- Sales and Service Tax scope expanded effective 1 July 2025
- Grace period until 31 December 2025 for transition
- No penalties for compliance efforts during grace period
- Sales tax rates: 0% for essential goods, 5% or 10% for premium and non-essential goods
- Service tax expanded to various sectors with different rates
- 8% service tax for leasing and rental services
- 6% service tax for construction, healthcare, and education services
- Beauty services excluded from expanded SST
- Registration threshold for service tax on leasing, rental, and financial services raised to RM1 million
- Select imported fruits exempted from Sales Tax
- 12-month exemption for non-reviewable contracts from 1 July 2025 to 30 June 2026
- Exemption applies to contracts signed and stamped on or before 9 June 2025
Source: mondaq.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.
Latest Posts in "Malaysia"
- Malaysia Reduces Service Tax on Rental and Leasing Services to 6% Effective January 2026
- MyInvois Portal FAQs – Key Features and Practical Guidance (Updated 9 March 2026)
- Malaysia 2026 Sales and Service Tax Updates: New Rates, Exemptions, and Refund Mechanisms
- Malaysia Reduces Service Tax on Rental and Leasing to 6% with New Refund Framework
- Malaysia Extends Service Tax Exemption for Construction, Clarifies Rules for Religious Buildings
