Service Tax Exemption for MRO Activities: Policy 6/2024 and Implementation Guidelines

• Exemption from payment and imposition of Service Tax on maintenance or repair services for MRO activities
• MRO activities defined as maintenance, repair, and overhaul activities set by MIDA for aerospace and maritime sectors
• MRO service providers and recipients exempted from Service Tax
• Overseas recipients of MRO services must follow RMCD conditions
• Service Tax collected must be remitted to RMCD, no refunds for taxpayers who paid Service Tax on MRO activities
• Exemption effective from 1 March 2024 to 31 December 2027

Source: assets.kpmg.com

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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