THE Ministry of Finance (MOF) has announced transitional relief measures to support industry players adapting to the revised scope of the Sales and Service Tax (SST), following feedback on difficulties in meeting operational compliance.
In a statement issued today, MOF said the government would allow service providers to submit their tax returns manually for the taxable period from 1 July to 30 September 2025.
“Nevertheless, Service Tax (ST) must still be charged and collected during this period. The MADANI government acknowledges that service providers may require additional time to upgrade systems to meet compliance and tax enforcement requirements,” the ministry stated.
On the manufacturing side, MOF clarified that registered manufacturers are required to begin charging and collecting Sales Tax (ST) from 1 July 2025. These manufacturers may apply for exemptions on raw materials used in the production of taxable goods.
Additionally, companies that have already been granted Sales Tax exemptions by the Tax Exemption Committee (JPC) under the Malaysian Investment Development Authority (MIDA) prior to 1 July will continue to enjoy those exemptions, subject to existing conditions and durations.
“However, if these companies begin manufacturing taxable finished goods after 1 July and exceed the prescribed threshold, they will be required to register as registered manufacturers and may apply for exemptions via the MySST portal at mysst.customs.gov.my,” said MOF.
The ministry expressed hope that the measures would help facilitate smoother business operations and encourage compliance among companies affected by the expanded SST scope.
The public and business community are encouraged to contact the Royal Malaysian Customs Department’s Call Centre hotline for any query at 1-300-888-500. - July 4, 2025
