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SST Update for Rental or Leasing Services
The Ministry of Finance (MOF) Malaysia announced an update to the Sales Tax and Service Tax (SST) policy on 5 January 2026. Effective 1 January 2026, the following changes apply to rental and leasing services:
- The Service Tax rate has been reduced from 8% to 6%.
- The annual sales threshold for PMKS exemption has been increased from RM1 million to RM1.5 million.
PMKS refers to Perusahaan Mikro, Kecil dan Sederhana, also known as MSMEs (Micro, Small, and Medium Enterprises). Eligible businesses are required to register and declare their MSME status through the RMCD MyPMK system at: https://mypmk.customs.gov.my/index.php?mpages=pendaftaran - Newly registered PMKS / MSMEs are eligible for a 1-year Service Tax exemption from the date of business registration, subject to registration and MSME status declaration through the RMCD MyPMK system.
For tax exemption applications, please contact billing@ipserverone.com.
Source: Pemakluman Dasar Dikemaskini Berhubung Cukai Jualan Dan Cukai Perkhidmatan
Note: This summary is based on information available as of 10 March 2026.