1. What is Commission with SST?

Commission with SST (Sales and Service Tax) in Malaysia is the total amount payable to a salesperson or agent, including the government-mandated tax on services. This calculation is essential for businesses to accurately account for tax liabilities.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Sale\ Price \) — The total value of the sale in MYR
• \( Commission\ Rate \) — The agreed percentage commission
• \( SST\ Rate \) — The current SST rate (typically 6% in Malaysia)

Explanation: The formula first calculates the base commission, then adds the SST amount calculated on the base commission.

3. Importance of SST in Commission

Details: In Malaysia, SST applies to most services, including sales commissions. Businesses must account for SST when calculating total commission payments to remain tax compliant.

4. Using the Calculator

Tips: Enter the sale price in MYR, commission rate as a percentage (e.g., 5 for 5%), and the current SST rate (default is 6%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current SST rate in Malaysia?
A: As of 2023, the standard SST rate for services is 6%, though some services may have different rates.

Q2: Who is responsible for paying SST on commissions?
A: The service provider (the one paying the commission) is responsible for collecting and remitting SST to the government.

Q3: Is SST charged on all types of commissions?
A: Most service-based commissions are subject to SST, but there are some exemptions. Consult with a tax professional for specific cases.

Q4: How often should I calculate commission with SST?
A: Every commission payment should include the SST calculation to ensure proper accounting and tax compliance.

Q5: Can I claim back SST paid on commissions?
A: Registered businesses can typically claim SST input tax credit, subject to certain conditions under Malaysian tax law.