The Royal Malaysian Customs Department (RMCD) announced that it is considering a proposal to increase the service tax rate to 8% from the current 6% and expand the service tax scope—effective 1 March 2024. The service taxes increase a part of the Budget for 2024, and the scope of the service tax will include various additional services such as brokerage and underwriting services, karaoke centers, and logistics services. Under the proposal, specific taxable services, such as food and beverage, telecommunication, vehicle parking space, and logistic services, will remain subject to the current 6% service tax rate. Credit cards and charge cards will continue to be taxed at RM25 per card per year. Furthermore, payments received or invoices issued before 1 March 2024 for taxable services to be provided from 1 March 2024 to 31 August 2024 will be taxed at the existing 6% rate.
Related Posts

Malaysia updates guidelines on tax treatment of foreign capital gains
The Inland Revenue Board of Malaysia (IRBM) has issued amended technical guidelines dated 29 September 2026 on the tax
Read More
Malaysia updates small value asset capital allowance rules
Malaysia’s Inland Revenue Board (IRBM) has published Public Ruling No. 4/2026 on 30 September 2026, providing updated
Read More
Malaysia: Budget 2027 proposes MSME incentives, middle-income tax cuts, green investment measures
Malaysia’s Prime Minister and Minister of Finance presented the 2027 budget on 9 October 2026, outlining a strategic
Read More
Malaysia updates capital gains tax guidelines for unlisted shares
The Inland Revenue Board of Malaysia (IRBM) has updated its capital gains tax guidelines for unlisted shares on 21
Read More
Malaysia: 2027 budget to target cost-of-living relief amid fiscal pressures
Malaysia’s Prime Minister Anwar Ibrahim will announce the 2027 budget on 9 October 2026, signalling a shift toward
Read More
Malaysia signs multilateral agreement on GloBE information exchange (GIR MCAA)
Malaysia has signed the Multilateral Competent Authority Agreement on the Exchange of GloBE Information (GIR MCAA) on
Read More
