What Is The SST Rate in Malaysia?

Sales and Service Tax (SST) in Malaysia is an important element of the country tax system that will be implemented instead of the Goods and Services Tax (GST) in September 2018. This dual system is broken down to Sales Tax- levied on production and importation of taxable goods and Service Tax- levied on certain prescribed services in Malaysia.

This article is an extensive and detailed guide on the existing rates of SST in Malaysia, including thresholds, industry segments and the recent percentages that apply.

Overview of SST in Malaysia

Sales Tax in Malaysia is normally 5 or 10 percent or a certain percentage based on the kind of goods. In the meantime, the Service Tax is levied at 6 or 8 percent, according to the industry. Some services are charged as a flat rate, exemptions or some special conditions.

In order to make businesses, professionals, and individuals aware of their tax liabilities, Malaysia groups services and has thresholds and SST rates.

Table of SST Rates and Thresholds in Malaysia

Below is the official breakdown of service providers, thresholds, and applicable SST rates:

Group	Service Provider	Threshold	SST Rate
A	Accommodation	RM500,000.00	8%
B	Food & Beverages	RM1,500,000.00	6%
C	Night Clubs	RM500,000.00	8%
	Dance Halls		8%
	Health Centers		8%
	Massage Parlours		8%
	Public Houses		8%
	Beer House		8%
	Karaoke Centre		8%
	Beauty Treatment	Exempted	Exempted
D	Private Clubs	RM500,000.00	8%
E	Gold Club & Golf Driving Range	RM500,000.00	8%
F	Betting & Gaming	RM500,000.00	8%
G	Advocate & Solicitor, Sharie Lawyer	RM500,000.00	8%
	Public Accountant		8%
	Estate Agents		8%
	Professional Engineer		8%
	Architect		8%
	Consultant		8%
	Management		8%
	Employment Agency		8%
	Private Agency		8%
	IT Providers		8%
	Online Platform		8%
	Maintenance & repair		8%
H	Credit Card/ Charge Card	RM 25 Flat Charges	RM 25 Flat Charges
I	Insurance & Takaful	RM500,000.00	8%
	Telecommunication		6%
	Parking Spaces Operator		6%
	Automotive Repair Centre		8%
	Advertising		8%
	Electricity		8%
	Air Transport		8%
	Cleaning		8%
	Healthcare Services (For Non-Malaysians)	RM1,500,000.00	6%
	Traditional and Complementary Medicine Services (For Non- Malaysians)	RM1,500,000.00	6%
	Allied Health Services (For Non-Malaysians)	RM1,500,000.00	6%
J	Logistic	RM500,000.00	6%
	Courier		6%
	E-Commerce Logistic		8%
	Digital Services		8%
K	Rental or Leasing	RM1,000,000.00	8%
L	Construction Works	RM1,500,000.00	6%
M	Private Education (Non- Malaysians)	Yearly Tuition Fee > RM60,000.00	6%

Government Support for Businesses (Especially SMEs)

Recognizing the impact of SST expansion, the government introduced relief measures to support compliance and ease the transition:

Grace Period: No penalties or prosecution for non-compliance until 31 December 2025.
Turnover Thresholds: Designed to protect small businesses, ensuring only larger providers are subject to SST.
Exemptions: For B2B and intra-group services, reducing the risk of double taxation.
12-Month Exemption: For non-reviewable contracts, giving businesses time to adapt.
Daily Essentials: Remain tax-free, protecting consumers from additional living costs.

These measures strike a balance between broadening the tax base and safeguarding small businesses.

Exemptions and Special Cases

Not every sector is affected by SST.

Beauty treatments remain exempt.
Small businesses below thresholds do not need to register.
Healthcare and education services are only taxed when offered to non-Malaysians.

The effects of SST on Companies and customers.

Companies should be keen on monitoring their revenue to find out whether or not they hit the compulsory registration limits.
The tax is often transferred to the consumer in that the businesses incorporate the SST in their pricing.
Malaysian multinational companies that provide online platforms or other digital services must also comply.

For businesses, staying compliant is essential. If you’re unsure whether your company needs to register, you can get professional advice at HL Khoo Group – Tax Advisory Services.

For official SST guidelines, visit the Royal Malaysian Customs Department (RMCD) – MySST Portal.

FAQ

The service tax is mainly 6%, but some industries (e.g., entertainment, professional services) are taxed at 8%. Sales Tax applies at 5% or 10%.

Businesses exceeding their industry-specific threshold must register (e.g., RM500,000 for professional services, RM1.5 million for F&B).

Yes. If turnover is below the threshold, businesses are exempt from registration.

The Goods and Services Tax (GST) was a 6% broad-based tax applied to almost all goods and services, with input tax credits for businesses. It was abolished in 2018.

The Sales and Service Tax (SST), fully in use in 2025, is narrower:
• Sales Tax: 5% or 10% on manufacturers/importers
• Service Tax: 6% or 8% on selected services
• No input tax credit
• Daily essentials remain exempt

✅ Malaysia now fully uses SST. GST is no longer in place.

Yes. Digital services and e-commerce logistics are subject to 8% SST, even if provided by foreign companies.

Tingnan ang detalye ng What Is The SST Rate in Malaysia? sa Opisyal na Website Know more about this service. More Details

HL Khoo Group Philippines

Makipag-ugnayan sa amin

Philippines