What is SST in Malaysia (SST是什么)?
- Sales Tax: Applied to goods manufactured locally or imported into Malaysia.
- Service Tax: Levied on specific services provided within the country.
What is the Rates for SST in Malaysia?
- Sales Tax at 5%: Applies to food items such as butter, cheese, honey and etc.
- Sales Tax at 10%: The standard rate, usually levied on taxable goods, including mineral water, shampoo, detergent and etc.
- Service Tax at 8%: New in 2024, the service tax has increased from 6% to 8%, applicable to all services except food & beverage, telecommunication, parking, and logistics.
- Service Tax at 6%: Applies to food & beverage services, telecommunication services, parking services, and logistics.
- Exempted : Some goods and services are exempted from tax.
SST Registration Requirements
Businesses must register for SST if they meet the following conditions:
- Sales Tax Registration:
- Engaged in manufacturing taxable goods.
- Total sales exceed or will exceed the threshold of RM 500,000.
- Service Tax Registration:
- Engaged in providing taxable services.
- Total sales exceed or will exceed the threshold of RM 500,000 (some services may have different thresholds).
The deadline for registration is no later than last day of the following month after exceeding the threshold. Registration can be done via the MySST portal.
Exemptions Under SST
Certain goods are exempt from sales tax, particularly those meant for export, reflecting Malaysia’s support for export-driven industries. Other exemptions include:
- Foods (e.g., egg, chicken meat),
- Printed materials (e.g., drawing books),
- Essential oil,
- Contact lenses
These exemptions help to promote education, healthy living, and economic activity in key sectors.
Penalties for Non-Compliance to SST Malaysia
Non-Submission of SST Returns
- A fine of up to RM 50,000,
- Imprisonment for up to three years,
- Or both.
Non-Payment of SST Dues
- A fine of up to RM 50,000,
- Imprisonment for up to three years,
- Or both.
Late Payment Penalties
Penalties increase based on the duration of the delay:
- 1-30 days late: 10% penalty,
- 31-60 days late: Additional 15% penalty,
- 61-90 days late: Additional 15% penalty,
- 91+ days: Maximum penalty of 40%.
GST vs SST | How is SST Different from GST?
While Goods and Services Tax (GST) was a multi-stage tax system applied at every stage of the supply chain, SST is a single-stage tax. Here’s a quick comparison:
Feature | SST (Active in 2024) | GST (Repealed) |
Tax Structure | Single-stage (charged at point of sale) | Multi-stage (charged at each stage of supply) |
Rates | Sales Tax: 5-10%, Service Tax: 6-8% | 6% standard rate |
Scope | Narrower, fewer items taxed | Broader, applied to most goods and services |
Repealed/Active | Active (since 2018) | Repealed in June 2018 |
While GST was repealed, there are ongoing debates on its potential reintroduction in the future, given its ability to generate higher revenue for the government.
SST Calculation: How to Compute Your Tax Liability
The SST is computed based on the sales value of taxable goods or services. For sales tax:
- Sales Tax = Sales Value x Sales Tax Rate (5% or 10%).
For service tax:
- Service Tax = Service Value x Service Tax Rate (6% or 8%).
For businesses, accurate SST filing is crucial to avoid errors, and penalties.
Learn Simplified SST Registration Process
Registering for SST is straightforward and can be done online via the MySST portal:
Simplify SST Malaysia Compliance: Discover YYC taxPOD’s Expert Solutions!
Step-by-step guides
Video tutorials and webinars
Expert consultation
Bilingual resources
Step-by-step guides
Video tutorials and webinars
Expert consultation
Bilingual resources
YYC taxPOD: Your Partner for Smooth SST Compliance in Malaysia!
Staying compliant with SST regulations is vital to running a successful business in Malaysia. Through YYC TtaxPOD, you gain access to comprehensive SST knowledge and expert guidance tailored to help you meet your tax obligations efficiently.
Start Your SST Journey Today: Visit YYC taxPOD and learn how to navigate SST regulations effortlessly. Don’t let the complexity of tax compliance slow you down—stay ahead with the right knowledge!
FAQs about SST Malaysia
YYC taxPOD, or Tax Professionals On Demand, is a platform developed by YYC that offers unlimited access to decades of our tax-saving knowledge. The TaxPOD Masterclass plan will give you access to our TaxPOD Masterclass videos, 12 monthly live tax update classes, and live tax webinars all year round.
Remember, once you have paid out the money for company tax, you will never be able to get it back! Ever! YYC taxPOD is here to help bosses like you not to pay even a single cent of unnecessary tax!
»Learn How to Get a 100% Tax Deduction!
Example 1:
You invited your clients to an event that you organised for a special occasion. Initially, the entertainment expense incurred was only entitled to a 50% tax deduction. However, if you had managed to make it into a sales event with proper planning, then the expenses would have been 100% tax-deductible! That would have made a huge difference!
»Learn How to Strategise Your Tax Estimation!
Example 2:
A customer recently overpaid his tax, which amounted to RM 500k, due to his lack of knowledge in tax estimation. He had no income during the MCO as most of his projects were halted. Unfortunately, the IRB seized his RM 500k cash flow, and he only managed to retrieve it after a very long time.
You should never pay more advance tax than necessary just because you are afraid of getting penalised by the IRB! How do you prevent that from happening? Well, you can learn various tax estimation strategies via our YYC taxPOD platform.
While our case studies are mainly focused on companies, key tax concepts such as the taxability of income and deductibility of business expenses still apply to sole proprietorships and partnerships.
A huge portion of your business profit is spent on paying tax expenses. As a business owner, you must be the leading person to care about company taxes. Your concern towards taxes will show your employees that you care, and they will follow along. That is the POWER OF INFLUENCE.
At the end of the day, it is you who will have to bear the unnecessary tax payments and penalties.
What YYC taxPOD offers can give you greater peace of mind. It is the one-stop solution for all your tax matters. It is hassle-free and easily accessible anytime anywhere. Not only does YYC taxPOD offer decades of tax-saving knowledge gathered from experts, but it also provides update classes to give you the latest scoop on tax developments.
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You could be missing out on the chance to save more money when paying taxes! You may think that you can rely on your finance staff. However, they tend to declare more tax sometimes to avoid getting tax penalties!
In that case, they may not be tax-efficient, and your business may end up paying more than necessary. Now, don’t get the wrong idea! What you can expect to learn on YYC taxPOD is not tax evasion, but how to save tax with proper and careful planning.
It is very important to master tax saving skills because that will help your business to increase cash flow and further elevate the value of your business.
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Certificates for course completion are available for download within the platform.
Currently, questions cannot be asked within our platform, but all of our tax-related webinars that you will have access to throughout your subscription period include live Q&A sessions, where our tax professionals can answer your questions on-the-spot.
Your annual subscription for YYC taxPOD will start when payment is made and will continue for a period of one year. Annual subscriptions purchased are billed annually at the beginning of the subscription.
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YYC is an Asian-grown accounting and advisory firm. Established in 1974, YYC Group has more than 47 years of experience in helping clients take their businesses to newer heights.
Backed by our commitment to empower entrepreneurial success, YYC Group has served 20,000 clients across Malaysia and Singapore. Through our YYC Business School, we have also trained more than 130,000 participants with more than 5,000 workshops conducted to date.
