On 26 February 2024, the Royal Malaysian Customs Department released the Service Tax (Rate of Tax) (Amendment) Order 2024, which was first published in the Official Gazette. This order implements the changes to the service tax, which goes into force on 1 March 2024. It includes an increase in the service tax rate from 6% to 8% for most supplies, except for food and beverages, telecommunication, parking, and logistics services, which remain at 6%. Additionally, the order outlines specific transitional regulations.
The Royal Malaysian Customs Department also published the Service Tax (Amendment) Regulations 2024 in the Official Gazette on 23 February 2024. The regulations expand the range of services subject to service tax, including karaoke centers, brokerage and underwriting services, repairs/maintenance services, and logistics. These regulations came into force on 26 February 2024. Starting from 1 March 2024, the 8% service tax rate will apply to the additional services, except for logistics, which will be taxed at 6%.
The Customs Department also published a draft guide about the service tax modifications on 7 February 2024. The finalized version will be released shortly.
