Malaysia Extends Service Tax Exemption for Construction, Clarifies Rules for Religious Buildings

The exemption for non-reviewable construction contracts is extended from 30 June 2026 to 30 June 2027.
Service tax exemption is available for construction of buildings for religious worship and related public facilities, effective from 1 July 2025, subject to specific conditions.
Exemptions do not apply to commercial buildings or mixed-use developments within the same site as religious buildings, but separate applications for exemptions can be made for the religious portion.
The amendments provide greater clarity, reduce ambiguity, and emphasize the importance of proper documentation and compliance for eligibility.

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.