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SCHEDULE

[Subregulation 2(2)]

PART I

PRELIMINARY

Interpretation 1.
(1)
For the purposes of this Schedule—

“introductory charge” means the introductory charge for any new services supplied or offered for supply;

“promotional charge” means the charge for services which is indicated in any manner to be less than the charge at which the services, or services of the same description, were previously supplied or offered for supply;

“input tax” has the meaning assigned to it under section 2 of the Goods and
Services Tax Act 2014 [Act 762];

“output tax” has the meaning assigned to it under section 2 of the Goods and
Services Tax Act 2014;

“cheap sale price” means the price of goods which is indicated in any manner to be less than the price at which the goods, or goods of the same description, were previously sold or offered for sale;

“cost price” means the price paid on the acquisition of goods, or the price paid on the acquisition of any other goods or services for the supply of services, and the operating cost in relation to the production and sale of goods or the supply of services;

“introductory price” means the introductory price for any new goods sold or offered for sale;

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“taxable person” has the meaning assigned to it under section 2 of the Goods and
Services Tax Act 2014.

(2)
Any expression or indication, whether direct or indirect, by whatever means used or given in the course of trade or business, indicating or likely to be understood as indicating that—

(a)
the price at which the goods are offered is less than the price at which the goods, or goods of the same description, were previously sold or offered for sale; or

(b)
the charge at which the services are offered is less than the charge at which the services, or services of the same description, were previously supplied or offered for supply, shall be treated as an indication that the person using the expression or giving such indication is selling or offering to sell or supplying or offering to supply the goods or services at cheap sale price or promotional charge, as the case may be.

(3)
The expression referred to in subparagraph (2) includes the expression of
“sale”, “discount”, “reduction”, “best buy”, “best price”, “best charge”, “special price”,
“special charge”, “price crush”, “cheaper price everyday” or “offer half price”.

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PART II

WITHIN THE PERIOD FROM 2 JANUARY 2015 TO 31 MARCH 2015

Formula to determine that no increment in net profit margin of goods or services in relation to any person 2.
(1)
The formula to determine that there is no increment in the net profit margin of any particular goods sold or offered for sale, or services  supplied or offered for supply, by any person within the period from 2 January 2015 to 31 March 2015 shall be as follows:

X1 shall not exceed X0.

=

=
SP1 – (COG1 + OC1)

where

(a)
in relation to paragraph (a) of SP0, is the net profit  margin  of  the  goods or services in
Ringgit
Malaysia on 1 January 2015;

(b)
in relation to paragraph (b) of SP0, is the net  profit  margin  of  the  goods in Ringgit
Malaysia on the date the goods are sold or offered for sale immediately before the cheap sale;

(c)
in relation to paragraph (c) of SP0, is the net  profit  margin  of  the services in
Ringgit Malaysia on the date the services are supplied or offered for supply immediately before the promotion;

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(d)
in relation to paragraph (d) of SP0, is the net  profit  margin  of  the  new goods in
Ringgit Malaysia on the date the new goods are sold or offered for sale at the normal selling price;

(e)
in relation to paragraph (e) of SP0, is the net  profit  margin  of  the  new services in
Ringgit Malaysia on the date the new services are supplied or offered for supply at the normal charge;

(f)
in relation to paragraph (f) of SP0, is the net  profit  margin  of  the  goods or services in Ringgit Malaysia on the date the goods are offered for sale or the services are offered for supply, for the first time;

(g)
in relation to paragraph (g) of SP0, is the net  profit  margin  of  the  goods or services in Ringgit Malaysia on the date the goods are sold or offered for sale or the services are supplied or offered for supply for the first time above the cost price after 1 January 2015; or

(h)
in relation to paragraph (h) of SP0, is the net  profit  margin  of  the  goods or services in Ringgit Malaysia on the date the goods are sold or offered for sale or the services are supplied or offered for supply on the first day of business after 1 January 2015;

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(a)
is the selling price of goods or the charge for services on 1 January 2015 if the goods are sold or offered for sale, or the services are supplied or offered for supply on 1 January 2015;

(b)
is the selling price of goods sold or offered for sale immediately before a cheap sale price if the goods are sold or offered for sale at the cheap sale price on 1 January 2015;

(c)
is the charge for services supplied or offered for supply immediately before a promotional charge if the services are supplied or offered for supply at the promotional charge on 1 January 2015;

