By DayakDaily Team
KUCHING, Feb 27: The service tax announced in Budget 2024, which includes logistics and digital services, has been gazetted.
According to a news report published today by The Star, the current 6 per cent tax rate will be increased to 8 per cent under the Service Tax (Rate of Tax) Amendment Order signed by Finance Minister II Datuk Seri Amir Hamzah Azizan.
In terms of logistics services, a separate gazette stated that the total value of taxable service is RM500,000.
The news report also stated that goods, including courier services for documents, packages, or goods originating outside of Malaysia and travelling to a location outside the country, with the last point of exit within Malaysia to a location outside Malaysia, are exempt from the tax.
Similarly, goods arriving at Malaysian ports or airports for transfer or unloading from one aircraft or vessel to another before being transported out of the country will be exempted.
The service tax will also apply to karaoke centres, repair and maintenance services, and brokerage and underwriting services, with the exception of medical insurance or medical takaful borne by an individual, life insurance policies or family takaful certificates, and matters related to goods, land, or any other matters outside Malaysia.
Additionally, another gazette introduced the Service Tax (Rate of Digital Services Tax) (Amendment) Order 2024, which will be enforced starting March 1, 2024.
“Any digital service provided before the date of coming into operation of this Order and the provision of the digital service spanning after the date of coming into operation of this Order, the service tax shall be charged at the rate of 8 per cent of the value of the digital service charged by a foreign registered person on the proportion of the digital service which is attributed to the part of the period after the date of coming into operation of this order.
“Any digital service provided on or after the date of coming into operation of this Order, any payment received before the date of coming into operation of this Order in relation to the digital service, the service tax on the payment received shall be charged at the rate of 6 per cent of the value of the digital service charged by a foreign registered person,” as stated in the gazette. — DayakDaily
