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Tuesday, September 23, 2014

Iris clinches GST tourist refund contract (Edge)

Iris Corp Bhd announced yesterday it has been awarded the contract for the implementation of the goods and services tax tourist refund scheme by the Royal Malaysian Customs Department.

Iris, through its subsidiary has set up a joint venture company (JV) with Swiss-based Global Blue SA for the project. Iris has a 51% stake in the JV with Global Blue owning 49%.

Under the tender, the JV, known as IRIS Global Blue TRS Malaysia Sdn Bhd, will receive an administrative fee of 15% of the total tax refunds by tourists .

The two-year contract comes with an extension option of another two years. Iris plans to invest RM155 million in the project.

“It will contribute to the bottom line for sure, maybe not so much in 2015 during the initial roll-out, but maybe in the second year. It all depends on the number of tourist arrivals,” said group managing director Datuk Tan Say Jim at a press briefing after Iris’ annual general meeting yesterday.

This article first appeared in The Edge Financial Daily, on September 23, 2014.

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