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Malaysia Sales and Service Tax goes live - sfconsultingbd - 06-16-2019
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, construction materials, petroleum oils, 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 Malaysian new government has introduced SST to replace the 6% GST, which was suspended on 1 June 2018. SST has a much narrower tax base.