Expanded SST comes into effect July 1

[The Room]

Govt to impose 10% sales tax on non-essentials, service tax expanded

PETALING JAYA: The 0% sales tax rate for basic necessities will be maintained while a 5% to 10% rate will be imposed on non-essential goods, the finance ministry announced this evening.

Meanwhile, the service tax will be expanded to include rent, lease, construction, financial services, private healthcare and education.

“This expansion however would come with some exemptions to avoid double taxation and ensure that Malaysians are not taxed for certain services,” finance minister II Amir Hamzah Azizan said in a statement.

In November, Amir said the expansion of the sales and services tax was expected to generate RM51.7 billion in revenue in 2025.

This would represent an additional revenue of RM5 billion over the current SST collection forecast of RM46.7 billion.

 

[azham]

Oleh kerana ada lagi tax baru maka kita boleh berkaraoke…

 

[The Room]

Slide 10: "Construction Work Services"

This slide details the Service Tax on Construction Work Services at a 6% rate.

Registration Requirement: Providing infrastructure, commercial, and industrial building construction services. The taxable service value must reach RM1.5 million within 12 months to lighten the tax compliance burden for small and medium contractors.

Non-Taxable Services: Construction work services for residential buildings and public facilities related to residential housing.

Exemptions: Business-to-business (B2B) exemption to avoid double taxation. Non-reviewable contracts receive a 12-month exemption from the effective date

 

[azham]

Baik buat gst terus

Harap yang akan promote GST tu ialah poster lukisan Fahmi.

 

[The Room]

This document outlines Malaysia's tax policies, specifically covering two main areas:

1. Sales Tax (Cukai Jualan - CJ)

Basic Necessities (0% rate): Essential items like rice, chicken, beef, fish, vegetables, fruits, bread, milk, and basic food staples are exempt from sales tax to ensure affordability for the public.

Selected Items (5% rate): Certain goods including king crab, salmon, imported luxury foods, essential oils, and premium fabrics have been increased from 0% to 5% tax rate.

Premium Items (10% rate): Luxury goods such as premium skincare and antique items are taxed at 10%.

2. Service Tax (Cukai Perkhidmatan - CP)

The document details various service tax rates and exemptions:

Rental/Lease Services (8%): Applied to property rentals, with specific exemptions for:
- Diplomatic missions and international organizations
- Small and medium enterprises (SMEs) with annual turnover under RM500,000
- Business-to-business transactions for tax avoidance prevention
- 12-month exemption periods for certain contracts

Construction Services (6%): Applied to construction services above RM1.5 million threshold, with exemptions for small contractors and certain business arrangements.

Financial Services (8%): Applied to financial services based on fees or commissions, with exemptions for basic banking services and Shariah-compliant transactions.

Healthcare Services (6%): Applied to private healthcare services above RM1.5 million threshold, with special provisions for Malaysian citizens and traditional medicine practices.

Education Services (6%): Applied to private education with annual fees exceeding RM60,000, with exemptions for underprivileged Malaysians and considerations for higher education accessibility.

Beauty Services (8%): Applied to beauty and wellness services exceeding RM500,000 over 12 months, including treatments like facials and hair styling.

The policy aims to balance revenue generation with protecting essential services and supporting small businesses while ensuring broader industry compliance.

 

[The Room]

Selected Items (5% rate): Certain goods including king crab, salmon, imported luxury foods, essential oils, and premium fabrics have been increased from 0% to 5% tax rate.


All this can be like from everything to nothing

 

[pijoe]

kita mesti sokong.... baru betul bilion biloin punya pelaburan

 

[The Room]

Insurance akan kena additional tax
Get ready siapa yg ada medical card tu
Bayaran bulanan naik lagi

 

[The Room]

When they touch rental and construction, it is going to be fucuk up, inflation sure up up.

My boss going to rage because he got tons of property and all start effective 1st July 2025 instead of 1st Jan 2026, within such short notice tenant won't give a fucuk and ask u to absorb the service tax on your own.

Those who have property on rental, buck up

 

[The Room]

Don't surprise pikachu when lawyer firm, construction firm, accounting firm and hospital add more hidden charge.