Effective from 1 July 2025, the Malaysia service tax scope will expand to include rental or leasing.
For rental and leasing, service tax at 8% applies to commercial property, office, warehouse, machinery, photocopier and vehicle. Businesses exceeding the RM1,000,000 threshold within 12 months period need to register.
Understanding the scope, thresholds, exemptions, and compliance obligations is crucial to ensure accurate service tax treatment and avoid penalties. There are exemptions available for rental or leasing, e.g. sub-rent of commercial properties.
Brochure
— Course Fee: RM 490.00 (Inclusive of 8% Service Tax) —
Module 1: Service Tax Legislation Overview
- Service Tax Act 2018 and other key legislation provisions
- Definition of taxable services
- Mandatory registration:
- Taxable threshold
- Who must register?
- SST threshold computation
- Effective date on 1 July 2025
Module 2: Service Tax on Rental and Leasing
- Scope of Rental or Leasing Services
- Registration threshold
- Taxable rental and leasing services
- Premises, machinery, vehicles and other tangible assets
- Imported service tax
- Disbursement vs reimbursement
Module 3: Transitional Period
- Contracts spanning pre- and post- implementation period, i.e. 1st July 2025
Module 4: Exemptions Available
- B2B Exemption criteria:
- Both parties are registered under Group K and carrying on the same business activities
- For re-leasing, not self-use
- Micro and Small Enterprises are exempted
- Non-reviewable contract
- Group relief applicable? If yes, how to apply?
Module 5: Case Study on Various Scenarios
- How to determine your customers’ annual revenue in order not to charge service tax? E.g. Photocopier rental provider who has many customers
- Determined the threshold value for individual property owners
- The location of the tangible assets
Module 6: SST-02 Return Submission
- How to submit SST-02 accurately:
- Bi-monthly via MySST portal, e.g.
- Value of taxable services
- Exempted amounts
- SST payment deadline
- Bi-monthly via MySST portal, e.g.