Maintenance fees for residential stratified properties will be exempt from the goods and services tax (GST), according to Deputy Finance Minister Datuk Ahmad Maslan.
He revealed that the exemption covers all types of residential stratified properties, including apartments, condominiums and low-cost housing projects.
“I want to confirm the change of policy. All of it. Whether it is a condominium, flat, low or low-medium-cost apartment. All will be exempted from GST,” said Ahmad Maslan following a briefing on the six percent tax in Kuala Lumpur.
“Whether it is luxury or not… medium or low… the maintenance fees will not be charged with GST.”
He said the decision came after the government heard the views of residents and leaders of high-rise management bodies. He added that the government believed that building maintenance will not be a business that yields large profits.
“It is more a service that is operated by residents’ committee, in relation to maintenance, repair, or paying security guards. It is not a business that focuses on big profits,” said Ahmad Maslan.
Moreover, building maintenance is a service that affects a lot of people, just like public transport services, hence, should be exempt from GST.
http://www.propertyguru.com.my/prop...ce-fees-for-residential-properties-gst-exempt
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