Malaysia Sales and Service Tax goes live
Malaysia has now passed (‘gazetted’) its implementing legislation for the new Sales and Service Tax. It becomes effective today, 1 September 2018.
Goods produced locally or imported are now taxed at a standard rate of 10%. A range of goods are subject to a reduced rate of 5%, including basic foodstuffs; petroleum oils; construction materials; IT, telecommunications and printing hardware and materials; and timepieces. Oil and petroleum are subject to quantity-based rates.
The Service Tax rate is 6%.
SST replaces GST
The new Malaysian government has introduced SST to replace the 6% GST, which was suspended on 1 June 2018. SST has a much narrower tax base.
Click for free Malaysian SST info