Updates to Service Tax in 2024

The Malaysian Government has gazetted the changes to Service Tax regulations. Click on the links below for more details

The service tax, including logistics and digital services has been gazetted. (english translation on page 5)

According to the Service Tax (Rate of Tax) Amendment Order signed off by Finance Minister II Datuk Seri Amir Hamzah Azizan, the prevailing 6% tax will be upped to 8%. Goods including courier services of documents, packages or goods originating from a place outside of Malaysia headed to another place outside the country, those with the last point of exit within Malaysia to a place outside Malaysia, are exempted from the tax.

Effective from 1 March, the service tax rate on digital services provided by FRP will increase from 6% to 8%. Service tax shall be charged at the rate of 8% on any digital service provided. (english translation on page 11)