-
Starting 1 July 2025, Sales Tax rates in Malaysia will increase to 5–10% on luxury and non-essential goods, while essential items will retain their existing lower tax rates.
-
The Service Tax will expand to cover sectors like leasing, construction, education for non-Malaysians, wellness, and private healthcare, with rates ranging from 6% to 8% depending on the service.
-
Businesses are granted a compliance grace period until 31 December 2025, with exemptions available for B2B services, intra-group transactions, and qualifying contracts under the updated legislation.
Source: vatcalc.com
Latest Posts in "Malaysia"
- Malaysia’s Indirect Tax Reforms: Challenges, Compliance, and Future Budget Expectations
- Malaysia Issues Sales Tax Exemption Guidance for Manufacturers; Refund Applications Due by November 30, 2025
- Malaysia’s 2025 Tax Reforms: Mandatory E-Invoicing, MSME Support, and New Foreign Tax Branch
- Malaysia Expands E-Invoice Restrictions to Electricity and Telecom Sectors Starting 2026
- Malaysia prohibits consolidated e-invoices for additional transactions
