Service Tax Increase:
The Government plans to raise the Service Tax to 8% from 6% starting 1 March 2024.
Expansion of Service Tax Scope:
Alongside the Service Tax increase, there's a proposal to expand the scope of taxable persons and services. This expansion seeks to ensure a more comprehensive coverage of taxable activities.
Sales Tax on Low-Value Goods (LVG):
Initially proposed to begin in January 2023, the implementation of sales tax on LVG was postponed to April 1, 2023. However, the implementation date was further deferred to a later date.
On 3 November 2023, the Royal Malaysian Customs Department (RMCD) announced that the sales tax on LVG will commence on 1 January 2024. The RMCD has also released guidelines and frequently asked questions (FAQs) on the implementation, available on their website.
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