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Royal Malaysian Customs Department Provides Draft Guide on Increase in Service Tax Rate and Expanded Scope

The Royal Malaysian Customs Department has released a draft guide on the upcoming service tax rate increase and expanded scope, to be effective from 1 March 2024. The draft guide includes key points such as the increased service tax rate from 6% to 8% for most services, with exceptions for certain services remaining at 6%. It also expands the scope of taxable services to include karaoke center services, maintenance and/or repair services, brokerage and underwriting services, and logistics services. Transitional rules for the applicable service tax rate are also outlined in the guide. Furthermore, a separate guide will be issued for digital services provided by foreign registered persons.

Source Orbitax


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