Disposal of Motor Vehicle in No Consideration

Good Day. My company is going to give a Motor Vehicle to a staff who’s been with the company for 20 years and now retired. May I know what’s the GST impact for both parties?

1. The company – Deemed supply-Pay GST on NBV?
2. The staff – Any declaration in the Income Tax Filing? Benefit-in-kind?

Asked on March 22, 2017 2017-03-22 10:01:34 Business (商家)
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1 Answer(s)

1.  When is this motor vehicle purchased? Before or after the GST era.  It is quite impossible for a motor vehicle to be disposed off without a consideration unless it is totally write off.
2.  On the LHDN tax implication, yes it is consider as a BIK and the Company has to issue Form EC to him.

Answered on March 25, 2017. 2017-03-25 05:57:12
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