- SST System Overhaul: Starting July 1, 2025, Malaysia will revise its Sales and Service Tax (SST) system by expanding the taxable scope to include various services at an 8% rate, aligning with the government’s 2025 Budget strategy to enhance revenue and fiscal sustainability.
- New Compliance Obligations: Businesses in newly taxable sectors, such as non-residential construction, private healthcare for non-citizens, and selected financial services, must register for SST, update accounting systems, and apply the correct tax codes on invoices. The transitional period until December 31, 2025, allows for penalty-free adjustments.
- E-Invoicing Requirements: From September 1, 2025, e-invoices in currencies other than MYR must include a Currency Exchange Rate element. Companies must update templates to include SST codes, ensuring compliance with the revised invoicing framework to avoid submission rejections and enhance operational efficiency.
Source: RTCsuite
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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.
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