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Overview of Sales & Service Tax (SST)

Under the Malaysian Service Tax Act 2018 and Sales Tax Act 2018, any registered business providing taxable services or manufacturing taxable goods with an annual turnover exceeding RM500,000 (or RM1,500,000 for F&B operators) must register with the Royal Malaysian Customs Department (JKDM) via the MySST portal.

Filing Cycles and SST-02 Form

• Bi-Monthly Taxable Period: SST returns must be submitted every two months. The SST-02 return and payment are due no later than the last day of the month following the end of each taxable period.
• Service Tax Rates: Standard service tax is 8% (expanded in 2024), while essential services such as F&B, telecommunications, and logistics parking remain at 6%.
• Late Payment Penalties: Late payment incurs a compound penalty under Section 26: 10% for the first 30-day delay, an additional 15% for the second 30 days, and up to a maximum statutory cap of 40%.

Best Practices for Record-Keeping

SST-registered companies are legally obligated to retain all tax invoices, credit notes, and reconciliation ledgers for a minimum of 7 years in Malaysia.