Amendments to the expanded SST Scope and Registration

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​​​​​​Following the initial announcement on 9 June 2025 on the expanded scope of the Sales and Service Tax (“SST”), the Ministry of Finance (“MOF”) has actively monitored public feedback and engaged with industry stakeholders on the proposed expansion. On 27 June 2025, the MOF issued a media release outlining three (3) key amendments to the SST regime. These changes took effect on 1 July 2025, reflecting the government's intent to minimize the impact on basic consumption items and small businesses.
      

Details

Selected imported fruits to be exempted from Sales Tax

Imported apples, oranges, mandarin oranges, and dates will be exempted from Sales Tax. These items were previously subject to Sales Tax under the expanded scope announced on 9 June 2025.
     
In line with the government’s commitment to ease the cost of living, the MOF also reaffirmed that essential daily goods, whether locally produced or imported, including rice, chicken, beef, vegetables, eggs, and local fish varieties such as selar, tongkol, cencaru, and sardines, whether fresh, frozen, or chilled, remain exempted from Sales Tax.
     

Higher annual sales threshold for Service Tax to ease burden on businesses

To reduce the number of small businesses affected by the Service Tax revision, the government has increased the Service Tax registration threshold from RM500,000 to RM1 million for the following sectors: 
    

​Service Category
​​


​Service Tax Rate

Registration Threshold​
​Previous

​Revised
Group K
Leasing or Rental
​8 %
​RM 500,000
​RM 1 million
Group H
Financial Services
​8 %
(on fees/commission based financial services)
​RM 500,000
​RM 1 million
     
Additionally, the annual turnover threshold for Micro, Small, and Medium Enterprises (MSMEs) that qualify for exemption from Service Tax on Rental or Leasing services has also been increased from RM500,000 to RM1 million.
    

Beauty Services are removed from taxable services

The proposed inclusion of Beauty Services (Wellness Centres) under Group C in the Service Tax expansion announced on 9 June 2025 has been reversed. The MOF has decided not to proceed with this expansion to include beauty services, including: 
  • Manicure and pedicure services;
  • Facial treatments; and
  • Barber and hairdressing services.
    

Registration on the MySST portal

The Royal Malaysian Customs Department (RMCD) has announced that business entities anticipating to exceed the new registration threshold may apply for voluntary registration starting from 28 June 2025. 
     
The effective date of voluntary registration will be as follows:
  • 1 July 2025 for applications made in the month of June 2025
  • 1 August 2025 for applications made in the month of July 2025
     
Additionally, existing SST-registered persons can update their registration details via the MySST portal starting from 20 June 2025 to reflect changes arising from the recent SST expansion.

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