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Writer's pictureGSK & Associates

How will the increase in the Service Tax (SST) rate from 6% to 8% impact businesses and consumers?

We wish to draw your attention to the recent revision in the Service Tax rate, which has been increased from 6% to 8%, effective from 1 March 2024.


Man worried on SST rate increased from 6% to 8%

This amendment is in accordance with the gazetted order issued on 26 February 2024. For a copy of the gazetted order, click the link below: https://mysst.customs.gov.my/assets/document/SST%20Orders/order/PERINTAH%20CUKAI%20PERKHIDMATAN%20(KADAR%20CUKAI)%20(PINDAAN)%202024.pdf


However, the Service Tax rate will remain at 6% for certain services. These include:


- Food and beverage services

- Telecommunication services

- Parking facility services

- Logistic services


All other taxable services that are not mentioned in the list above will be subject to the new rate of 8% starting from 1 March 2024. We recommend that our clients review this new tax implementation thoroughly and make the necessary arrangements to ensure compliance.


To get a clearer understanding of your specific situation, it's essential to consult with a tax professional who can provide personalised guidance.

 

Please note that tax laws can change, and it's essential to verify the latest updates with the authority or consult a tax professional to ensure that you're submitting your tax returns based on the most recent regulations.


For further clarification, please feel free to reach out to us at gunalan@gskassociates.net or contact the manager with whom you typically engage or who oversees your organisation's tax matters.



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