Latest news with #SalesandServiceTax
New Straits Times
3 hours ago
- Business
- New Straits Times
Register early for SST to avoid extra costs, tax expert tells businesses
KUALA LUMPUR: Businesses that fall under the scope of the expanded Sales and Service Tax (SST) should register early to avoid extra costs during the transition period. Customs Department announced that businesses could voluntarily register for SST from today and be registered from July 1. The mandatory registration deadline is Aug 31. The expanded SST kicks in on Sept 1. Henesh Kannaa, executive director of TRATAX Sdn Bhd, a tax consulting firm based in Kuala Lumpur, said it would be financially beneficial for businesses to register before the Aug 31 deadline. "Due to technical reasons, some businesses are better off registering sooner than later," he said in a LinkedIn post. Citing the example of a manufacturer that exports all its finished goods, Henesh said previously, if the finished goods were exempt, this manufacturer could remain unregistered under SST but still benefit from the B4 exemption, a provision that allows for import or purchase of taxable materials without paying sales tax. However, with the inclusion of more goods under the taxable category beginning September, these businesses would now be required to register for SST, he said. Under the new rules, registered manufacturers might qualify for the C1 exemption, which similarly allows for tax-free acquisition of raw materials, he said. "But here's the catch for any imports or purchases made in July and August, it appears that the manufacturer may be ineligible for both B4 and C1 exemptions if it has not registered early. "This could lead to higher input costs during these two months solely due to the technicalities of the SST law," Henesh said. To avoid extra costs, he advised manufacturers to register for SST by June 30 so that they could get the C1 exemption from July 1. He said service providers could benefit from early registration, especially those involved in business-to-business (B2B) transactions. "Some service businesses may want to register early to avoid breaking the chain of B2B exemptions. "A careful assessment is needed to weigh the pros and cons of registering by June 30 versus waiting until the Aug 31 deadline. "The right choice really depends on each business's circumstances." Henesh said early registration is only available to businesses that are not currently SST-registered. For those already registered, the expanded scope will automatically take effect on July 1, with no option to delay compliance to September, he said.
The Sun
10 hours ago
- Business
- The Sun
Three key amendments to SST following feedback
PETALING JAYA: The government has announced three key amendments to the Sales and Service Tax (SST) following public and industry feedback since the revision was unveiled on June 9. In a statement yesterday, the Finance Ministry said the amendments include exempting certain imported fruits from sales tax, raising the service tax threshold for rental and financial services to RM1 million and dropping the proposed tax on beauty services. 'After due consideration on the feedback received with respect to sales tax on imported fruits, Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance minister, agreed to exempt imported apples, oranges, mandarin oranges and dates from sales tax. 'The ministry would like to reiterate that the Madani government has not imposed sales tax on daily essential goods in order to mitigate pressure on the cost of living for the majority of Malaysians. 'These tax-exempted essential goods, whether locally produced or imported, include rice, chicken, beef, vegetables and eggs. Local fish varieties, including selar, tongkol, cencaru, and sardines will also continue to be exempt from sales tax.' To ease the burden on small businesses, Anwar has approved an increase in the service tax registration threshold from RM500,000 to RM1 million for leasing, rental, and financial services. 'Additionally, after carefully considering public sentiment, the government has also decided not to proceed with the proposed expansion of service tax on beauty services such as manicure and pedicure, facial service, barbers and hairdressers,' said the ministry.
The Sun
10 hours ago
- Business
- The Sun
Malaysia drops beauty tax, eases SST rules after feedback
PETALING JAYA: The government has announced three key amendments to the Sales and Service Tax (SST) following public and industry feedback since the revision was unveiled on June 9. In a statement yesterday, the Finance Ministry said the amendments include exempting certain imported fruits from sales tax, raising the service tax threshold for rental and financial services to RM1 million and dropping the proposed tax on beauty services. 'After due consideration on the feedback received with respect to sales tax on imported fruits, Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance minister, agreed to exempt imported apples, oranges, mandarin oranges and dates from sales tax. 'The ministry would like to reiterate that the Madani government has not imposed sales tax on daily essential goods in order to mitigate pressure on the cost of living for the majority of Malaysians. 'These tax-exempted essential goods, whether locally produced or imported, include rice, chicken, beef, vegetables and eggs. Local fish varieties, including selar, tongkol, cencaru, and sardines will also continue to be exempt from sales tax.' To ease the burden on small businesses, Anwar has approved an increase in the service tax registration threshold from RM500,000 to RM1 million for leasing, rental, and financial services. 'Additionally, after carefully considering public sentiment, the government has also decided not to proceed with the proposed expansion of service tax on beauty services such as manicure and pedicure, facial service, barbers and hairdressers,' said the ministry.
