Updates on Service Tax (SST) Implementation
Kuala Lumpur, 29 August 2025
Following the latest updates from the Association of Banks in Malaysia (“ABM”) and Association of Islamic Banking and Financial Institutions Malaysia (“AIBIM”) on August 29, 2025, Royal Malaysia Custom Department of Malaysia (“RMCD”) has confirmed that Phase 2 services, which were originally scheduled to be subject to SST starting September 1, 2025, will now be deferred until further notice as per the existing service tax exemptions granted under Service Tax Policy 1/2025.
Phase |
Previous effective date |
Updated effective date |
Services subject to 8% SST |
|---|---|---|---|
1 |
1 July 2025 |
1 July 2025 |
Specific fees and commissions listed in the Appendix A of the Service Tax Policy 1/2025. |
2 |
1 September 2025 |
To be deferred until further notice |
Remaining fees or commissions for financial services not covered in Phase 1. |
We are currently awaiting further announcements and guidelines to be released by the Ministry of Finance or RMCD. Please look out for further updates from HLB regarding the SST implementation.
For more information, please refer to the FAQ here.
Thank you.