The Royal Malaysian Customs Department (“RMCD”) has issued the updated Guide on Professional Services as at 21 September 2021.  Please click on the above header link for a copy of the Guide at the MySST portal.

One notable update is the Service Tax treatment on office holders/ directors’ fees, as follows:


Type of Payment

Subject to Service Tax

Not Subject to Service Tax


Directors’ remuneration/ fee




Directors’ allowances

e.g. Meeting allowance, monthly allowance, Senior Independent Director (SID) allowances and other allowances, etc.


(Previously* not subject to Service Tax)




Benefit-in-kind (BIK)


√ (Note 1)

(Previously* not subject to Service Tax)

√ (Note 2)




(Previously* not subject to Service Tax)



Disbursement (Note 3)



* Based on previous Guide on Professional Services as at 6 October 2020


Note 1: Where the BIK is paid to the director as part of the remuneration package/ perquisite/ incentive for the directors

Note 2: Where the BIK is paid by the company directly to the service providers who provided the services to the director

Note 3: Refer to the Service Tax Guide on Disbursement and Reimbursement for the definition of disbursement

Based on the above, companies and their directors may wish to revisit the types of payment made/ received, and assess whether changes to the Service Tax treatment adopted are necessary.  If yes, the basis and timing of change should also be documented properly. 

Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.

Should you have any questions or require further clarification, please do not hesitate to email or contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organization.

Ng Sue Lynn

Executive Director
- Indirect Tax Practice

Dato’ Tan Sim Kiat

- Indirect Tax Practice

Yap Choon Ling

- Indirect Tax Practice

Petaling Jaya Office

Tai Lai Kok
Executive Director -
Head of Tax and Head of Corporate Tax
+ 603 7721 7020

Long Yen Ping
Executive Director -
Head of Global Mobility Services
+ 603 7721 7018

Bob Kee
Executive Director -
Head of Transfer Pricing
+ 603 7721 7029

Ng Sue Lynn
Executive Director -
Head of Indirect Tax
+ 603 7721 7271

Soh Lian Seng
Executive Director -
Head of Tax Dispute Resolution
+ 603 7721 7019


Outstation Offices

Penang Office

Kuching & Miri Office

Evelyn Lee
Executive Director -
Penang Tax
+604 238 2288 (ext. 312)

Regina Lau
Executive Director -
Kuching & Miri Tax
+6082 268 308 (ext. 2188)

Kota Kinabalu Office

Johor Bahru Office

Titus Tseu
Executive Director -
Kota Kinabalu Tax
+6088 363 020 (ext. 2822)

Ng Fie Lih
Executive Director -
Johor Bahru Tax
+607 266 2213 (ext. 2514)

Ipoh Office


Crystal Chuah Yoke Chin
Tax Manager -
Ipoh Tax
+605 253 1188 (ext. 320)