Service Tax Policy No. 3/2024: Determination of Service Tax Rates for the provision of various Taxable Services by the same Service Provider

Introduction

The Service Tax Policy No. 3/2024, issued by the Royal Malaysian Customs Department on 28 February 2024, provides directives on determining the service tax rate when a single registered person provides multiple taxable services.

Purpose

The policy aims to establish clear principles for designating the applicable service tax rate in scenarios where registrants under Groups A-E supply services across different categories.

Key Points

The policy stipulates that generally the tax rate will follow the specific taxable service provided rather than the registrant’s principal service.

However, a bundled supply takes the rate of the overall service category.

Conclusion

In summary, the tax policy grants definitive guidelines for registered persons providing a mix of taxable services, either individually or in bundled form.

This facilitates accounting of tax by eliminating ambiguity over the appropriate rate based on detailed illustrations for different business categories.

Reference:

338.1 Dasar Cukai Perkhidmatan Bil 3-2024.pdf

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