Transitional Guidelines on Changes to Service Tax Effective March 1, 2024

Reference is made to FMM’s Circular CD/3/2024 dated January 4, 2024 on the Changes in Rate of Tax Under Service Tax 2018. The Royal Malaysian Customs Department (RMCD)in their notification dated February 7, 2024, has published the following transitional guidelines which will apply to implement the changes to the service tax effective March 1, 2024:

1. Change in Service Tax Rate (Increase in service tax rate from 6% to 8% for all of the existing taxable services, except for telecommunications services and provision of parking spaces services): https://old.fmm.org.my/upload/PanduanPeralihan Perubahan Kadar Cukai Perkhidmat.pdf
2. Imposition of Service Tax on Logistics Services at 6%: https://mcusercontent.com/7e6286d4fb864aba9383d50fa/files/ae60697a-60d8-96cc-d91e-337e6ea1d493/Draf_Panduan_Perkhidmatan_Logistik.01.pdf

Please note that the above guidelines are still in DRAFT format and will be finalised once the gazette order is issued by the Ministry of Finance (MOF).

For enquiries, please contact Ms Farah Nabilah of the FMM Secretariat at Tel: 03-62867321 or Email: [email protected]