GST: No changes for legal fees

  • Community
  • Tuesday, 31 Mar 2015

Legal advice: Mohamed Hafiz (left) explaining the contents of the Sales and Purchase Agreement to his clients.

MALAYSIANS seeking legal advice and services will be glad to note that the percentage of tax imposed on legal fees will not change with the implementation of the Goods and Services Tax (GST) on April 1.

Lawyer Mohamed Hafiz Jalaludin said the current 6% service tax on legal fees for civil, criminal, conveyancing and litigation cases would be replaced by a 6% GST.

“As such, the status quo remains, except that the name of the tax has changed,” he said.

Fellow lawyer Janet Wong said the implementation of the GST would, however, result in disbursement fees being taxed.

“Clients will have to pay 6% GST on photocopied materials, travelling costs and miscellaneous fees, which was not taxable under the Sales and Services Tax system.

“But its effects are minimal since such charges are between RM50 and RM150, which means that the tax amount is only a couple of ringgit,” she said.

On another matter, lawyer Baldip Singh said there was no surge in people buying property because of the implementation of the GST.

“People are not rushing to sign sales and purchase agreements, at least that is not the case at my firm.

“I think it is mainly because property prices are escalating, making them less attractive to buyers.

“I should think that property prices will shoot up even higher after the GST is implemented because construction materials will cost more,” said Baldip.

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Government , Perak , GST , lawyer , fee


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