Please Try a Different Browser

You are using an outdated browser that is not compatible with our website content. For an optimal viewing experience, please upgrade to Microsoft Edge or view our site on a different browser.

If you choose to continue using this browser, content and functionality will be limited.

country-icon Malaysia

10.31.23

Service Tax increase to 8% in 2024

As part of Malaysia's 2024 Budget proposals, it is proposed to raise the Service Tax by 2%, from the current rate of 6% to 8%. Food, beverages, telecommunications, and other things that are primarily consumer-based will not be affected. The proposed 2% increase is expected to raise an additional revenue of RM3 billion in the first year.

During the 2024 Post-Budget Debate, the Treasury Secretary, Datuk Jojan Mahmood Merican, stated that it was necessary to broaden the tax base. He also discussed the reintroduction of the GST system, stating that “We are studying what is the best way to do this (implementing the GST). But, obviously, there are some areas that we need to improve, how do we ensure the efficiency of refunds and so on,”

Further, the Budget introduces a new Luxury Tax, which is expected to apply to the sale of jewelry and watches.

Budget 2024 was presented to Parliament on October 13, but timelines for these proposed rate changes have yet to be determined.

Schedule a Free Consultation

Let us show you how we can support your business to send 100% compliant e-invoices in 54 countries. Please provide your details and one of our team will be in touch.

First Name*
Last Name*
Job Title*
Company*
Comments

By submitting this form, you agree to Tungsten Automation terms of use and privacy policy.*