ACCCIM Report on the SME Taxation Survey 2016
Background of the Survey
It has been one year since Malaysia implemented Goods and Services Tax (GST). ACCCIM hopes to collect various taxation issues face by SMEs, and whether these issues affecting the cost of doing business, for onward submission and deliberation with the relevant Government Ministries and Agencies so as to seek measures to resolve the issues.
Objectives of the Survey
1. To understand the impacts and challenges faced by Malaysian businesses arising from GST after one year of implementation. 2. The survey results will provide the basis for ACCCIM in the submission of memoranda and related dialogue sessions with the Government and its related agencies. It will also be used as a reference for future events and action plans to be formulated by the ACCCIM.
Respondents Background
1. The survey was conducted during the period of 29th April 2016 to 31st May 2016. A total of 1,200 survey questionnaires were distributed, with 806 returns received. The response rate is 67.17%.
2. The survey was conducted mainly through ACCCIM’s 17 constituent chambers located throughout Malaysia in 13 states and participated by other national level chambers of commerce, trade and sectorial organisations such as textile manufacturing, shopping malls, construction and building materials, sundry goods merchants, retailers, knitting manufacturing, hoteliers etc. The survey findings reflect the collective views of industries and businesses irrespective of ethnic group.
3. In respect of the geographical distribution of the responded entities, of which 33% are from Southern Region (Johor, Melaka), followed by Northern Region (Perlis, Kedah, Penang and Perak) and Central Region (Kuala Lumpur, Selangor & Negeri Sembilan) which contributed 26% and 25% respectively.
4. 75% of the respondents are private limited corporations (Sdn. Bhd.), 15% are Sole Proprietors whilst the rest are in the form of partnerships: 9% are conventional partnerships and the remaining 1% are limited liability partnerships (LLP).
5. Out of the 806 respondents, 30% are in Manufacturing, followed by 26% in Wholesale and Retail businesses, 16% in Construction & Contractors and Property Development, and 10% in Professional services.
6. The majority of the respondents (70%) are from services and other industries, only 30% from the manufacturing industry.
7. 71% of the respondents are businesses that are in operation for at least ten (10) years. Only 10% of the respondents are newly established companies with less than four (4) years in operation.
