- Service tax rate will be increased from 6% to 8% on all taxable services starting from 1 March 2024
- Certain services such as food and beverage, telecommunication services, vehicle parking services, and logistic services will still be taxed at 6%
- The scope of service tax will be expanded to include new services such as karaoke center services, repair and maintenance services, brokerage and underwriting services (excluding financial services), and logistic services
- The applicable service tax rate depends on the date of service provision or acquisition, with a proportionate method applied for services spanning across periods before and after 1 March 2024
- If payment is received before 1 March 2024 for services performed after that date, the service tax rate remains at 6%
Source: mysst.customs.gov.my
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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