Friday, December 10, 2010

Pay up the 1% extra service tax on your insurance premium….


Come 1st January 2011 if you own a business you would be required to pay an extra 1% of the premium as service tax. This means an additional RM40 million in service taxes to the government coffer. Isn't this great? Sorry! if you are so unhappy....
If you are one of those insurance practitioners who is responsible to implement this additional charge, have you already started work on this? You would need to tweak your IT system and have those renewal notices ready with the new services tax % printed...
Wait.... have you given thought on whether you should be charging your clienteles for endorsements (issue to policies incepted before 1st January 2011) on 1st January and thereafter?
Rightfully this should be so... but I am not charging just as yet - I would not be tweaking the system unnecessarily as this is seriously an inconvenience for both the insurer's workforce as well as the customers. Well... not to mention having have to explain to them why you are collecting an additional 1% for bad news never travel so fast and get filtered from the mind like a spam mail.




No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...