Service Tax

Service Tax 2018

Malaysia reintroduced Sales Tax on 1 September 2018. Manufacturer and sub-contractor are liable to register with Royal Malaysia Customs Department (RMCD) in order to collect the sales tax from their client. While for those businesses that are not liable to register, you have to take into consideration of the 10% sales tax that you have to pay upon importation or to your supplier who is a manufacturer while setting your product pricing.

Let us start on guiding you to determine whether you should register your business under the Sales Tax Act 2018. We made it simple for you.

If you are carrying a business in Malaysia, then you have to proceed to Step 2. If you are not doing business, Sales Tax application is not applied to you.

If you are providing service, then you are a service provider. Please proceed to Step 3.

You may download the General Guide – Service Tax Act 2018 here. Please refer to Item 15 (Table 1) and check whether you are providing the services stated there. If yes, it means that you are providing taxable service, please proceed to Step 4. If no, you are not required to register.

If the yearly revenue is more than the amount stipulated in the list which generally is RM500,000 (exception to some of the categories whereby the threshold is other than RM500,000), you are required to register your company here. Once you have register as a Service Tax licensee, you have to comply accordingly. Do talk to us if you need further assistance.

If your yearly revenue does not exceed RM500,000 or the respective threshold, you do not require to register. However, you have to monitor your sales amount closely, once it reached the threshold, you have to register your company and start collecting Service Tax.

Am I required to be registered under Service Tax Act?