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A business in Malaysia must register for service tax once its taxable services exceed the applicable threshold in any rolling 12-month period: RM500,000 for most services, RM1 million for rental/leasing and financial services, and RM1.5 million for construction, private healthcare and food & beverage. Manufacturers of taxable goods must register for sales tax at RM500,000

Since 1 July 2025, private healthcare services provided to non-Malaysian citizens have been subject to 6% service tax, and private education services attract 6% service tax where fees exceed RM60,000 per student per academic year — with tertiary institutions and language centres taxable on services to non-citizen students regardless of fee level. Malaysian citizens are

Construction works services in Malaysia have been subject to service tax at 8% since 1 July 2025. Contractors must register once their annual taxable construction turnover exceeds RM1.5 million. The most important relief — the exemption for services under non-reviewable contracts signed before 9 June 2025 and stamped before 31 December 2025 — has been

Rental and leasing services in Malaysia are subject to service tax at 6%, effective 1 January 2026. The tax applies to commercial rental and leasing of tangible assets — including commercial premises, machinery and equipment — provided by businesses whose taxable rental turnover exceeds RM1 million in a 12-month period. Residential property rental remains outside

The Sales and Service Tax (SST) is Malaysia’s principal indirect tax, imposed as a single-stage tax under the Sales Tax Act 2018 and the Service Tax Act 2018 and administered by the Royal Malaysian Customs Department (RMCD). In 2026, sales tax applies at 5% or 10% on taxable goods, while service tax applies at 6%