Malaysia MOF Issues Notice Announcing Updated Policy on Sales, Service Tax

The Malaysian Ministry of Finance Jan. 5 issued a notice announcing an updated policy on the sales tax and service tax. The notice includes measures to: 1) reduce to 6 percent, from 8 percent, the service tax rate on rental or leasing services, effective Jan. 1; 2) increase to 1.5 million Malaysian ringgits (US$369,640), from 1 million ringgits (US$246,426), the annual sales limit for micro, small, and medium-sized enterprises (MSME) exempt from paying service tax on rental or leasing services, from Jan. 1; 3) provide a service tax exemption on rental or leasing services for one year from the registration ...