- The 2025 Budget was tabled on 18 October 2024, introducing changes to Sales Tax and new taxable services under Service Tax.
- Sales Tax rates remain at 5 percent, with more goods taxed at 5 percent or 10 percent based on HS Code, while some goods are exempted.
- Sales Tax applies to all manufactured taxable goods sold, used, or disposed of, and goods imported into Malaysia from 1 July 2025.
- Manufacturers of newly taxable goods must register and charge Sales Tax.
- Service Tax scope expands to include financial services, private healthcare, rental or leasing, construction, education, and wellness or beauty services.
- Effective date for implementation is 1 July 2025.
- Intragroup relief, B2B Exemption, and transitional provisions are available for certain taxable services, subject to conditions.
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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