Important Notice on Goods & Services Tax (GST) Rate
Dear Valued Customers,
Effective 1 June 2018, the Goods & Services Tax (GST) will be reduced from 6% to 0%. This change will affect all fees and service charges, previously subject to GST. We will continue to amend our documents and materials accordingly in due course.
Issued jointly by CIMB Bank Berhad & CIMB Islamic Bank Berhad
0% Goods and Services Tax (GST) Frequently Asked Questions (FAQs) 31st May 2018
1. What will happen to the Goods and Services Tax (“GST”)?
As per the announcement made by Ministry of Finance dated 16th May 2018, GST of 6% will be reduced to 0% effective 1st June 2018.
2. Is this GST amendment effective 1 June 2018, considered as an abolishment of GST?
With this announcement, it is reduction of GST standard rate from 6% to 0% effective 1st June 2018.
3. What does this reduction of GST mean to customers?
With this announcement, the GST on Bank’s fees and charges will be reduced from 6% to 0% effective 1st June 2018, i.e. customer will not be charged any GST.
4. Is the reduction of GST only for over-the-counter transactions?
No, the reduction of GST applies to all transactions that were previously subjected to GST standard rate of 6%.
5. What if I transacted before 1st June 2018, will GST 6% still be applicable?
Yes, all transactions performed before 1st June 2018 will continue to be subjected to GST standard rate of 6%.
6. What if I scheduled a transaction after 1st June 2018, will GST of 6% be applicable and will the Bank refund it?
If payment for services scheduled after 1st June 2018 are made before 1st June 2018, the transaction will be subject to GST of 6% and this is non-refundable.
For example, if Customer was to make payment on 28th May 2018 for an insurance policy that will start on 5th June 2018. Payment for the insurance policy is subjected to GST standard rate of 6%.
7. If services are performed before 1st June 2018 but invoice was given on or after 1st June 2018, will that service be subjected to GST 6%?
Yes, services performed prior to 1st June 2018 will be subject to GST of 6%.
8. What if your brochures and communication materials still indicate that fees and charges are subject to GST 6%?
We take note of your feedback and will ensure that CIMB’s brochures and communication materials will be revised to reflect the reduction of GST in due course.
9. Does this mean there will be no more taxes from 1st June 2018?
We are unable to confirm and will be guided by the Ministry of Finance. We will continue to update our customers via all channels of communication.