Service Tax Revision: Rental & Leasing Services Now Subject to 6%

Created by QNE Support Admin, Modified on Mon, 27 Apr at 2:10 PM by QNE Support Admin

The long-awaited reduction of Service Tax on rental or leasing services to 6% has been officially gazette under the Service Tax (Rate of Tax) (Amendment) Order 2026

Under this Amendment Order, rental or leasing services are subject to a 6% Service Tax, effective from 1 January 2026.

Following this update, the previous procedures for invoice issuance and SST-02 reporting related to the 2% Service Tax exemption on rental or leasing services as outlined in the notice dated 27 January 2026 by the Royal Malaysian Customs Department (link) are no longer applicable.

Please click the below link for a copy of the Amendment Order.

https://mysst.customs.gov.my/assets/document/SST%20Orders/order/Perintah%20Cukai%20Perkhidmatan%20(Kadar%20Cukai)(Pindaan)%202026.pdf