(d)
is the  normal selling  price of new goods sold or offered for sale immediately after an introductory price if the new goods are sold or offered for sale at the introductory price on 1 January 2015;

(e)
is the normal charge for new services supplied or offered for supply immediately after an introductory charge if the new services are supplied or offered for supply at the introductory charge on 1 January 2015;

(f)
is the selling price of goods or the charge for services on the date the goods are

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offered for sale or the services are offered for supply for the first time if the goods have never been offered for sale or the services have never been offered for supply on or before 1 January 2015;

(g)
is the selling price of goods sold or offered for sale or the charge for services supplied or offered for supply for the first time above the cost price after 1 January 2015 if the goods are sold or offered for sale or the services are supplied or offered for supply at the price or charge below the cost price on 1 January 2015; or

(h)
is the selling price of goods sold or offered for sale or the charge for  services supplied or offered for supply on the first day of business after 1 January 2015 if there is no business operation on 1 January 2015;

is the price paid on the acquisition of the goods, or the price paid on the acquisition of any other goods or services for the supply of the services, referred to in SP0;

is the operating cost in relation to the production and sale of the goods, or the supply of the services, referred to in SP0;

is the net profit margin of goods or services in
Ringgit Malaysia on the date the goods or services referred to in SP1 are sold or offered for sale,

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or supplied or offered for supply, as the case may be;

SP1
is the selling price of goods sold or offered for sale, or  the  charge  for  services  supplied  or offered for supply on any date from 2 January 2015 to 31 March 2015;

COG1
is the price paid on the acquisition of the goods, or the price paid on the acquisition of any other goods or services for the supply of the services, referred to in SP1;

OC1
is the operating cost in relation to the production and sale of the goods, or the supply of the services, referred to in SP1.

(2)
For the purposes of subparagraph (1), the goods or services referred to in
X0 and X1 shall be the goods or services of the same description.

(3)
Notwithstanding subparagraph (1), there is no increment in the net profit margin if—

(a)
X1 exceeds X0 due to reduction of COG1 or OC1 in the course or in furtherance of business; and

(b)
SP1 does not exceed SP0.

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PART III

WITHIN THE PERIOD FROM 1 APRIL 2015 TO 30 JUNE 2016

Formula to determine that no increment in net profit margin of goods or services in relation to any taxable person 3.
(1)
The formula to determine that there is no increment in the net profit margin of any particular goods sold or offered for sale, or services  supplied or offered for supply, by any taxable person within the period from 1 April 2015 to 30 June 2016
shall be as follows:

X2 shall not exceed X0.

=
SP0 – [(COG0 + OC0) – (STR0 + IT0)] – OT0

=
SP2 – [(COG2 + OC2) – (STR2 + IT2)] – OT2
where

(a)
in relation to paragraph (a) of SP0, is the net  profit  margin  of  the  goods or services in
Ringgit
Malaysia on 1 January 2015;

(b)
in relation to paragraph (b) of SP0, is the net  profit  margin  of  the  goods in Ringgit
Malaysia on the date the goods are sold or offered for sale immediately before the cheap sale;

(c)
in relation to paragraph (c) of SP0, is the net  profit  margin  of  the services in
Ringgit Malaysia on the date the services are supplied or offered for supply immediately before the promotion;

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(d)
in relation to paragraph (d) of SP0, is the net  profit  margin  of  the  new goods in
Ringgit Malaysia on the date the new goods are sold or offered for sale at the normal selling price;

(e)
in relation to paragraph (e) of SP0, is the net  profit  margin  of  the  new services in
Ringgit Malaysia on the date the new services are supplied or offered for supply at the normal charge;

(f)
in relation to paragraph (f) of SP0, is the net  profit  margin  of  the  goods or services in Ringgit Malaysia on the date the goods are offered for sale or the services are offered for supply, for the first time;

(g)
in relation to paragraph (g) of SP0, is the net  profit  margin  of  the  goods or services in Ringgit Malaysia on the date the goods are sold or offered for sale or the services are supplied or offered for supply for the first time above the cost price after 1 January 2015; or

(h)
in relation to paragraph (h) of SP0, is the net  profit  margin  of  the  goods or services in Ringgit Malaysia on the date the goods are sold or offered for sale or the services are supplied or offered for supply on the first day of business after

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1 January 2015;

(a)
is the selling price of goods or the charge for services on 1 January 2015 if the goods are sold or offered for sale, or the services are supplied or offered for supply on 1 January 2015;

