- Malaysia’s Ministry of Finance announced changes to Sales and Service Tax effective 1 July 2025.
- Sales Tax rates remain unchanged for essential goods.
- Sales Tax of 5% or 10% applies to discretionary and non-essential goods.
- Service Tax scope expanded to include new services like leasing, construction, financial services, private healthcare, education, and beauty services.
- Rental or leasing services taxed at 8% with a MYR 500,000 threshold and certain exemptions.
- Construction services taxed at 6% with a MYR 1.5 million threshold, excluding residential buildings.
- Financial services taxed at 8% with a MYR 500,000 threshold and several exclusions.
- Private healthcare and related services taxed at 6% with a MYR 1.5 million threshold, excluding certain facilities.
- Education services taxed at 6% with no threshold for certain high-fee services and non-citizen education.
- Beauty services taxed at 8% with a MYR 500,000 threshold.
- Essential goods like rice, chicken, and vegetables have a 0% Sales Tax.
- Selected discretionary items have a 5% Sales Tax.
- Premium items like racing bicycles have a 10% Sales Tax.
- Further clarification on Sales Tax for local fruits was issued on 11 June.
Source: orbitax.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.
