Topic: SST | Service Tax
Malaysia service tax is charged on prescribed taxable services supplied in Malaysia by a registered or registrable taxable person in the course of business. The general rate is 8%, while specified service categories remain at 6%. Registration thresholds vary by service category.
This guide gives businesses a practical overview of the current rates, registration test, invoicing, SST-02 returns and payment. Detailed construction, rental and leasing rules are covered in separate HTL guides.
Malaysia service tax rates in 2026
| Taxable service category | Current rate |
|---|---|
| General taxable services, unless a specific rate applies | 8% |
| Food and beverage | 6% |
| Telecommunications | 6% |
| Parking | 6% |
| Logistics | 6% |
| Rental or leasing | 6% from 1 January 2026 |
| Construction work | 6% |
| Private healthcare | 6% |
| Education | 6% |
| Financial services | 8% |
| Credit or charge card | RM25 for each principal or supplementary card and each subsequent year or part of a year |
The correct rate depends on the prescribed service, service period and any applicable transition rule. Rental and leasing changed from 8% to 6% effective 1 January 2026.
Who must register for service tax?
A business that provides a prescribed taxable service must test whether it exceeds the threshold for that category. Thresholds are not the same for every service. Examples include:
- Rental or leasing: RM500,000 in a 12-month period.
- Construction work services: RM1,500,000 in a 12-month period, excluding prescribed residential construction and related public facilities.
- Some services: a different threshold or no threshold may apply.
The test uses both a historical method and a future method. The historical method looks at the current month plus the preceding 11 months. The future method considers the current month plus the following 11 months based on expected taxable services.
Voluntary registration may be available below the threshold, subject to RMCD approval and conditions. Branch registration is allowed, but general group registration is not.
What must an SST invoice contain?
A registered service provider must issue an invoice in Bahasa Melayu or English with the prescribed particulars, whether in hard copy or electronic form. The invoice should clearly identify:
- the supplier and SST registration details;
- the customer and taxable service;
- invoice date and number;
- value of the taxable service;
- service tax rate and amount; and
- any exempt or non-taxable item stated separately.
Contracts, quotations and invoices should use consistent descriptions. Incorrect bundling or vague wording can cause the wrong service group or rate to be applied.
When are SST returns and payments due?
Registered persons generally submit the SST-02 return every two months according to their taxable period. The return is due no later than the last day of the following month after the taxable period ends, even where no tax is payable.
Service tax is generally accounted for on a payment basis unless the Director General approves an invoice basis. Payment can be made electronically through the available MySST facility or by the accepted methods stated by RMCD.
Late-payment penalties can increase in stages: 10% for the first 30 days, followed by 15% for the second 30 days and 15% for the third 30 days, up to 40% after 90 days.
Service tax compliance checklist
- List every service supplied and map it to the correct taxable-service group.
- Confirm the applicable rate, threshold and effective date.
- Apply both 12-month registration tests.
- Review contracts for bundled services, reimbursements and exemptions.
- Issue compliant invoices and reconcile collections to the accounting records.
- Submit SST-02 and payment by the statutory deadline, including nil returns.
- Retain agreements, invoices, returns and supporting records for seven years.
Separate guides for higher-risk SST areas
- Malaysia Construction Service Tax Guide 2026
- Malaysia Rental Service Tax Guide 2026
- Malaysia Leasing Service Tax Guide 2026
HTL can assist with SST registration and compliance, classification reviews, exemption documentation, invoicing and SST-02 return preparation.
Official references
- RMCD MySST background and current service tax rates
- RMCD Service Tax FAQ
- RMCD service tax registration and thresholds
- RMCD industry guides
This article provides general information and is not a substitute for advice based on a specific business or transaction.
Official website reviewed: 1 August 2026
HTL last updated: 1 August 2026