(b)
is the selling price of goods sold or offered for sale immediately before a cheap sale price if the goods are sold or  offered for sale at the cheap sale price on 1 January 2015;

(c)
is the charge for services supplied or offered for supply immediately before a promotional charge if the services are supplied or offered for supply at the promotional charge on 1 January 2015;

(d)
is the  normal selling  price of new goods sold or offered for sale immediately after an introductory price if the new goods are sold or offered for sale at the introductory price on 1 January 2015;

(e)
is the normal charge for new services supplied or offered for supply immediately after an introductory charge if the new services are supplied or offered for supply at the introductory charge on 1 January 2015;

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(f)
is the selling price of goods or the charge for services on the date the goods are offered for sale or the services are offered for supply for the first time if the goods have never been offered for sale or the services have never been offered for supply on or before 1 January 2015;

(g)
is the selling price of goods sold or offered for sale or the charge for services supplied or offered for supply for the first time above the cost price after 1 January 2015 if the goods are sold or offered for sale or the services are supplied or offered  for supply at the price or the charge below the cost price on 1 January 2015; or

(h)
is the selling price of goods sold or offered for sale or the charge for services supplied or offered for supply on the first day of business after 1 January 2015 if there is no business operation on 1 January 2015;

is the price paid on the acquisition of the goods, or the price paid on the acquisition of any other goods or services for the supply of the services, referred to in SP0;

is the operating cost in relation to the production and sale of the goods, or the supply of the services, referred to in SP0;

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STR0
is the special refund of sales tax in respect of the goods referred to in COG0 held on hand which is claimed under the Goods and Services Tax
Act 2014;

IT0
is the input tax attributable to—

(a)
the goods referred to in COG0;

(b)
any other goods or services referred to in COG0 which are acquired for the supply of the services; or

(c)
OC0, entitled to be credited against the output tax under the Goods and Service Tax Act 2014;

OT0
is the output tax imposed on the goods or services referred to in SP0 under the Goods and
Services Tax Act 2014;

is the net profit margin of goods or services in
Ringgit Malaysia on the date the goods or services referred to in SP2 are sold or offered for sale, or supplied or offered for supply, as the case may be;

is the selling price of goods sold or offered for sale, or  the  charge  for  services  supplied  or offered for supply on any date from 1 April 2015
to 30 June 2016;

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COG2
is the price paid on the acquisition of the goods, or the price paid on the acquisition of any other goods or services for the supply of the services, referred to in SP2;

OC2
is the operating cost in relation to the production and sale of the goods, or the supply of the services, referred to in SP2;

STR2
is the special refund of sales tax in respect of the goods referred to in COG2 held on hand which is claimed under the Goods and Services Tax
Act 2014;

IT2
is the input tax attributable to—

(a)
the goods referred to in COG2;

(b)
any other goods or services referred to in COG2 which are acquired for the supply of the services; or

(c)
OC2, entitled to be credited against the output tax under the Goods and Service Tax Act 2014;

OT2
is the output tax imposed on the goods or services referred to in SP2 under the Goods and
Services Tax Act 2014.

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(2)
For the purposes of subparagraph (1), the goods or services referred to in
X0 and X2 shall be the goods or services of the same description.

(3)
Notwithstanding subparagraph (1), there is no increment in the net profit margin if—

(a)
X2 exceeds X0 due to reduction of COG2 or OC2 in the course or in furtherance of business;

(b)
the reduction of COG2 or OC2 is not due to the changes from the tax imposed under the Sales Tax Act 1972 [Act 64] and the Service Tax
Act 1975 [Act 151] to the tax imposed under the Goods and
Services Tax Act 2014; and

(c)
SP2, excluding any tax imposed under the Goods and Services Tax
Act 2014, does not exceed SP0.

Formula to determine that no increment in net profit margin of goods or services in relation to any person other than taxable person 4.
(1)
The formula to determine that there is no increment in the net profit margin of any particular goods sold or offered for sale, or services  supplied or offered for supply, by any person other than taxable person within the period from 1 April 2015
to 30 June 2016 shall be as follows:

X3 shall not exceed X0.

