- Businesses can either charge 8% service tax with a 2% exemption shown as a negative line item, or charge 6% with a note about the 2% exemption on invoices for rental or leasing services.
- In SST-02 returns, services must be declared at the 6% rate, and the 2% exemption must be disclosed under field 18(c)(3).
- The service tax policy now extends MSME exemptions to medium-sized enterprises, raises the sales threshold to MYR 1.5 million, and provides retroactive exemptions for MSMEs registered by 31 December 2025.
- Landlords and service providers must clearly state the exemption on invoices, make proper declarations, and verify tenant eligibility to comply with RMCD requirements.
- The 2% exemption reflects the reduction of the service tax rate from 8% to 6% for rental and leasing services, pending formal legislative changes.
Source: taxathand.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.
Latest Posts in "Malaysia"
- Malaysia considers SST input tax credits for manufacturing and construction
- Malaysia Allows Backdated E-Invoices Under the Special Voluntary Disclosure Programme
- MyInvois SVDP Versions 1.2 and 1.3 Enable Back-Dated e-Invoice Submissions
- Finance Ministry Reaffirms SST as Preferred Tax System Over GST
- Malaysia Budget 2027 Proposes Targeted Sales and Service Tax Relief
