- Effective 1 July 2025, Malaysia revised sales and service tax to increase revenue and broaden the tax base.
- Sales tax changes include reclassification of certain items from 0% to 5% and 10%.
- Imported oranges, apples, mandarin oranges, and kurma are exempt from sales tax.
- Service tax of 8% applies to leasing or rental services exceeding RM 1,000,000, with specific exemptions.
- Construction services with revenue over RM1.5 million are subject to a 6% service tax, with certain exemptions.
- Financial services face an 8% service tax on fee-based services, with several exemptions.
- Private healthcare services for non-citizens are taxed at 6%, with exemptions for Malaysian citizens.
- Education services are subject to service tax changes.
Source: global.ecovis.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.
