Malaysia Service Tax: Rate Hike and Expanded Scope Effective March 1, 2024

• Malaysia’s service tax rate increased by 2% to 8% on most taxable services
• The rate hike does not apply to food and beverages, telecommunications, parking, and logistic services
• Transition rules apply for services spanning 1 March 2024
• Scope of taxable services expanded to include karaoke, maintenance and repair, brokerage and underwriting, and logistics services
• Logistics services exemption updated to reduce cascading tax effect
• Exemption now includes logistics services for directly exported goods, transhipment and transit activities, door-to-door logistics, and food and beverage delivery services through e-commerce

Source: bdo.global

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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