Important links
The Royal Malaysian Customs Department (“RMCD”) has issued Service Tax Policy 3/2026 – Service Tax Treatment on Maintenance Charges and Sinking Fund for Non-Residential Premises/ Buildings Charged by Joint Management Bodies (“JMB”) or Management Corporations (“MC”) dated 24 June 2026, which will take effect on 1 July 2026.
Outlined below are the salient points:
- The Minister of Finance has stipulated that maintenance or repair services, including maintenance management services related to premises/ buildings for non-residential use provided by any JMB or MC are non-taxable services.
- It follows that the maintenance charges and sinking fund contributions for both residential and non-residential buildings charged by JMB or MC to property owners are not subject to Service Tax.
- Pending the gazettement in the Service Tax Regulations 2018, the above would be in the form of a ministerial exemption effective 1 July 2026. It is important to note that it does not apply to periods before 1 July 2026 and any Service Tax payable up to 30 June 2026 shall be remitted to the RMCD.
- JMB or MC must pay Service Tax on taxable services procured from third parties, even if it is funded via the maintenance or sinking fund.
Please click on the above header link for a copy of the Service Tax Policy 3/2026.
Sales Tax Policy 1/2026 (Amendment No 1) – Sales Tax Exemption on Raw Materials for the Manufacture of Animal Feed, Fertilisers or Pesticides |
The RMCD has also issued an amended Sales Tax Policy 1/2026 – Sales Tax Exemption on Raw Materials for the Manufacture of Animal Feed, Fertilisers or Pesticides dated 22 June 2026.
In the amended Sales Tax Policy, the following has been updated:
- Any manufacturer importing or purchasing raw materials for the manufacture of animal feed, fertilisers, or pesticides as specified in the appendices is eligible for a Sales Tax exemption upon submission of the following documents:
(i) prior to 18th May 2026, a manufacturing certificate/ license issued by the Department of Veterinary Services, the Pesticides and Fertilisers Control Division of the Department of Agriculture or the Ministry of Domestic Trade and Cost of Living ("KPDN"); or
(ii) effective 18th May 2026, a Manufacturing License ("ML") or a Confirmation Letter for Exemption from Manufacturing License issued by the Malaysian Investment Development Authority ("MIDA")
- The refund application (using JKDM No. 2 Form to be submitted to the Cawangan Perakaunan Hasil, Bahagian Perkhidmatan Teknik, JKDM) has also been extended to no later than 31st October 2026. No extensions of time will be granted after this date.
Please click on the above header link for a copy of the Sales Tax Policy 1/2026 (Amendment No 1).
Petaling Jaya Office
Soh Lian Seng
Partner - Head of Tax and Tax Dispute Resolution
lsoh@kpmg.com.my
+ 603 7721 7019
Tai Lai Kok
Partner – Head of International & Domestic Tax Advisory
ltai1@kpmg.com.my
+ 603 7721 7020
Bob Kee
Partner - Head of Transfer Pricing
bkee@kpmg.com.my
+ 603 7721 7029
Neoh Beng Guan
Partner – Head of Corporate Tax
bneoh@kpmg.com.my
+ 603 7721 7025
Long Yen Ping
Partner - Head of Global Mobility Services
yenpinglong@kpmg.com.my
+ 603 7721 7018
Ng Sue Lynn
Partner - Head of Indirect Tax
suelynnng@kpmg.com.my
+ 603 7721 7271
Chang Mei Seen
Partner – Head of Investment & Tax Incentives
meiseenchang@kpmg.com.my
+ 603 7721 7028
Outstation Offices
Penang
Poh Sin Yue
Partner
sypoh@kpmg.com.my
+603 7721 7285
Johor
Ng Fie Lih
Partner
flng@kpmg.com.my
+603 7721 2514
Ipoh
Crystal Chuah Yoke Chin
Associate Director
ycchuah@kpmg.com.my
+603 7721 2714
Eastern Malaysia
Titus Tseu
Tax Advisor
titustseu@kpmg.com.my
+603 7721 2822
Chan Wing Hong
Executive Director
whchan@kpmg.com.my
+603 7721 7424
Caroline Chong
Director
carolinechong@kpmg.com.my
+603 7721 2818