The Royal Malaysian Customs Department has released the Service Tax (Amendment) (No. 2) Regulations 2024 which broadens intra-group relief to include maintenance and repair services while also revising the range of taxable services.
Amendments to taxable services
The key updates to the definition of taxable services, effective 27 November 2024, include:
- Revising the definition of a taxable person under Group C to exclude operators of premises or healthcare facilities managed by registered practitioners under the Traditional and Complementary Medicine Act 2016. Taxable persons under Group C include: dance halls, nightclubs, cabarets, karaoke centres, public houses, beer houses, health and wellness centres, and massage parlours.
- The taxable service definition for golf clubs and driving ranges has been updated and now specifies the provision or sale of alcoholic and non-alcoholic beverages, with the term “food” removed;
- The amendment clarifies that maintenance or repair services for goods and equipment fixed to residential structures, provided directly to the owner or occupant, are excluded from Group G
Intra-group relief
Intra-group relief now includes maintenance and repair services within the same company group, both locally and internationally, effective from 1 May 2024.