The Star
11 hours ago
- Business
- The Star
Joy as looks, locks and lustre will not be taxed
PETALING JAYA: For executive Lina, happiness was indulging in facials every two to three months, and hair treatments as well as waxing, manicure and pedicure. And then, things turned ugly. The beauty procedures would all be subjected to the expanded Sales and Service Tax (SST) from Tuesday, the government said. Yesterday, though, the Finance Ministry did a U-turn, and Lina of Kuala Lumpur can sleep easy again. 'A lot of us women do facials every two to three months, then hair treatments as well as waxing, manicure and pedicure. 'We work hard for our money, and we spend most of it on the family. 'Treating ourselves in this way is a form of happiness,' she said, adding that the tax relief is welcomed. Assistant manager Faridah Begam Abdul, from Ampang, was happy about the SST exemption for gold because she is preparing for a wedding. 'The price of gold has already soared with global uncertainties, and if you add SST, the total cost will be higher. 'As such, any exemption is welcomed and it will benefit those who invest in gold,' she said. Dentist Kimberly Tan, from Petaling Jaya, was thankful for the SST exemption on apples and oranges as her two kids love to eat fruit often. 'Fruits are my kids' favourites; they consume a lot of it every week so this is a relief for us. 'I hope they can expand the exemption to more fruits and other essentials like baby products and healthcare items since these are necessities for young families,' she said. Following public concern and feedback from industry players, the government has exempted SST expansion for the beauty industry, gold as well as imported apples and oranges. United Asian Hairdressers Association president Dr Michael Poh said they are elated with the decision to exclude the beauty industry from SST. 'This milestone marks official recognition of the hair and beauty industry as a necessity, not a luxury, a critical turning point in our nation's socio-economic landscape,' he said while expressing gratitude to the Finance Ministry. Syiling Unisex Hair Salon owner Mogana Chinnathamby hailed the tax exemption as a win for micro and small enterprises, particularly those in the grooming and beauty sector. 'This is not just a SST matter. It's about protecting livelihoods, ensuring accessible grooming for everyone, and keeping Malaysia's service economy thriving. 'A heartfelt thank you to the ministries involved,' she said. On June 16, the Federation of Malaysian Business Associations had held a dialogue with Finance Minister II Datuk Seri Amir Hamzah Azizan to put forward industry concerns over the SST expansion implementation on July 1.
The Star
11 hours ago
- Business
- The Star
Smile, no SST for facials now
Haircut minus the guilt: Stylist Joseph Low cutting the hair of a client in Bandar Kinrara, Puchong. — AZHAR MAHFOF/The Star PETALING JAYA: Those going to beauty parlours can smile now –manicures, pedicures, facials and haircuts will remain exempted under the expanded Sales and Service Tax (SST). The government has issued a revised tax list, following public concern and feedback, to cushion the impact of the tax on the people and small businesses. In a broader move to manage cost-of-living pressures, the government will also exempt selected imported fruits – apples, oranges, mandarin oranges and dates – from the sales tax. The Finance Ministry said the decision was made by Prime Minister Datuk Seri Anwar Ibrahim, who also holds the finance portfolio, after taking into account widespread sentiment ahead of the SST expansion from July 1. The ministry, in a statement, reaffirmed that essential food items such as rice, chicken, beef, vegetables, eggs and various local fish – including selar (yellowtail scad), tongkol (longtail tuna) and cencaru (torpedo scad) – whether fresh, chilled or frozen, remain exempt from the tax. These types of fish are staple protein sources for many households due to their affordability and accessibility. The SST will also not be imposed on the purchase of gold, said Treasury secretary-general Datuk Johan Mahmood Merican. He said the government decided not to tax gold purchases as it is a medium of investment, and for cultural and economic reasons, too. 'Gold bars and jewellery are often considered investment tools or savings. 'From a cultural perspective, gold plays an important role in various communities, often given as symbolic gifts or blessings during significant life events such as the birth of a child or weddings. 'Even if you walk into a jewellery shop to buy a gold necklace or similar items, no tax will be imposed,' he said in a Finance Ministry TikTok live session titled 'SST Naik, Semua Harga Pun Naik?' (SST Gone Up, All Prices Going Up Too?). Johan noted that some businesses also use gold as collateral to obtain operational funds or loans. On the fruits getting exemption, he said although apples and oranges are not cultivated in Malaysia, they are integral to daily life. He also pointed out that during Chinese New Year or Hari Raya, the demand for these fruits – including mandarin oranges and dates – are particularly high, justifying the tax exemption. Johan noted that fruits like locally-grown banana will not be taxed, while imported fruits like strawberries, blueberries and avocados are considered 'selective items', and will continue to be taxed. 'The cost of our 'pisang goreng' will not increase. But if imported bananas are used, they will be taxed,' he said. Hairdressers and beauty salon operators had voiced concern that taxing their services would unfairly burden small businesses and lower-income consumers. To reduce the burden on small businesses, the annual sales threshold for mandatory service tax registration has been raised from RM500,000 to RM1mil for leasing, rental and financial services. This means only companies generating over RM1mil in yearly sales from such services will be required to charge the 8% tax. For financial services, the tax applies specifically to fee- or commission-based activities. The ministry also reminded the public and stakeholders to refer only to verified information on the SST rollout, including official announcements, guidelines, FAQs and subsidiary legislation available through the Finance Ministry and Customs Department websites. Further enquiries can be directed to the Customs Department SST Call Centre at 1-300-888-500 or through the dedicated hotline numbers.
