From 1 July 2025, Malaysia will expand the scope of its Sales and Service Tax (SST) as part of a broader fiscal reform agenda to reduce its fiscal deficit to 3.8% of GDP. Key amendments include the imposition of an 8% service tax on financial services and a 6% service tax on construction services. Exemptions have been confirmed for capital markets, foreign exchange, and residential construction projects.
These changes come amid a wider tax policy shift targeting premium goods and non-essential services. Notably, imported seafood such as salmon, luxury fruits, truffles, and even high-end bicycles will be subject to higher sales tax rates, some as high as 10%.
For private and corporate clients with operations in Malaysia, or those considering market entry, this tax restructuring demands attention. The transitional rules and phased implementation, especially in financial services, present both challenges and opportunities.
At Alpadis, we understand the complexities that multinational businesses face amid regulatory shifts. Our Malaysia team stands ready to assist clients in navigating compliance, especially those in construction, finance, private education, and healthcare, sectors directly affected by the new tax obligations.
In line with our broader expertise in corporate services, wealth structuring, and market expansion across Asia, we provide tailored support to ensure that clients remain compliant while optimising their operational structures.
Key Takeaways:
As Malaysia strengthens its fiscal foundations, businesses and investors must adapt strategically. For tailored guidance on regulatory and tax developments in Malaysia and across Asia, contact Alpadis.
