1. What is the Flat Rate Scheme in Malaysia?

The Flat Rate Scheme is a simplified method for calculating Sales and Service Tax (SST) in Malaysia, where businesses apply a fixed percentage rate to their turnover to determine their tax liability.

2. How Does the Calculator Work?

The calculator uses the Flat Rate Scheme formula:

Where:

• \( Turnover \) — Total business revenue (MYR)
• \( Flat Rate \) — Fixed percentage rate expressed as a decimal

Explanation: This simplified calculation method allows businesses to easily determine their SST liability without complex calculations.

3. Importance of SST Calculation

Details: Accurate SST calculation is essential for Malaysian businesses to comply with tax regulations, avoid penalties, and properly plan their financial obligations.

4. Using the Calculator

Tips: Enter your total turnover in MYR and the applicable flat rate as a decimal (e.g., 0.06 for 6%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for the Flat Rate Scheme in Malaysia?
A: The scheme is typically available to small businesses with annual turnover below a specified threshold, though eligibility criteria may vary.

Q2: How is the flat rate determined?
A: The flat rate percentage is set by the Malaysian tax authorities and may vary by industry or business type.

Q3: Can I switch between calculation methods?
A: Businesses typically need to apply for the Flat Rate Scheme and may have restrictions on switching between calculation methods.

Q4: What expenses are deductible under this scheme?
A: Under the Flat Rate Scheme, businesses generally cannot deduct input tax, as the flat rate is applied to gross turnover.

Q5: How often must SST payments be made?
A: SST payments are typically made monthly or quarterly, depending on the business's registration and the specific scheme requirements.