Recently, there have been significant updates to Malaysia's service tax regulations, impacting a variety of industries. Below are the key changes that businesses and service providers should be aware of. 

1. Expansion of Group Relief to Include Maintenance and Repair Services 

A major change in the service tax landscape is the expansion of group relief, which now includes the provision of maintenance or repair services. Previously, group relief was only available for certain specific services, but now, businesses that provide maintenance or repair services may also benefit from this relief. 

2. Exclusion of Registered Practitioners in Traditional and Complementary Medicine from Service Tax 

Registered practitioners providing traditional and complementary medicine (TCM) services are excluded from being taxable persons for service tax purposes. These practitioners would no longer be required to charge service tax, thereby encouraging TCM services. 

3. Exclusion of Provision or Sale of Food by Golf Club and Golf Driving Range Operators from Service Tax 

Processed and packaged food products (like crackers, biscuits, and candies) sold by these operators will no longer be subject to service tax as of 27 November 2024. However, food and beverage preparation or catering services provided by golf clubs or driving range operators will remain taxable at 6%. 

4. Exclusion of Maintenance or Repair Services for Goods and Equipment in Residential Houses from Service Tax 

Another important update is the exclusion of maintenance or repair services for goods and equipment fixed to the structure of a residential house from being taxable services for service tax. The maintenance or repair services must be provided directly to the owner or occupant of the residential house. 

Conclusion 

These updates to Malaysia’s service tax regulations reflect a continued effort to refine the scope of taxable services, reduce the tax burden on businesses and individuals, and provide targeted relief to certain sectors to support economic growth and industry development.