PETALING JAYA: Companies not currently registered under the Sales and Service Tax (SST) but provide one of the newly taxable services would need to establish if they had reached the revenue threshold within 12 months, says the Finance Ministry.
For companies not currently registered under SST but providing one of the newly taxable services, such as rental, in July 2025, they would need to first establish whether they have reached the revenue threshold of RM500,000 for rental within twelve months.
"If they have reached the revenue threshold in July, then the company will need to register by the month of August and only begin to charge service tax on their services beginning Sept 1, 2025, which is more than two months from now," the ministry said in a statement on Wednesday (June 11).
The statement was in response to concerns that there had been insufficient time to implement the tax by July 1.
"In addition, appreciating the need to provide time for affected companies to understand how the SST revisions may apply to them, the government will provide a grace period until December 2025 and not impose penalties on companies that genuinely have made the effort to comply with the newly revised SST," it said.
