With effect from 1 January 2011, the service tax rate has been changed from 5% to 6% (except for credit and charge cards) under the Service Tax (Rate of Tax) Amendment Order 2010.
The Royal Malaysian Customs Department has issued guidelines on the implementation of service tax arising from the Budget 2011 announcement. The Guidelines provide guidance on when the 5% (old rate) and 6% (new rate) applies in the case where the payment date and the service period falls into two different years i.e. 2010 and 2011 or the service period overlaps two years i.e. 2010 and 2011.
Go to MLTIC for details of the following: