- Construction work services in Malaysia are subject to a 6% service tax from 1 July 2025, except for purely residential buildings and related public facilities.
- Contractors must register for service tax if taxable construction services exceed RM1.5 million in any 12-month period.
- Service tax applies only to the service portion if goods and services are invoiced separately; otherwise, the full contract value is taxable.
- Exemptions include B2B transactions between registered contractors, services to federal/state governments, places of worship, and local authorities (until 30 September 2025).
- Non-reviewable contracts signed before 1 July 2025 and duly stamped are exempt from service tax for work performed between 1 July 2025 and 30 June 2027, under certain conditions.
Source: mysst.customs.gov.my
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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