Malaysia raises the general service tax rate from 6% to 8% from 1 March 2024
This page records one dated change. For the rules in Malaysia as they stand today, see the Malaysia guide →
- Jurisdiction
- Malaysia
- Tax
- Service Tax
- Change type
- Rate change
- Status
- In force
- Impact
- FYI
- Announced
- 26 February 2024
- Effective
- 1 March 2024
- Instrument
- MY-SUBSIDIARY-LEGISLATION-P-U-A-64-2024
- Authority
- Attorney General's Chambers, Malaysia (Warta Kerajaan Persekutuan / Federal Gazette)
- Verified
- Fetched from official source · high confidence
Registered providers of taxable services in Malaysia, other than food and beverage, telecommunications, parking and logistics, plus foreign providers of digital services to Malaysian consumers.
No action — monitoring only.
The Service Tax (Rate of Tax) (Amendment) Order 2024 [P.U.(A) 64/2024], gazetted 26 February 2024, raised the general service tax rate from 6% to 8% with effect from 1 March 2024. Food and beverage services, telecommunications, parking operators, and logistics services remain at 6%. The companion Service Tax (Rate of Digital Services Tax) (Amendment) Order 2024 [P.U.(A) 67/2024] raised the rate on taxable digital services supplied by foreign providers from 6% to 8% at the same effective date.
What changed in detail
The Service Tax (Rate of Tax) (Amendment) Order 2024 [P.U.(A) 64/2024], gazetted on 26 February 2024, amends paragraph 3 of the Service Tax (Rate of Tax) Order 2018 [P.U.(A) 213/2018]. From 1 March 2024 the general rate of service tax is 8%, up from 6%.
Four categories stay at 6%:
- food and beverage services;
- telecommunications services;
- parking space provision;
- logistics services.
A saving clause sets the transitional rules. A service that began before 1 March 2024 and continues after it is taxed at 8% on the part attributable to the period from 1 March. Where a service is provided on or after 1 March 2024 but payment was received before that date, the tax on that payment is charged at 6%.
A companion instrument, the Service Tax (Rate of Digital Services Tax) (Amendment) Order 2024 [P.U.(A) 67/2024], raised the rate on taxable digital services supplied by foreign service providers from 6% to 8% from the same date.
What it means
This is the change that made 8% the default service tax rate in Malaysia, and in November 2026 it still is. The structure it introduced, a general rate with a short list of 6% exceptions, was carried forward and extended by the July 2025 rate order (P.U.(A) 173/2025), which moved the exceptions into a First Schedule and added healthcare, construction and education to it. Rental and leasing was added to that 6% list later, by P.U.(A) 125/2026. For invoices issued now, check the current First Schedule rather than the 2024 list.
Proof
This Order comes into operation on 1 March 2024.
Source snapshot of the official page. Open full size ↗Archived from the official distribution · P.U.(A) 64/2024 — Service Tax (Rate of Tax) (Amendment) Order 2024 (Federal Government Gazette, 26 February 2024) · lom.agc.gov.my