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?
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.