Malaysia | Reinstatement of Sales and Services Tax from September 2018

Malaysia will reintroduce a Sales and Services Tax (SST) effective from 1st September 2018, announced Finance Minister, Lim Guan Eng, at the 16th July, National Tax Conference in Kuala Lumpur.

The draft law expected to be enacted in August, provides for a tax rate of 10% applicable to sales (goods) and a tax rate of 6% applicable to services.

This initiative to substitute the current GST system (in place since 2015) with the SST, was originally pledged as part of the Malaysian incoming government’s election manifesto with which it swept into power in May.

On 1st June 2018, the standard GST rate was reduced to 0% from 6%.