Royal Malaysian Custom Departments released the Service Tax guidance for repair & maintenance services in Malaysia, as of February 26, 2024.

Key points include:

1. Introduction of service tax on maintenance or repair services under the Service Tax Act 2018 from September 1, 2018.
2. Mandatory registration for providers exceeding a threshold, with a focus on maintenance or repair services.
3. Details on taxable and exempt services, including specific examples.
4. Clarification on the tax treatment of various maintenance and repair activities.
5. Guidelines for service providers on registration, tax imposition, and compliance requirements.
6. Maintenance management services related to residential land or buildings provided by developers, joint management bodies, management corporations, or residential associations are not subject to service tax.

As per Finance Ministry’s Treasury secretary-general Datuk Johan Mahmood Merican told a media that the implementation date of March 1, 2024 for the new service tax applies to existing registered companies that provide existing taxable services and new taxable services.

New registered persons that provide new taxable services will be given an additional grace period of one month, pushing the effective date to charge the service tax to April 1.

Read the full content in our hashtag#ktp blog
https://lnkd.in/gNziwjXy