- Malaysia announced revisions to sales tax and expanded service tax scope effective 1 July 2025
- Aims to strengthen fiscal position by increasing revenue and broadening tax base
- Sales tax rate remains unchanged for essential goods
- Sales tax of 5% or 10% applies to discretionary and non-essential goods
- Service Tax scope expanded to include new services like leasing, construction, financial services, private healthcare, education, and beauty services
- Rental or leasing of tangible assets: 8% tax rate with MYR 500,000 annual revenue threshold
- Construction services: 6% tax rate with MYR 1.5 million revenue threshold
- Financial services: 8% tax rate with MYR 500,000 revenue threshold
- Beauty services: 8% tax rate with MYR 500,000 annual revenue threshold
- Essential goods like rice, vegetables, and medicine remain exempt from sales tax
- 5% sales tax applies to items like imported fruits and essential oils
- 10% sales tax on premium items like racing bicycles and antique art
- Locally grown fruits in Malaysia are exempt from sales tax
- Imported fruits subject to sales tax
- Updated registration guidelines for companies newly subject to Service Tax
- Companies must register by August 2025 if revenue threshold is met in July
- Grace period until December 2025 to comply and avoid penalties
Source: regfollower.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.
