NetSuite Automatically Accommodates Upcoming Tax Change to Ensure New GST Compliance for Businesses
Kuala Lumpur, Malaysia—30 March 2015—NetSuite Inc. (NYSE: N), the industry's leading provider of cloud-based financials / ERP and omnichannel commerce software suites, today announced that it has launched new functionality within its tax reporting SuiteApps to help businesses in Malaysia comply with the government's newly introduced Goods and Services Tax (GST), coming into effect April 1st of this year. Designed to help the country increase revenues, broaden its tax base, improve economic efficiency and align its taxation system with those of neighboring nations in the Southeast Asian region, the new tax system will replace Malaysia's existing sales and service tax. NetSuite will automatically handle the required changes, enabling businesses to seamlessly comply with the new rules without any disruption to their use of their SuiteApps and no need to do anything differently. The new functionality incorporates GST calculation and reporting seamlessly via NetSuite's flexible tax compliance engine within its powerful, end-to-end cloud solution, which encompasses ERP (enterprise resource planning), CRM (customer relationship management) and ecommerce. NetSuite is now providing customers with the additional reports needed to comply with the new tax, including the automated generation of the required GST report and GST audit file via the latest updates to its free NetSuite Taxation SuiteApps.
"NetSuite is justly proud of its long pioneering history of automating complex tax compliance requirements across the world in countries including the U.K., Australia, Japan, New Zealand, the Philippines, Singapore, and we're pleased to be adding timely support for Malaysia," said Craig Sullivan, Senior Vice President, Enterprise and International Products at NetSuite. "Thanks to our end-to-end cloud solution's global financial consolidation and automatic updates, companies can confidently enter new geographies, safe in the knowledge that NetSuite has done the heavy lifting to ensure that they can effortlessly navigate and comply with new and future taxation regulation."
What NetSuite Customers Need to Know about Malaysia's New GST
On April 1st, 2015, a new Goods and Services Tax will go into effect in Malaysia with a standard rate of six percent, replacing the country's previous consumption taxes which consisted of a sales and service tax. After many years of discussion in the Malaysian parliament, the new tax system was finally implemented with the primary objective of diversifying the government's revenue sources, and to put in place a more broad-based and progressive indirect tax system. The majority of local and international small, midsized and enterprise companies doing business in Malaysia will then need to begin paying and accounting for the new tax. Companies reporting annual revenue in excess of 500,000 Malaysian Ringgit (around US$138,000) had to register for the GST by 28 February, 2015. As of the beginning of April, all of these companies will be required to report their monthly sales and purchases and submit to GST audits.
The Association of Southeast Asian Nations (ASEAN) is a political and economic organization comprising 10 nations—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), the Philippines, Singapore, Thailand and Vietnam. ASEAN member countries have pledged to create a single unified market with a free flow of goods and services so that companies can more easily engage in cross-border business. A key part of that transition is for nations, including Malaysia, to harmonize some of their laws and their regulatory environments in order to achieve more consistency from country to country. This is also another driver for Malaysia's adoption of GST since many of its neighbors have already adopted similar taxation systems.
NetSuite Customers Can Easily Comply with Malaysia's GST
NetSuite customers already doing business in Malaysia or planning to enter the market can rely on their NetSuite cloud business management software to automatically handle GST calculation and reporting. All that is then required for them to fully comply with the new tax are reports specific to Malaysia's GST, which are now available through an additional functionality in two NetSuite SuiteApps:
Both SuiteApps are available free of charge and can be installed and enabled from a NetSuite account. Existing users of the International Tax Reports and Tax Audit Files SuiteApps will automatically receive updates containing the new functionality for Malaysia's GST, while new users can simply install the two SuiteApps in their NetSuite instance and can then start benefiting from those new reports as soon as the GST comes into effect.
"Our support for Malaysia's new impending GST is the latest demonstration of NetSuite's ongoing deep commitment to and investment in the Asia-Pacific region," said Reginald Singh, Vice President and General Manager, NetSuite Asia. "Everything we do—from opening new, larger Asia headquarters in Singapore to hiring new regional executive talent and to supporting the new taxation requirements in Malaysia—is all focused on helping our customers to transform their businesses with NetSuite. We at NetSuite continue to ensure that our customers, wherever they do business in the world, are fully future-proofed in advance of regulatory and taxation changes within and across diverse markets."
Today, approximately 24,000 companies and subsidiaries depend on NetSuite to run complex, mission-critical business processes globally in the cloud. Since its inception in 1998, NetSuite has established itself as the leading provider of enterprise-class cloud ERP suites for divisions of large enterprises and mid-sized organizations seeking to upgrade their antiquated client/server ERP systems. NetSuite continues its success in delivering the best cloud ERP/financial suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud accelerates.
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