(Tax Update) Logistics Sector Business-to-Business Service Tax Exemption

(Tax Update) Logistics Sector Business-to-Business Service Tax Exemption.

Key Summary

The Finance Minister announced that taxes for logistics services won’t apply to certain areas to avoid extra taxing at different levels. From March 1, 2024, a 6% tax was planned for these services, but now the government says the following won’t be taxed:

Services for goods sent abroad.
Services for moving goods from one ship to another at a port.
Services for moving goods through a place without staying there.
Door-to-door delivery services.
Online delivery of food and drinks.

Businesses in logistics won’t have to pay this tax when they buy the same services from each other.

The government made this change after listening to people’s concerns, including lawmakers, to make sure businesses aren’t paying too much tax when they use different logistics services.

Ministry of Finance Announcement

The expanded scope of exemption was announced by Minister of Finance II Datuk Seri Amir Hamzah Azizan in the Parliament on Monday.

The 6% service tax on the logistics sector was introduced on March 1. Other exemptions on the newly imposed tax include logistics services for transhipment, goods in transit, door-to-door, e-commerce food deliveries, and direct export products.

For newly registered logistics service providers, they will only be imposed the 6% service tax from April onwards, the ministry added.

Source

Ministry of Finance announcement on SST certain exemption for logistic company

https://www.mof.gov.my/portal/ms/berita/siaran-media/skop-pengecualian-cukai-perkhidmatan-sektor-logistik-diperluas-bagi-mengurangkan-kesan-cukai-berganda

Past Blog on SST

Service Tax Increase to 8% https://www.ktp.com.my/blog/service-tax-increase-to-8/29feb24

What is the new SST rate in Malaysia 1 March 2024? https://www.ktp.com.my/blog/what-is-the-new-sst-rate-in-malaysia-1-march-2024/15feb24

Visit Us

Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Bookkeeping, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients