With the repeal of the SST Act from 01 September 2018, business are now regulated by the new Sales & Services Tax Act 2018 (SST) to replace GST that was implemented from 01st April 2015 to 30th June 2018.
The Sales Tax, a single stage tax, is levied at the import or manufacturing level. A company with a sales value of taxable goods exceeding RM500,000 in a 12-month period is liable to be registered under the Sales Tax Act 2018, which the rates varying from 5% to 10% depending on the goods in question. However, manufacturing activities of tailoring, installation incorporation of goods into building, jeweler and optician will be exempted from SST registration.
The Service Tax is a form of indirect tax imposed on any provision of taxable services made in the course or furtherance of any business by a taxable person in Malaysia. The Service Tax rate is fixed at 6%, however a specific rate of tax of RM25 is imposed upon issuance of principal or supplementary card and every subsequent year or part thereof. There is a list of services subject to services include hotels, insurance, gaming, club, legal and accounting services, employment agencies, parking, couriers, advertising, and electricity etc.
Companies who are SST-registered must file a report Bi-monthly.
We have an experienced team to assist your organization:
- Review of the SST-02 and relevant reports prior to submission
- To access risk and ensure compliance
- SST training and continuous updates
