currency exchange rate.

Example:
Assuming fee charged = USD20.00 and exchange rate is USD 1 = RM 3.625
Fee charged = USD20.00 x 3.625 = RM72.50
GST @ 6% = RM72.50 x 6% = RM4.35

The GST treatment varies, depending on the Charge Type chosen by the client:

Charge Type: OUR
Remit amount will be the amount stated in the payment instruction.
HSBC transaction charges and GST fee is debited on top of the remit amount.
Beneficiary bank charges, if any, will be debited separately from the client account upon request from the beneficiary bank and remitted separately without any GST charges.
Tax invoice will be issued to the client (remitter).

Charge Type: Share (SHA)
Remit amount will be the amount stated in the payment instruction.
HSBC transaction charges and GST is debited on top of the remit amount.
Beneficiary bank charges, if any, is borne by the beneficiary.
Tax invoice will be issued to the client (remitter).

Charge Type: Beneficiary (BEN)
Remit amount will be reduced by the transaction charges and GST charges.
Beneficiary bank charges, if any, will be borne by the beneficiary.
Tax invoice will be issued to the client (remitter).

If foreign currency is involved in reversal, the original rate will be used for reversal of the GST amount.

The purchase or sale of foreign currency is not subject to GST.

The provision of loan / financing is a financial supply and exempt from GST. Hence, the corresponding interest / profit charge is not subject to GST. However, any service fees or charges in relation to it, such as processing fee, advisory services fee, photocopy charges, etc. are subject to GST.

The repayment of loan / financing, i.e. the instalment of the principal amount with or without interest / profit charge is not subject to GST.

No. Late payment charge / compensation charge for loan / financing is not subject to GST.

No. The early settlement charges for home loan / financing is not subject to GST.

No. The transactions on your credit card is between you and the vendor providing the goods or services. The Bank will not charge you GST on these transactions.

No. The government tax on credit cards is levied under the Service Tax Act 1975 which will be repealed with the implementation of GST. However, the annual fee charged after 01 April 2015 for the usage of your credit card (if applicable) is subject to GST.

No. GST is collected where a fee has been charged. This is because GST is imposed by the Government and not by the Bank.

1. No.
2. Yes, GST will be chargeable on cash advance fees incurred by customers.

Since there is no consideration for the supply of service, there is no GST on the waived annual subscription fee.

GST is not charged on interest, however, it is applicable on fees.

GST is only applicable on fees and not interest. As such, GST will be applicable on cash advance fee for Cash Instalment Plan (if charged).

Credit card charges such as Annual Fee, Cash Advance Fee, Statement Retrieval Fee, Cash In Plan (CIP) Upfront Fee are subject to GST.

Yes, all fees (if any) charged to unit trust transactions such as service charge, redemption fee (if applicable), switching fee and transfer are subject to GST at standard rate of 6 per cent.

Unit trust income distribution is not subject to GST.

No. Interest earned and realized capital gains on the investment are not subject to GST.

No. There is no fee charged to Structured Investment purchase, hence not subject to GST.

There is no fee charged to Bond/Sukuk purchase, hence not subject to GST. However, other administrative fees (if any) charged for disposal / sales of bond / sukuk or coupon payout is subject to GST.

1. GST is applicable to all General Insurance / Takaful products e.g. Fire Insurance, Motor Insurance, Personal Accident Insurance, Medical Insurance, etc.
2. Life Insurance / Family Takaful products are generally exempted and the premium/contribution payments for these products are not subject to GST. However, GST is applicable on the portion of the Life Insurance / Family Takaful product which has general insurance rider / Non-family takaful rider. e.g. Life/Family product with an Accidental Death rider. For this product, GST is applicable on the Accidental Death rider premium/contribution only.

For a bundled product e.g. where a life insurance/family takaful product is bundled with a general/non-family benefit, GST is exempted based on the nature of principal product supply. For e.g. a Life/Family product with an Accidental Death benefit is exempted from GST.

Rental charges on safe deposit lockers are subject to GST. For Custody and Clearing business, the charges are standard rated where it relates to the services provided on capital market products traded in Malaysia.

Generally, all fees and commissions charged for trade finance products and services are subject to 6 per cent GST. However, for export services this will be zero rated. The interest / profit charged on the financing of the trade finance product and services is exempted.

ATM services located in Designated Areas (DA's) are subjected to GST. This is in line with the Customs "Guide on Designated Area" page 7 point 18 which states the following: "Supplies of services provided to DA from a service provider in Malaysia are subjected to GST if the supplier is a registered person."

Under the GST legislation, the interpretation of Malaysia, designated area, Langkawi, Labuan, or Tioman are as follows:

1. 'Malaysia' excludes designated areas;
2. 'designated area' means Labuan, Langkawi, or Tioman;
3. 'Langkawi' means Langkawi Island and all adjacent islands lying nearer to Langkawi Island than to the mainland.
4. 'Labuan' means the Island of Labuan and its dependent island viz. Rusukan Besar, Rusukan Kechil, Keraman, Burong, Papan and Daat.
5. 'Tioman' means the Island of Tioman and the islands of Soyak, Rengis, Tumok, Tulai, Chebeh, Labai, Sepoi and Jahat.

Services provided from overseas into designated area are not subject to GST.

Other than the provision of Safe Deposit Lockers and sales of merchandise, all other taxable services are subjected to GST.

The Bank will issue a tax invoice which will show the price of banking services both including and excluding of the GST amount. The tax invoice is issued via online banking portal / email / hardcopy as follows:

Retail Banking

• For credit card tax invoices - monthly
• For banking tax invoices / credit notes / debit notes - annually

Commercial Banking / Global Banking & Markets / Offshore Banking Unit Labuan

• For credit card tax invoices - monthly
• For banking tax invoices/ credit notes/ debit notes - based on current statement frequency

Please check if your mailing address / email address is updated to ensure tax invoice / debit note / credit note is sent to the correct address. Should you require a copy of the tax invoice / debit note/ credit note, please contact your branch of account.

Every registered person who makes taxable supply of goods and services is required to issue a tax invoice for standard-rated supplies.

The Bank is required to issue a tax invoice for any taxable goods and services it supplies. Tax invoices have a prescribed format and are required to support any input tax claim.

Tax invoices are issued in Ringgit Malaysia (RM) only. Where fees/charges are in foreign currency, the RM equivalent is ascertained and GST of 6 per cent is imposed on the RM equivalent.

GST is calculated on individual fees imposed on a transaction basis, and not based on the total amount reflected on your tax invoice. Kindly refer to our latest tariff and charges for your reference.

Credit Notes / Debit Notes are issued if there are any adjustments to the Tax Invoices.

A Credit Note is issued when the amount previously invoiced is reduced / transaction cancelled / refunded.

A Debit Note is issued when amount previously invoiced is increased e.g. if GST amount was manually calculated and posted in error, short of the 6 per cent amount.

If you are GST registered, you may claim input tax credit on any GST paid when filing your GST return.

The tax invoices displayed within your HSBC Internet Banking are issued if you incur fees during the invoice period that are applicable for GST.

No. Suppression of Tax Invoice / Debit Note / Credit Note is not allowed.

No. Tax Invoice / Debit Note / Credit Note are issued by the respective entities (HSBC Bank, HSBC Amanah, Offshore Banking Unit Labuan) that supply the service and receive the fee income.