Further to our earlier Tax Whiz issued on 9 June 2025 regarding the review of goods for Sales Tax and the expansion of scope for Service Tax, we set out the key highlights based on the following legislations and Guides issued by the Royal Malaysian Customs Department (available only in Malay language):
Sales Tax and Service Tax legislations
a) Sales Tax (Rate of Sales Tax) Order 2025
b) Sales Tax (Goods Exempted from Sales Tax) Order 2025
c) Service Tax (Amendment) Regulations 2025
d) Service Tax (Rate of Tax) (Amendment) Order 2025
e) Service Tax (Persons Exempted from Payment of Tax) (Amendment) Order 2025
Sales Tax and Service Tax Guides
a) Guide on Transitional Rules for Changes in the Sales Tax Rate (as at 9 June 2025)
b) Guide on Rental or Leasing Services (as at 9 June 2025)
c) Guide on Construction Works Services (as at 9 June 2025)
d) Guide on Education Services (as at 9 June 2025)
e) Guide on Groups C, D and E (as at 9 June 2025)
f) Guide on Private Healthcare Services, Traditional and Complementary Medicine Services and Allied Health Services (as at 9 June 2025)
g) Guide on Financial Services version 1.0 (as at 9 June 2025).
Please click on the above header links for KPMG’s key highlights (Tax Whiz) and copies of the legislations and guides for further information.
