- The service tax rate for rental or leasing services is reduced from 8% to 6% effective 1 January 2026, with a 2% exemption applied until the change is officially gazetted.
- Service providers who overpaid service tax due to the rate change can apply for refunds by submitting required supporting documents, as detailed in appendix B of the amended policy.
- Refunds to tenants or customers must be made before service providers receive refunds from RMCD, potentially causing cash flow challenges.
- The refund process is compliance-driven, requiring thorough documentation and strong internal controls to support claims and withstand audits.
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 e-Invoice Regime: Scope, Timelines, Formats, and Key Rules from LHDNM FAQs (2026)
- Malaysia e‑Invoicing: LHDNM General FAQs (Updated 5 May 2026)
- Malaysia Issues New Rules on Exchange Rates for Sales and Service Tax Compliance
- Malaysia Sets New Rules for Foreign Currency Exchange Rates in Tax Invoicing, Effective March 2026
- Guidelines for Converting Foreign Currency to MYR in Service and Sales Tax Invoices (2026)
