Malaysia MOF Announces Proposed Expansion of Service Tax Exemptions for Logistics Service Providers

The Malaysian Ministry of Finance March 11 announced its intent to expand service tax exemptions for logistics service providers, in light of the implementation March 1 of the 6 percent service tax rate on logistics and certain food and beverage services under Budget 2024. The MOF intends to expand service tax exemptions to include: 1) logistics services for directly exported goods, trans-shipment activities, and transit activities; 2) door-to-door logistics services; and 3) food and beverage delivery services made via e-commerce. Additionally, it intends to expand the business-to-business (B2B) logistics service tax exemption to cover components of exempt logistics services, to ...