- RMCD released an amended Service Tax Policy for Financial Services, Rental or Leasing, Private Healthcare, and Private Education.
- Exemption from penalties for late registration, submission, payment, and errors is removed in STPs 1/2025, 2/2025, 4/2025, and 5/2025.
- Despite removal in STPs, exemption remains until 31 December 2025 as per Ministry of Finance announcement.
- Service Tax Policy 1/2025 Amendment No.1 applies a blanket exemption on financial services in Group H, excluding those in Appendix A taxable from 1 July 2025.
- Appendix A includes conventional and Islamic banking, investment banking, BURSA Malaysia services, and other previously taxable services.
- Exemption for non-reviewable contracts updated to fixed unchanged contract value and applicable if not subject to tax before 1 July 2025.
- Exemption for acquisition of financial services updated for registered persons in Group H, removing outward remittance services from exemption scope.
- Exemption does not apply to brokerage services exempt from tax related to stock trading and other exempt services.
Source: deloitte.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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