Service Tax Act 1975 (Act 151) Regulations & Order (As at 1st July 2013)
Service Tax Act 1975 (Act 151)
Regulations & Order
(As at 1st July 2013)
Detailed Contents of Service Tax Act 1975 (Act 151):
Some taxable services rendered in Malaysia are subject to taxation under the Service Tax Act of 1975 (Act 151). Since it was first presented, the Act has undergone multiple revisions, the most recent of which became effective on July 1, 2013. The rules and directives in force as of that day are briefly summarised as follows:
- The 2018 Service Tax (Rate of Tax) Order establishes the service tax rate that will be applied to taxable services. 6% of the cost of the taxable service is the current rate.
- Listed in the 2018 Service Tax (Persons Exempt from Payment of Tax) Order are those who are exempt from paying service tax. The government, diplomatic missions, international organisations, as well as particular services for the aged and crippled, are among them.
- These regulations impose a service tax on taxable services offered by online platform providers. Service Tax (Imposition of Tax for Taxable Services Provided by Internet Platform Providers) Regulations 2019. The online platform provider is in charge of collecting and remitting the tax to the government. The tax is based on the value of the services rendered.
- The Service Tax (Repeal) Regulations of 2018 replace the Service Tax Regulations of 1975, which were in force before to the Act's 2013 changes.
- Service Tax (Person Offering Health Services) Regulations 2018: These regulations outline the requirements for service tax registration of individuals who provide health services. Medical, dental, and veterinary services are all classified as health services.
- Service Tax (Persons Exempt from Payment of Tax) (Amendment) Order 2019: This order modifies the 2018 order to add new categories of people who are exempt from paying service tax, such as certain services given to educational institutions.
- The 2018 Service Tax (Exemption) Order outlines the categories of services that are exempt from service tax. They include of financial services, certain insurance coverages, and specific transportation services.
The Service Tax Act of 1975 in Malaysia will be implemented and enforced thanks to these rules and directives. Businesses and people offering taxable services should be aware of these rules and directives because failing to do so could result in fines and/or legal action.
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