Appendix 1 ?Summarised First Schedule of STR 2018 in Malaysia
The Service Tax Regulations 2018 (“STR? prescribe the scope of taxable services under the First Schedule of the STR. The following table provides a summarised reference of the Schedule, prepared as at 30 September 2025, and is subject to updates in line with future legislative amendments.
|
Group
|
|
Service description
|
Threshold (RM)
|
SST rate
|
Examples ?/SPAN>
|
|
A
|
|
Accommodation ??/SPAN>
|
500,000
|
8%
|
Hotels, inns, homestay, similar establishments
|
|
B
|
|
Food and beverage ??/SPAN>
|
1,500,000
|
6%
|
Restaurant, bar, caf? catering services
|
|
C
|
|
Night clubs, dance halls, cabarets, Karaoke centre, wellness centre, massage parlour, public houses, beer houses ??/SPAN>
|
500,000
|
8%
|
Entrance fees, membership fees
|
|
D
|
|
Private club ?/SPAN>
|
500,000
|
8%
|
Membership fees, subscription fees, member services
|
|
E
|
|
Golf club and golf driving range ?/SPAN>
|
500,000
|
8%
|
Golf course, drive range, coaching, equipment rental
|
|
F
|
|
Betting and gaming
|
500,000
|
8%
|
Lotteries, sweepstakes, casinos
|
|
G
|
Professionals or skills
|
|
(a)
|
Legal services ?/SPAN>
|
500,000
|
8%
|
Legal consultation, contract drafting
|
|
(b)
|
Legal services on Islamic matters ?/SPAN>
|
500,000
|
8%
|
Shariah advisory services
|
|
(c)
|
Accounting, auditing, bookkeeping, consultancy or other professional services ?/SPAN>
|
500,000
|
8%
|
Payroll, tax filing, advisory services
|
|
(d)
|
Surveying services ?/SPAN>
|
500,000
|
8%
|
Land surveying, building surveying
|
|
(e)
|
Engineering consultancy services ?/SPAN>
|
500,000
|
8%
|
Design and planning services, structural engineering
|
|
(f)
|
Architectural services ?/SPAN>
|
500,000
|
8%
|
Master planning, site supervision
|
|
(g)
|
Consultancy / training / coaching services ?/SPAN>
|
500,000
|
8%
|
Business strategy, fitness training
|
|
(h)
|
Information technology services ?/SPAN>
|
500,000
|
8%
|
IT support, system maintenance, cybersecurity
|
|
(i)
|
Management services ?/SPAN>
|
500,000
|
8%
|
Project management, facilities management
|
|
(j)
|
Employment services ?/SPAN>
|
500,000
|
8%
|
Employment agencies, recruitment, headhunting
|
|
(k)
|
Private agency services ?/SPAN>
|
500,000
|
8%
|
Security guards, patrol services
|
|
(l)
|
Digital services ?/SPAN>
|
500,000
|
8%
|
Streaming services, online advertising
|
|
(m)
|
Deleted by [P.U.(A) 149/2020]
|
-
|
-
|
-
|
|
(n)
|
Maintenance or repair services ?/SPAN>
|
500,000
|
8%
|
Motor vehicle repair workshops, air-conditioning maintenance
|
|
H
|
Finance
|
|
|
Credit card / charge card ?/SPAN>
|
NIL
|
RM 25 flat charges
|
Issuance of principal credit / charge card or supplementary card
|
|
|
Insurance / Takaful services ?/SPAN>
|
1,000,000
|
8%
|
Insurance policy, takaful certificate
|
|
|
Financial services ?/SPAN>
|
1,000,000
|
8%
|
Investment banking services, financial advisory fees
|
|
I
|
Other service providers
|
|
|
Deleted by [P.U.(A) 172/2025]
|
-
|
-
|
-
|
|
|
Telecommunication and content applications service
|
500,000
|
6%
|
Broadband, mobile data, subscription broadcasting
|
|
|
Deleted by [P.U.(A) 62/2024]
|
-
|
-
|
-
|
|
|
Operator of parking spaces
|
500,000
|
6%
|
Parking lots, parking facilities
|
|
|
Motor vehicle repair / service centre
|
500,000
|
8%
|
General vehicle repair, vehicle inspection
|
|
|
Deleted by [P.U.(A) 62/2024]
|
-
|
-
|
-
|
|
|
Deleted by [P.U.(A) 172/2025]
|
-
|
-
|
-
|
|
|
Advertising services
|
500,000
|
8%
|
Outdoor signage, search engine marketing
|
|
|
Transmission and distribution of electricity services ?/SPAN>
|
500,000
|
8%
|
Operation of national power grid
|
|
|
Air passenger transport service ?/SPAN>
|
500,000
|
8%
|
Domestic flights, private jets, helicopters
|
|
|
Deleted by [P.U.(A) 232/2019]
|
-
|
-
|
-
|
|
|
Brokerage services ?/SPAN>
|
500,000
|
8%
|
Real estate brokerage, freight brokerage
|
|
|
Cleaning services ?/SPAN>
|
500,000
|
8%
|
Office cleaning, janitorial services
|
|
|
Private healthcare services ?/SPAN>
|
1,500,000
|
6%
|
Hospital charges, mortuary, ambulance
|
|
|
Traditional and complementary medicine services ?/SPAN>
|
1,500,000
|
6%
|
Acupuncture, Ayurvedic, homeopathy
|
|
|
Allied health services ?/SPAN>
|
1,500,000
|
6%
|
Physiotherapy, radiography
|
|
J
|
Logistic services
|
|
|
All kind of domestic logistic services ?/SPAN>
|
500,000
|
6%
|
Freight forwarding, courier, warehousing
|
|
|
Provision of services for the release of goods from customs control
|
NIL
|
6%
|
Custom brokerage, import / export documentation
|
|
K
|
|
Rental or leasing ?/SPAN>
|
1,000,000
|
8%
|
Rental of printers, building space, horses
|
|
L
|
|
Construction works ?/SPAN>
|
1,500,000
|
6%
|
Building construction, renovation works
|
|
M
|
Education
|
|
|
Pre-school, primary school, lower secondary, upper secondary or post-secondary private education services ?/SPAN>
(Fees exceeding RM60,000 per student per academic year)
|
NIL
|
6%
|
Tuition fees, registration fees, co-curricular charges
|
|
|
Education services provided to a non-citizen (higher education institutions)
|
NIL
|
6%
|
Tuition fees, registration fees, co-curricular charges, books and study material charges, facility charges
|
|
|
Education services provided to a non-citizen (registered language centres)
|
NIL
|
6%
|
- The services above are subject to exclusions as provided under the Service Tax Regulations 2018 and Service Tax (Persons Exempted from Payment of Tax) Orders.
-
Sales of goods such as cigarettes, tobacco products, smoking pipes (including pipe bowls), electronic cigarettes or other similar personal electric vaporizing devices, alcoholic and non-alcoholic beverages provided by the taxable persons are also subject to service tax.
- Examples provided above are illustrative only and are not exhaustive.
Important note: Even if the services are exempted from service tax, the revenue derived from those services must still be included when determining the registration threshold. Where the annual turnover exceeds the prescribed threshold, service tax registration is mandatory notwithstanding the exemptions.
This appendix is intended as a general reference only and should not be relied upon as a substitute for the legislation or official guidance issued by the RMCD.
Prepared as at 30 September 2025. The First Schedule is subject to future updates and amendments by the authorities.
KAIZEN Group, together with its associate firms in Malaysia, can help the clients to perform these compliances formalities so as to maintain the Malaysia company in good standing. Please call and talk to our professional accountants in Kaizen for further clarification. |
