SST Malaysia: Complete Guide to Taxable Services
Groups A–M: Service providers, registration thresholds, and comprehensive SST guidance for Malaysian businesses
Understanding SST in Malaysia
Essential information about Malaysia's Sales and Service Tax system
Sales Tax
Manufacturers are required to register when sales value of taxable goods exceeds RM500,000 over 12 months. Includes sub-contract work on taxable goods.
Service Tax
Service providers must register based on specific thresholds for each service group. Tax rates: 8% (standard), 6% (F&B, Parking, Logistics, Telecommunications).
Credit Card Services
Specific rate of RM25 per principal/supplementary card issued annually. No minimum threshold applies.
Key SST Registration Requirements:
- Historical Method: Total value of taxable goods/services in current month plus 11 preceding months
- Future Method: Total value of taxable goods/services in current month plus 11 succeeding months
- MySST Portal: All registrations must be completed through the official MySST system
- Voluntary Registration: Available for businesses below threshold (subject to conditions)
Taxable Services Groups A–M
Complete breakdown of service providers, taxable services, and registration thresholds
Common Thresholds
- RM 500,000: Most service groups
- RM 1,000,000: Rental/Leasing, Financial Services
- RM 1,500,000: Food & Beverages, Construction, Private Healthcare
- No Threshold: Credit cards, Forwarding agents, Education (conditions apply)
Tax Rates (Effective March 1, 2024)
- 8%: Standard rate for most services
- 6%: F&B, Parking, Logistics, Telecommunications
- RM25: Per credit/charge card issued
Accommodation Services
Hotels, inns, service apartments, homestays
Service Code | Provider Type | Taxable Services | Threshold |
---|---|---|---|
9901.01.0650 | Hotels, inns, lodging houses, service apartments, homestays | All accommodation services including F&B, tobacco sales | RM 500,000 |
Food & Beverages
Restaurants, bars, catering, food courts
Service Code | Provider Type | Taxable Services | Threshold |
---|---|---|---|
9902.01.2651 | Restaurants, bars, caterers, food courts (excludes educational/religious canteens) | Food services, beverages, tobacco sales (eat-in & take-away) | RM 1,500,000 |
Note: Tax rate is 6% for F&B services (reduced from standard 8% rate).
Entertainment & Wellness
Night clubs, wellness centers, massage parlours, karaoke
Service Codes:
9903.01.0652 (Night clubs), 9903.01.0653 (Dance halls), 9903.01.0654 (Wellness centres), 9903.01.0655 (Massage parlours), 9903.01.0656 (Public houses), 9903.01.0657 (Beer houses), 9903.07.0691 (Karaoke centers)
Common Features:
All services including F&B, tobacco sales
Threshold: RM 500,000
Wellness Centre Definition (Expanded July 2025):
- Treatments: Body hydrotherapy, aromatherapy, acupuncture, reflexology, cupping
- Care Services: Postnatal mother and infant care, wellness care for elderly
- Beauty Services: Facial treatments, hair treatments, spa services, slimming treatments
- Note: Basic beauty services (manicure, pedicure, barber, hairdresser) are exempted based on MOF announcement June 27, 2025
Private Clubs
Code: 9904.01.1658
All services including F&B, tobacco sales
Threshold: RM 500,000
Golf Clubs & Ranges
Code: 9905.01.1659
All services including F&B, tobacco sales
Threshold: RM 500,000
Betting & Gaming
Code: 9906.01.1660
Gaming services, tournaments, casino operations
Threshold: RM 500,000
Professional & Related Services
Legal, accounting, consulting, IT, management services
Traditional Professional Services:
- 9907.01.0670: Advocates, solicitors, Syarie lawyers
- 9907.02.0669: Public Accountants
- 9907.03.0673: Surveyors, appraisers, estate agents
- 9907.04.0671: Professional Engineers
- 9907.05.0672: Architects
Modern Services:
- 9907.06.1674: Consultancy services
- 9907.07.1675: Management services
- 9907.08.1668: Employment agencies
- 9907.09.1667: Security/protection services
- 9907.10.1676: IT service providers
- 9907.12.1690: Online platforms
- 9907.13.1694: Maintenance & repair
Common Threshold: RM 500,000 | Important Exclusions: Services related to goods/land outside Malaysia, certain medical consultancy, R&D companies
Financial Services
Credit cards, insurance, digital finance, remittance
Credit Card Services:
- Code: 9908.01.0678
- Rate: RM25 per card per year
- Threshold: None (all providers subject)
- Exclusions: Fuel cards, closed community cards
New Financial Services (July 2025):
- Insurance: Individual insurance (except personal medical/life/family takaful)
- Digital Finance: E-wallets, fintech services
- Advisory: Financial consultancy, brokerage
- Remittance: Outward remittance charges to Malaysian customers
Important Details:
- Threshold: RM 1,000,000 (for new services)
- Tax Rate: 8% (standard rate)
- Effective: July 1, 2025 (some services Sept 1, 2025)
- B2B Exemptions: Available to prevent tax cascading
Utilities, Transport & Healthcare Services
Insurance, telecom, transport, advertising, private healthcare
Financial & Communication Services:
- Insurance & Takaful (9909.01.0661) - General B2B & B2C
- Telecommunications (9909.01.0662) - 6% tax rate
- Paid TV Broadcasting (9909.08.1679)
- Brokerage/Underwriting (9909.12.1683)
Transport & Other Services:
- Parking Operators (9909.04.1664) - 6% tax rate
- Automotive Repair (9909.05.1666)
- Hire & Drive (9909.07.1676)
- Advertising (9909.08.1677)
- Electricity (9909.09.1680) - excludes first 600kWh
- Air Transport (9909.10.1681) - domestic only
- Cleaning Services (9909.13.1684)
Private Healthcare Services (New - July 2025):
- Coverage: Private clinics, hospitals, traditional medicine (TCM, etc.), allied health services
- Tax Rate: 6% (lower rate for healthcare)
