Overview in a few words
|Standard Rate||Reduced Rate||Other Rates|
- 1 How much is the SST in Malaysia?
- 2 When should I charge SST Malaysia?
- 3 What is sales and service tax Malaysia?
- 4 Who has to pay SST in Malaysia?
- 5 Who is eligible for SST?
- 6 How can I check my SST Number Malaysia?
- 7 Is salary subject to SST?
- 8 How do I make a payment to SST?
- 9 Which one is better GST or SST?
- 10 Is SST indirect tax?
- 11 Is service charge subject to SST Malaysia?
- 12 Is rental income subject to SST in Malaysia?
- 13 What is SST payment?
- 14 Who is exempted from SST Malaysia?
- 15 What is subject to SST Malaysia?
How much is the SST in Malaysia?
It was announced on September 1st, 2018, that the Sales and Services Tax (SST) will be reinstated to replace the controversial Goods and Services Tax (GST) system (GST). Goods are subject to a 5 to 10% sales tax, while services are subject to a 6 percent service tax under the new SST.
When should I charge SST Malaysia?
The payment of the SST must be made within 30 days after the end of the taxable period in question. Sales Tax and Services Tax have separate accounting periods in which to account for their respective transactions: It is the point at which the taxable products are sold, disposed of, or first utilized by the taxable person that the sales tax is due.
What is sales and service tax Malaysia?
Two components of the SST are charged and levied: a service tax on taxable services provided by any taxable person in Malaysia in the course and furtherance of business, and a single stage sales tax levied on imported and locally manufactured goods, either at the time of importation or at the time of sale, respectively.
Who has to pay SST in Malaysia?
Who is responsible for paying SST (Sales and Service Tax) in Malaysia? Businesses that conduct their operations in Malaysia and worldwide will be required to pay SST if their yearly revenue exceeds a certain threshold. The current barrier is set at RM500,000, which is a significant sum of money.
Who is eligible for SST?
Generally, if the yearly value of taxable services provided by a business or service provider is within the scope of the Service Tax Act 2018, the business or service provider must register with the SST. The SST threshold for restaurants, cafés, canteens, bars, and any other establishment that provides its clients with anything to drink or eat is RM1,500,000 for businesses registered under the SST Act.
How can I check my SST Number Malaysia?
How to Check the Status of a Company’s SST Registration Status in Malaysia
- Step 1: Go to https://www.mysst.customs.gov.my/ and choose “Registration Status” from the drop-down menu: Step 2: Choose one of the options from the list: Step 3: Enter the following information about your company:
Is salary subject to SST?
A: Secondment of personnel does not fall under the definition of taxable service. So the recovery of a salary or remuneration does not trigger the application of service tax in this case.
How do I make a payment to SST?
A: There are two (2) methods for making the SST payment, which are as follows: The payment can be made either electronically using the MySST system (Financial Process Exchange (FPX)) or manually by cheque or bank draft (see below). It is not possible to pay with cash.
Which one is better GST or SST?
GST claim back on tax has proven challenging for firms, and it has been rejected in certain cases. It also needs a minimum of RM500,000 in yearly sales before it can be claimed. While the SST is expected to result in a tax revenue decrease of RM25 billion for the government, it is viewed as a less progressive form of taxation, and several nations have switched to the GST.
Is SST indirect tax?
Sales tax and service tax are both final taxes, with no provision for a credit system. Despite the fact that there are exclusions, SST is mostly a corporate expense.
Is service charge subject to SST Malaysia?
Service tax, often known as government tax, is a statutorily mandated tax at a rate of 6 percent (effective as of January 2011) levied under the Service Tax Act 1975. Service taxes received by businesses are paid to the government on a bimonthly basis by the businesses. Service tax is not levied on the service fee itself, but rather on the cost of the products or services that are given instead.
Is rental income subject to SST in Malaysia?
In most cases, the services are provided as a package (for example, the renting of a facility, the provision of food and beverages, and the provision of facilities to be utilized) and are subject to service tax.
What is SST payment?
It is now simple to pay the Malaysian sales and services tax (SST), especially when you avoid the burden of having to go to the Customs in person to make your payment. The due date for SST payment is the last day of the month after the taxable period, which indicates that the taxable period was two (2) months before to the due date of SST payment.
Who is exempted from SST Malaysia?
Within a 12-month period, any person who does subcontract work in the manufacture of taxable items and whose total costs for work completed exceeds the stipulated threshold of RM500,000 is subject to prosecution. Orders are excluded from registration regardless of the total amount of taxable products sold throughout the course of the order.
What is subject to SST Malaysia?
Sales and service tax (sometimes known as SST) is a combination of sales tax and service tax. Sales tax is a one-time tax charged on all taxable items created and sold, consumed, or disposed of by a registered manufacturer in Malaysia or imported into Malaysia, regardless of where the goods were manufactured. The goods mentioned in the Sales Tax Exemption Order are exempt from being subject to the state’s sales tax.