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: IRBM issues revised guidance on bilateral, unilateral foreign tax credits
The Inland Revenue Board of Malaysia has issued Public Ruling No. 3/2026 on 22 May 2026, guiding the application of bilateral and unilateral tax credits where a Malaysian tax resident is subject to taxation in both Malaysia and a foreign
Read More
Malaysia: IRBM issues new FAQs on Pillar Two global minimum tax
The Inland Revenue Board of Malaysia (IRBM) has released updated guidance on the Pillar Two global minimum tax regime, clarifying filing obligations for local businesses. In a 22 May 2026 update, the Inland Revenue Board published Frequently Asked
Read More
Malaysia court rules service fees and late-payment interest on credit sales constitute business income
The Inland Revenue Board of Malaysia (IRBM) has released a case report on a recent High Court ruling addressing whether service charges and late-payment interest arising from credit sales should be treated as business income under Section 4(a) or as
Read MoreMalaysia issues new exchange rate rules for sales and service tax invoicing
Malaysia’s Royal Malaysian Customs Department (RMCD) has issued Public Ruling No. 1/2026 (PR 1/2026) addressing the foreign currency exchange rate applicable for sales tax and service tax compliance. Effective 31 March 2026, it mandates that
Read MoreMalaysia introduces income tax exemption for tour operators
The Malaysian government has issued the Income Tax (Tour Operator Company) (Exemption) Order 2026 on 7 April 2026. The order applies for the year of assessment (YA) 2026 to YA 2027, setting out a targeted tax incentive for qualifying tourism
Read MoreMalaysia issues rules on accelerated capital allowances for e-invoicing implementation
Malaysia has gazetted the Income Tax (Accelerated Capital Allowance) (Information and Communication Technology Equipment for the Implementation of Electronic Invoice) Rules 2026 and the Income Tax (Accelerated Capital Allowance) (Development Cost
Read More