=

=
SP3 – (COG3 + OC3)

where

(a)
in relation to paragraph (a) of SP0, is the net  profit  margin  of  the  goods or services in
Ringgit
Malaysia on 1 January 2015;

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(b)
in relation to paragraph (b) of SP0, is the net  profit  margin  of  the  goods in
Ringgit Malaysia on the date the goods are sold or offered for sale immediately before the cheap sale;

(c)
in relation to paragraph (c) of SP0, is the net  profit  margin  of  the services in
Ringgit Malaysia on the date the services are supplied or offered for supply immediately before the promotion;

(d)
in relation to paragraph (d) of SP0, is the net  profit  margin  of  the  new goods in
Ringgit Malaysia on the date the new goods are sold or offered for sale at the normal selling price;

(e)
in relation to paragraph (e) of SP0, is the net  profit  margin  of  the  new services in Ringgit Malaysia on the date the new services are supplied or offered for supply at the normal charge;

(f)
in relation to paragraph (f) of SP0, is the net  profit  margin  of  the  goods or services in Ringgit Malaysia on the date the goods are offered for sale or the services are offered for supply, for the first time;

(g)
in relation to paragraph (g) of SP0, is the net  profit  margin  of  the  goods or

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services in Ringgit Malaysia on the date the goods are sold or offered for sale or the services are supplied or offered for supply for the first time above the cost price after 1 January 2015; or

(h)
in relation to paragraph (h) of SP0, is the net  profit  margin  of  the  goods or services in Ringgit Malaysia on the date the goods are sold or offered for sale or the services are supplied or offered for supply on the first day of business after 1 January 2015;

(a)      is the selling price of goods or the charge for services on 1 January 2015 if the goods are sold or offered for sale, or the services are supplied or offered for supply on 1 January 2015;

(b)
is the selling price of goods sold or offered for sale immediately before a cheap sale price if the goods are sold or offered for sale at the cheap sale price on 1 January 2015;

(c)
is the charge for  services supplied or offered for supply immediately before a promotional charge if the services are supplied or offered for supply at the promotional charge on 1 January 2015;

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(d)
is the  normal selling  price of new goods sold or offered for sale immediately after an introductory price if the new goods are sold or offered for sale at the introductory price on 1 January 2015;

(e)
is the normal charge for new services supplied or offered for supply immediately after an introductory charge if the new services are supplied or offered for supply at the introductory charge on 1 January 2015;

(f)
is the selling price of goods or the charge for services on the date the goods are offered for sale or the services are offered for supply for the first time if the goods have never been offered for sale or the services have never been offered for supply on or before 1 January 2015;

(g)
is the selling price of goods sold or offered for sale or the charge for services supplied or offered for supply for the first time above the cost price after 1 January 2015 if the goods are sold or offered for sale or the services are supplied or offered  for supply at the price or the charge below the cost price on 1 January 2015; or

(h)
is the selling price of goods sold or offered for sale or the charge for services

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supplied or offered for supply on the first day of business after 1 January 2015 if there is no business operation on 1 January 2015;

is the price paid on the acquisition of the goods, or the price paid on the acquisition of any other goods or services for the supply of the services, referred to in SP0;

is the operating cost in relation to the production and sale of the goods, or the supply of the services, referred to in SP0;

is the net profit margin of goods or services in
Ringgit Malaysia on the date the goods or services referred to in SP3 are sold or offered for sale, or supplied or offered for supply, as the case may be;

SP3
is the selling price of goods sold or offered for sale, or  the  charge  for  services  supplied  or offered for supply on any date from 1 April 2015
to 30 June 2016;

COG3
is the price paid on the acquisition of the goods, or the price paid on the acquisition of any other goods or services for the supply of the services, referred to in SP3;

OC3
is the operating cost in relation to the production and sale of the goods, or the supply of the services, referred to in SP3.

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(2)
For the purposes of subparagraph (1), the goods or services referred to in
X0 and X3 shall be the goods or services of the same description.

(3)
Notwithstanding subparagraph (1), there is no increment in the net profit margin if—

(a)
X3 exceeds X0 due to reduction of COG3 or OC3 in the course or in furtherance of business;

(b)
the reduction of COG3 or OC3 is not due to the changes from the tax imposed under the Sales Tax Act 1972 and the Service Tax
Act 1975 to the tax imposed under the Goods and Services Tax
Act 2014; and

(c)
SP3 does not exceed SP0.

Made 24 December 2014

[KPDN(BUU)26/5/48; PN(PU2)695/VII]

DATO’ SRI HASAN BIN MALEK
Minister of Domestic Trade, Co-operatives and Consumerism

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