All You Need to Know about SST Malaysia

What is SST Rate in Malaysia?

Following are the SST Malaysia rates applicable to different goods and services

Rate Type Which goods or services
10% Standard The goods are charged with SST throughout the process or chain of B2B. This kind of tax isn’t deductible by the taxpayer.
6% Standard The sales and service tax is also applicable on the services. It is only due when the services are offered to the non-tax registered final consumer. These services include hotels and accommodation, restaurants, car repair & rental services, insurance, domestic flights, credit cards, business consulting, legal/accounting services, telecoms, electricity.
5% Reduced SST Malaysia rates are less for goods like petroleum oils, construction materials, telecommunications, foodstuffs, IT, and printing materials and hardware.

Who Pays SST in Malaysia?

The local or international businesses performing their activities in Malaysia are bound to pay SST if they exceed a specific annual income threshold. At present, this threshold is set at a figure of RM500,000.

Businesses already registered with the GST don’t need to register again for the sales and services tax. This is so, as their data will be transferred to create the SST Malaysia registration. The overall process of registration is simple as it is an online procedure.

If you are confused about how and where these tax rules will be applied, don’t worry! We, as a top audit firm in Kuala Lumpur, can provide you best taxation advisory services for GST and SST in Malaysia.

What does SST stand for?

SST is an abbreviated term for “Sales and Services Tax”, which is a new tax collection system introduced in Malaysia. It’s a single-stage tax that is levied on all types of taxable goods being manufactured and sold within the country.

If the products or goods are taxable, SST is levied on them irrespective of the fact that whether Malaysian registered manufacturer has manufactured these goods or they have been imported.

However, there are various products or goods, exempted from sales, and service tax. These goods are listed in the “Sales Tax Exemption Order”.

 

 

 

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