From 1st March 2024, new implementation of SST from 6% to 8%
Service Tax (Rate of Tax) (Amendment) Order 2024
Any taxable service other than taxable service relating to credit card or charge card services, provision of food and beverages services, telecommunication services, provision of parking place services or logistic services—
Service Tax Rate and Timing:
(a) Services Provided Before Effective Date: If a taxable service was provided before the effective date of the Order but spans after it, the service tax will be calculated at a rate of 8% of the service’s price, value, premium, or takaful contribution, based on the proportion of the service provided after the effective date.
(b) Services Provided On or After Effective Date with Pre-Payment: If a taxable service is provided on or after the effective date of the Order, and any payment related to that service was received before the effective date, the service tax on that pre-received payment will be charged at a rate of 6% of the service’s price, value, premium, or takaful contribution.
(c) Services for Registered Persons: For registered persons who account for service tax before the effective date of the Order, any payment received or invoice issued before the effective date for services to be provided after it will incur an 8% service tax based on the service’s price, value, premium, or takaful contribution.
(d) Imported Taxable Services: If an imported taxable service was acquired before the effective date of the Order but spans after it, the service tax will be calculated at a rate of 8% of the service’s price, value, premium, or takaful contribution, based on the proportion of the service provided after the effective date.
(e) Due Taxes for Imported Services: If taxes are due before the effective date of the Order for imported taxable services acquired on or after the effective date, the service tax will be charged at a rate of 6% of the service’s price, value, premium, or takaful contribution.
For more information, refer here.
New Guidelines on SST Service Tax
New implementation of 6% SST
- Logistic Industry
Maintain Annual Fee at RM25
- Credit card & debit card
What remain at 6%?
- Food & beverage
- Telecommunication industry
- Parking space service
Tax exemption
- Residential maintenance
- Life insurance
- Catering distribution
- Asset sales
- Overseas logistics
Logistics Providers Subject to 6% Service Tax
- Supply chain logistics management solutions
- Warehouse management solutions
- Freight forwarding solutions
- Port/airport logistics services
- Shipping solutions
- Aviation services/cold chain logistics solutions
- Goods transportation
- Distribution and logistics services
- Packages/documents transported via e-commerce platforms
- Express delivery solutions authorized under Section 10 of the Postal Services Act 2012
- Individuals approved as customer agents under Section 90(2) of the Customs Act 1967
Logistics services that is exempted from tax
- Express transportation and delivery services of documents, packages or goods;
- Sent from one location abroad to another location
- Sent from the final domestic exit point to abroad
- Sent from abroad to the first point of entry into the country
- From one aircraft or ship to another aircraft or ship destined for abroad in domestic customs ports or airports until the goods pass through the aircraft or ship out of the country
- From the moment an aircraft or ship arrives at a domestic customs port or airport, transport documents, packages, or goods to a customs warehouse, a bonded warehouse, or a location approved by the Director of Customs, until the goods are dispatched abroad on the aircraft or ship.
- Catering delivered through e-commerce platforms and express delivery services.