- Threshold: RM 1,500,000 annual revenue
- Important: Only applicable to non-Malaysian citizens
- Exemptions: Malaysian citizens, basic allied health services (physiotherapy, speech therapy)
Common Thresholds: RM 500,000 (standard), RM 1,500,000 (healthcare) | Special Rates: 6% for Telecommunications, Parking, and Healthcare
Logistics & Forwarding
Logistics, courier, e-commerce, customs clearing
Standard Threshold Services:
- Logistics (9910.02.0693) - 6% tax rate
- E-commerce Logistics (9910.02.0693) - 6% tax rate
- Courier Services (9909.06.1665) - parcels ≤30kg, domestic
Threshold: RM 500,000
No Threshold Services:
- Forwarding Agents (9909.03.0663)
- Customs clearance services
- All providers subject regardless of turnover
Note: International courier services have specific exclusions
Rental or Leasing Services
Commercial property, machinery, equipment, tangible assets
Taxable Services:
- Commercial Property: Office buildings, retail spaces, warehouses
- Machinery & Equipment: Industrial machinery, construction equipment
- Plants & Animals: Agricultural leasing arrangements
- Other Tangible Assets: Vehicles, furniture, IT equipment
Key Details:
- Threshold: RM 1,000,000 annual revenue
- Tax Rate: 8% (standard rate)
- Effective: July 1, 2025
- B2B Exemptions: Available for sublease arrangements
Important Exclusions:
- Housing Accommodation: Residential rentals are not subject to SST
- Financial Leases: Leasing through financial institutions excluded
- Reading Materials: Books, magazines, journals exempted
- Overseas Assets: Tangible assets located outside Malaysia
- MSME Exemption: Available for lessees with annual turnover < RM 1 million
Construction Services
Commercial construction, mixed developments, infrastructure
Taxable Construction:
- Commercial Buildings: Offices, shopping centers, factories
- Mixed Developments: Shop lots with serviced apartments
- Infrastructure: Roads, bridges, utilities (non-residential)
- Industrial Projects: Manufacturing facilities, warehouses
- Maintenance Services: During construction period
Key Features:
- Threshold: RM 1,500,000 annual revenue
- Tax Rate: 6% (reduced rate)
- Effective: July 1, 2025
- B2B Exemptions: Available to prevent cascading
- Contract Relief: 12-month exemption for existing contracts
Exemptions:
- Residential Buildings: Houses, apartments, condominiums for housing
- Public Facilities: Approved by local authorities solely as residential amenities (playgrounds, community halls)
- Materials Only: Supply of construction materials without services
Education Services
Private schools, international education, tuition centers
High-Fee Private Education:
- Private Preschools: Annual fees > RM 60,000 per student
- Private Primary Schools: Annual fees > RM 60,000 per student
- Private Secondary Schools: Annual fees > RM 60,000 per student
- International Schools: Fees exceeding threshold
- Tuition Centers: High-value programs
Higher Education (Non-Citizens):
- Private Universities: Services to non-Malaysian students
- Private Colleges: Programs for foreign students
- Language Centers: Courses for non-citizens
- Professional Courses: Certification programs
Key Features:
- Tax Rate: 6% (reduced rate for education)
- Threshold: RM 60,000 per student annually OR services to non-citizens
- Effective: July 1, 2025
- Citizen Exemption: Malaysian citizens with disabilities (OKU) exempted
- Target Impact: Primarily affects affluent segments
SST Registration Process
Step-by-step guide to registering for SST in Malaysia
Determine Eligibility
Calculate your 12-month turnover using historical or future method. Check if your services are listed in Groups A-J.
Prepare Documents
Gather business registration, financial records, and identify your specific service codes from the official groups.
MySST Registration
Submit application through MySST portal. Registration typically approved within 1-3 weeks for qualifying businesses.
Compliance Setup
Set up SST-compliant invoicing, prepare for regular filings, and ensure record keeping requirements are met.
Registration Timelines
- Mandatory Registration: Within 30 days of exceeding threshold
- Voluntary Registration: By application (subject to DG approval)
- Processing Time: Typically 1-3 weeks
- Branch Registration: Allowed for Service Tax
Exemptions Available
- Below Threshold: Businesses under the specified limits
- Non-taxable Services: Services not listed in Groups A-J
- Statutory Exemptions: Certain government-related services
- Geographic Exclusions: Services related to goods/land outside Malaysia
Need Help with SST Registration or Compliance?
Professional SST advisory services for Malaysian businesses. Get expert guidance on registration, compliance, and ongoing support.
Related Resources: SST for Construction · Malaysia E-Invoicing 2025–2026 · SST in Malaysia — Simple guide for businesses
Official Resources & Links
Disclaimer: The information provided on this website is intended for general informational purposes only and does not constitute professional, legal, tax, or financial advice. While every effort has been made to ensure the accuracy and reliability of the content at the time of publication, regulations, policies, and requirements may change without prior notice. We make no representations or warranties, express or implied, about the completeness, accuracy, or suitability of the information for any particular purpose. We shall not be held responsible for any loss, damage, or inconvenience arising from the use or reliance on this information. Please refer to official Lembaga Hasil Dalam Negeri Malaysia (LHDN) and official RMCD sources for the most current regulatory updates and seek professional advice when necessary.