Question 1

What are the key changes in Malaysia’s SST 2025 framework?

Accepted Answer

From 1 July 2025, Service Tax is expanded (rental/leasing, construction, prescribed fee-based financial services, private healthcare, limited private education), and Sales Tax coverage/rates are revised for selected non-essential goods.

Question 2

Who must register for SST under the new rules?

Accepted Answer

Businesses supplying taxable goods or services must register if their turnover exceeds the relevant threshold, which is typically RM500,000. However, the threshold varies by sector; for instance, it is RM1.5 million for construction, while some educational services have no threshold, requiring businesses to confirm the specific rule for their category.

Question 3

What is the grace period for compliance under SST 2025?

Accepted Answer

A penalty-free grace period applies until 31 December 2025, during which businesses taking reasonable steps to comply are not prosecuted for late registration or minor errors.

Question 4

How will SST 2025 affect imported low-value goods?

Accepted Answer

The sales tax pool will extend to more imported goods (such as some fruits, premium seafood, luxury items) with new rates and widened classification under HS codes.

Question 5

What systems and processes must businesses adapt for SST compliance?

Accepted Answer

Update tax codes and ERP/invoicing, train teams on registration, classification (HS/service groups), invoicing, and retain audit-ready records. Follow RMCD’s transition guides

Question 6

How does the SST 2025 framework impact SMEs?

Accepted Answer

While the tax base is expanded, the government introduced higher thresholds and relief for SMEs in certain categories to moderate their impact.

Business Guides in Malaysia

Malaysia New SST 2025: Full Guide to the New Framework and Compliance Rules

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