Postponement of Implementation of Service Tax on Goods Delivery Services

It was proposed during the 2022 Budget announcement that the scope of Service Tax be expanded to include goods delivery services regardless of the status of the service providers (whether licensed or not), but exclude delivery services for food and beverages as well as logistic services. This proposal is to be effective 1 July 2022.

On 30 June 2022, the Royal Malaysian Customs Department (“RMCD”) announced the postponement of this proposal to a later date to be announced.  

This postponement provides a relief to business as this would allow more time to understand details of the proposed expansion and gather clarity to ensure that the implementation can be executed smoothly.  Having said that, businesses should keep a close eye on the development of this matter.

Please click on the above header link for the RMCD’s announcement at the RMCD’s official website (only available in Malay language).

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.

Petaling Jaya Office

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

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

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

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

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

Outstation Offices

Penang Office

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

Ipoh Office

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

Kuching & Miri Office

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

Kota Kinabalu Office

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

Johor Bahru Office

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