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Malaysia Service Tax rate - 6% to 8%
Effective from 1 March 2024, the SST rate in Malaysia will be increased from 6% to 8%. The new SST rate will be implemented on all taxable services except for the following services: -
- Food and beverage services;
- Telecommunication services
- Provision of parking spaces services; and
- Logistics services.
Credit card and charge card services remain at a specific rate of RM25 per year.
The Royal Malaysian Customs Department (RMCD) had issued a draft guide on Transitional Rule dated 7 February 2024 for the change of service tax rate from 6% to 8%.
Illustration of the transitional rules:
| Prior to 1.3.2024 | On or after 1.3.2024 | ||||||
|---|---|---|---|---|---|---|---|
| Taxable Services provided (RM) | Invoice issued (RM) | Payment received (RM) | Taxable Services provided (RM) | Invoice issued (RM) | Payment received (RM) | Service tax rate | |
| 1 | 8,000 | 8,000 | 4,000 | - | - | 4,000 | 6% x RM8,000 |
| 2 | - | 10,000 | 4,000 | 10,000 | - | 6,000 | 6% x RM4,000 8% x RM6,000 |
Taxable services spanning 1 March 2024
| Prior to 1.3.2024 | On or after 1.3.2024 | ||||||
|---|---|---|---|---|---|---|---|
| Taxable Services provided (RM) | Invoice issued (RM) | Payment received (RM) | Taxable Services provided (RM) | Invoice issued (RM) | Payment received (RM) | Service tax rate | |
| 1 | 2,000 | 12,000 | 12,000 | 10,000 | - | - | 6% x RM12,000 |
| 2 | 6,000 | 36,000 | 18,000 | 30,000 | - | 18,000 | 6% x RM6,000 6% x RM12,000 8% x RM18,000 |
| 3 | 2,000 | 12,000 | - | 10,000 | - | 12,000 | 6% x RM2,000 8% x RM10,000 |
| 4 | 6,000 | 36,000 | - | 30,000 | - | 36,000 | 6% x RM6,000 8% x RM30,000 |