GST treatment on management fee billed from overseas HQ to local subsidiary companies
Our overseas HQ will bill to its subsidiary companies in Malaysia every month for the Management Fee incurred on services provided to the subsidiary companies. The service provider Management is station in Malaysia. Is this consider as import services? How to go about it under GST regime and may I know which tax code to use?
Agent to handle the GST related filing
Based on your scenario the employee of the oversea HQ is located in Malaysia to provide management services to fellow subsidiary in Malaysia:-
GST impact on Oversea HQ
the overseas HQ is deemed to have a business establishment in Malaysia (some sort of permanent establishment under Double Taxation) and the services provided to fellow Malaysia subsidiaries by the Oversea HQ is local service and subject to GST. The oversea HQ need to appoint an agent to handle the GST related filing
GST Impact on fellow Malaysian subsidiary
The Malaysian subsidiary companies will be acquiring local services and the relevant tax code should be TX (if the oversea HQ is registered person) or NR (if oversea HQ not registered)
Imported services may not be applicable for your case as the service provider is located in Malaysia but the billing performed by an oversea entity.