Quick answer
From 1 July 2025 Malaysia's service tax expanded to rental and leasing, construction, financial services, private healthcare, education and beauty services. Registration thresholds depend on the service: RM500,000 over 12 months for most taxable services, RM1 million for rental, leasing and financial services, and RM1.5 million for construction and private healthcare. Rental and leasing is taxed at 8%; construction and certain other services at 6%. We assess your threshold and register you with the Royal Malaysian Customs Department (JKDM).
Last reviewed： · Reviewed by：ONEKEY BIZ compliance team
01
Overview
Service tax applies to specific taxable services once a business's taxable turnover crosses the registration threshold. On 1 July 2025 the scope widened substantially, bringing rental and leasing, construction work, financial services, private healthcare, education and beauty services into the net.
Thresholds now depend on the service. Most taxable services register at RM500,000 of taxable turnover over 12 months; rental and leasing and financial services at RM1 million; construction and private healthcare at RM1.5 million. Rates also differ: rental and leasing is taxed at 8%, while construction and some other services are taxed at 6%, and residential property and certain categories are exempt.
The most common mistake is registering late. A business becomes liable once it crosses the threshold, not when it notices — and tax not charged to customers still has to be paid. We test your turnover by service type and register you in time.
Who needs this
- Contractors approaching the RM1.5 million construction threshold
- Landlords and leasing businesses above RM1 million
- Service businesses above RM500,000 in taxable services
- Businesses unsure whether the July 2025 expansion covers them
02
Documents you need to prepare
Business
- SSM registration and company profile
- Business activities and service types
Turnover
- Monthly taxable turnover for the past 12 months
- Projected turnover for the next 12 months
Contacts
- Director's IC and contact person
- Liability starts when the threshold is crossed — do not wait for the year end.
- After registration, SST returns must be filed for each taxable period.
03
How to get it done with ONEKEY BIZ
- 1Threshold test Day 1–2
Turnover assessed by service category.
- 2Registration file Day 2–3
Business and turnover details prepared.
- 3Submit to JKDM Day 3–5
Registration application submitted.
- 4Registration approved Per JKDM
SST registration number issued.
- 5Compliance setup Done
Invoicing and return periods explained.
You do
- Provide turnover by service type
- Confirm business activities
We do
- Test your threshold and scope
- Prepare and submit registration
- Explain invoicing and return obligations
04
What you receive
Registration number from JKDM.
Which services are taxable and at what rate.
Taxable periods and filing dates.
Official sources
Frequently asked questions
Does residential rental attract service tax?
Residential property is among the exemptions under the expanded scope.
We are a contractor — when must we register?
When taxable construction turnover exceeds RM1.5 million over 12 months.
What happens after registration?
You charge service tax on taxable services and file SST returns each taxable period.