Starting 1 July: Rental and Leasing Services Now Subject to 8% Service Tax
From 1 July 2025, Malaysia will impose an 8% service tax on rental and leasing services under Group K, STR 2018, expanding the tax scope to cover more businesses leasing tangible assets.
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ArticleTax & AccountingJuly 29, 2025
Starting 1 July: Rental and Leasing Services Now Subject to 8% Service Tax
From 1 July 2025, Malaysia will impose an 8% service tax on rental and leasing services under Group K, STR 2018, expanding the tax scope to cover more businesses leasing tangible assets. -
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Effective 1 July 2025, Malaysia's service tax now covers more categories to improve compliance and widen the tax base. Key changes outlined below. -
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