- The Malaysian Government introduced the 2025 Budget on 18 October 2024 with key tax measures.
- Sales tax rates were revised for specific goods categories.
- The scope of service tax was expanded to include more taxable services.
- Changes will take effect from 1 July 2025, confirmed by the Ministry of Finance on 9 June 2025.
- Subsidiary legislations and guidelines have been issued for implementation.
- A grace period is provided until 31 December 2025 with no penalties for genuine compliance efforts.
- Six new taxable services include leasing or rental, construction, private healthcare, education, beauty, and financial services.
- Non-essential goods sales tax increased to 5 percent.
- Premium goods sales tax increased to 10 percent.
- Exemptions and registration thresholds are specified for leasing or rental and construction services.
- Financial services provided by regulated entities are taxable with certain exemptions.
Source: insightplus.bakermckenzie.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.
