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Malaysia: 6% service tax rate for rental or leasing services

Effective January 1, 2026

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March 17, 2026

The Service Tax (Rate of Tax) (Amendment) Order 2026 provides that rental or leasing services are subject to a 6% service tax rate effective January 1, 2026.

The procedures for issuing invoices and reporting requirements in the SST-02 Returns for the previous 2% service tax exemption on rental or leasing services (as provided in the Notice dated January 27, 2026 issued by the Royal Malaysian Customs Department) thus will no longer be required.

Read a March 2026 report prepared by the KPMG member firm in Malaysia

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