Goods and services tax (GST) sales and services tax (SST): compliance knowledge of businesses in Johor Bahru, Malaysia

• Main Author: Mohamad Faiz, Baharin
• Format: Thesis
• Language: English; English
• Published: 2021
• Subjects: HJ4771.6 Income Tax. Tax Returns.
• Online Access: https://etd.uum.edu.my/9560/1/s821431_01.pdf; https://etd.uum.edu.my/9560/2/s821431_02.pdf; https://etd.uum.edu.my/9560/
• Institution: Universiti Utara Malaysia

Malaysia has experienced a significant indirect tax reform with the change of Goods and Services Tax (GST) to Sales and Services Taxes (SST) within short period between June to August in year 2018. During this time of transition, businesses as the main taxpayers faced crucial challenges to understand and seek knowledge to comply with the new policy mechanism. This study aims to investigate the GST compliance knowledge and SST compliance knowledge possessed by Johor Bahru businesses in complying with both tax system. Other than that, this study also identifies the sources of GST and SST knowledge gained by these taxpayers in order to comply to both regulations. The study data amounted to 105 respondents was collected via survey questionnaire and analyzed using SPSS version 26. The results of data analysis reveal that the respondents possess good understanding of both indirect tax system compliance knowledge. This study also found that the sources of tax knowledge mainly are from the Royal Malaysian Customs Department (RMCD) officers and sharing of knowledge among colleagues of the businesses. In addition, respondents also gained knowledge from RMCD via mass and social media, websites and seminars. The findings of this study are beneficial for the Governmental bodies such as the Ministry of Finance (MOF) as policy maker and RMCD as the tax administrative authority to formulate and devise further on methods of education programmes to taxpayers and public within ample time frame prior to tax reform. It is to ensure higher tax compliance and smooth flow of revenue collection.