Market Insights: Made Bitesize Service Tax Rate (SST)

Heads up! From March 2024, the service tax rate (SST) will increase from 6% to 8% on all taxable services. However, this excludes F&B, telecommunication services, vehicle parking space services and logistic services. What else is new? Let’s find out! On Nov 2, 2023, Malaysia also announced the High-Value Goods Tax (HVGT), effective May 1, 2024. What's taxed? Noteworthy thresholds include MYR200,000 for automobiles, MYR20,000 for watches and MYR10,000 for jewellery. The scope on the SST increase expands too! New additions include: Karaoke Centres Delivery Services (excluding food and beverages) Brokerage Underwriting for Non-Financial Services Logistics The threshold value of taxable service for mandatory registration is also set at RM500,000. What shifts can your business expect? With the SST rate climbing, businesses may need to revisit pricing strategies. Assess the impact of SST increase on your costs – pinpoint areas where expenses have risen! Why stress? PYT is here to help you make strategic adjustments and stay ahead in the game! Discover how we can streamline your accounting processes. Contact us today!