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SST UPDATES via BUDGET 2026 & July 2025 IMPLEMENTATION REQUIREMENTS

16 Dec, 2025, Remote Online Training - Public

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Venue Details

Remote Online Training - Public


Contact us

FOR COURSE DETAILS

Juliany,

Office: 03 2283 6109

Mobile: +60 122281247

juliany@ipa.com.my

Phoebe,

Office: 03 2283 6100

Mobile: +60 193637822

phoebe@ipa.com.my

Bee Teng,

Office: 03 2282 6112

Mobile: +60 172566121

beeteng@ipa.com.my

FOR CUSTOMISED IN-HOUSE TRAINING

Jane,

Office: 03 2283 6101

Mobile: +60 129418251

jane@ipa.com.my

Keith,

Office: 03 2283 0000

Mobile: +60 162272735

keith@ipa.com.my

ADDRESS

A-28-5, 28th Floor, Menara UOA Bangsar,
No.5, Jalan Bangsar Utama 1,
59000 Kuala Lumpur

FOCUSING ON
  • Service Tax Updates And Its Implementation Mechanism
  • Key Service Tax Exemptions
  • Sales Tax Updates And Its Implementation Mechanism
  • Categories Of Sales Tax Exemptions
  • SST Administrative Matters
  • Implementation Health Check
OBJECTIVES

Sales and Service Tax (SST) since implementation w.e.f. 1/9/2018, has also undergone various updates constantly with its latest major updates taking effect from 1/7/2025.

Sales Tax had expanded the scope of taxable products to about 97% of the total about 12,000 HS codes in Malaysia and Service Tax coverage also expanded to cover rent or leasing, construction services, private education and private health care services. Other existing taxable services groups also saw changes and restructurings.

As a result of these expansions and restructuring, certain taxable services in certain groups also got redefined. Further updates are also anticipated in the 2026 budget.

Hence this training course is to provide an insight into its updates for implementation purposes and to assist participants in achieving the following objectives from these updates:

1. To Be Up-To-Dated With Their Implementation Requirements.
2. To Avoid Pitfalls / Issues In The Implementation.
3. Understand The Exemptions Available.

WHO SHOULD ATTEND
  • Business Owners and Company Directors
  • CEO, COO, CFOs, Financial Controllers and Finance Managers,
  • Accountants, Accounts Executives, Accounts Assistants.
  • Business Advisors, Auditors and Internal Audit Staff
  • Freelance Accounting Professionals,
  • Procurement/Purchasing/Sales/Logistics and other functional Managers
  • Other functional staff engaged in SST implementation matters.
METHODOLOGY
  • Interactive Lectures
  • Discussion
  • Questions & Answers
COURSE CONTENT
9:00

SERVICE TAX UPDATES AND ITS IMPLEMENTATION MECHANISM

  • Updates via 2026 Budgets
  • Updates via July 2025 Expansion and
    Redefinition of Services Tax Scope:
    - Redefined taxable services in Groups A to E and G,
    - Restructuring of Group H with scope expansion covering Financial Services
    - Expansion of Group I covering Private Health Care Services
    - Expansion of 3 more Groups:
    • Group K covering Rental and Leasing Services
    • Group L covering Construction Services
    • Group M covering Education Services
  • Implementation Mechanism of each updated category
    - Registration Requirement and Thresholds
    - Transitional Rules
    - SST treatment on different transaction scenarios
    - Materials usage in Construction Work – SST treatment.
    - Non-Taxable services
    - Business to Business Exemption and its Documentation Requirements.
    - Group Company’s Relief.
    - Micro-SME’s exemption
    - Treatment of SST payment on Construction Retention Money
    - E-Invoice Treatment for Retention Money.
    - SST treatment for Non-Reviewable contract
    - Treatment of implementation mechanism within and between Designated Areas and Special Areas.
    - Treatment of implementation mechanism between Malaysia and Designated Areas and Special Areas and vice versa.
    - Treatment of imported services under the expanded scope and its exemptions
    - Penalty grace period
10.45

OTHER KEY SERVICE TAX EXEMPTIONS

  • Person exempted from paying Service Tax facilities criteria.
  • Claiming refund of SToDS (Service Tax on Digital Services) incurred by local digital tax service provider.
  • Treatment of imported services requirement by all businesses including Non-SST register companies and its exemptions.
  • Service Tax treatment on Inter-Company Professional Services and definition of group companies AND when are these services
    taxable also to Group Companies.
 

SALES TAX UPDATES AND ITS IMPLEMENTATION MECHANISM

  • Updates via Budget 2026
  • Updates via July 2025 Expansion of Taxable Products
    - Transitional mechanism on Sales Tax rate change.
    - Treatment of your current AME Scheme
    - Treatment of exempted goods in stock that are exempted under Schedule B
    - What remains to be not subject to Sales Tax
    - Items that will be subject to 5%
    - Items that will be subject to 10%.
    - Rate determination.
12.00

OTHER CATEGORIES OF SALES TAX EXEMPTIONS

  • Types of exemptions under the exemption orders:
    - Goods exempted from charging Sales Tax
    - Persons exempted from paying Sales Tax – terms and conditions:
    • Schedule C –
  • Registered Manufacturers (RM) purchase direct,
  • Registered Manufacturers (RM) purchase through 3rd parties
  • Registered Manufacturers (RM) sub- contracting work out:
    - Between RM to RM in PCA areas
    - Between RM and non-RM in PCA areas
    - From Special Areas and Designated Areas to PCA Area
    - From PCA areas to Special Areas and Designated Areas
    - Criteria MUST meet to qualify for
    exemption under C5.
    - Schedule B – Non- Register Manufacturer on their production of 4 specific Sales Tax
    exempted goods.
    - Major Exporter Scheme
    - Schedule A – Other categories of person and its conditions requirements.
  • Procedures on Sales Tax treatment on
    scraps at different stage of production and finished goods.
  • Sales Tax Credit Systems.
  • Sales Tax drawback facilities vs Schedule A item 57 exemption.
1:00 Lunch
2:00

SST ADMINISTRATIVE MATTERS

  • Bad Debt Relief criteria
  • Refunds
  • Invoicing particulars requirements
  • SST payment basis – Accrual, Collection and Deemed Collect basis
  • Accounting for Imported Service mechanism for Non-SST Register Business.
  • Service Tax contra system
3:45

IMPLEMENTATION HEALTH CHECK

  • Key common areas to look out for errors for Sales Tax and Service Tax.
  • Audit coverage and awareness
  • Appeals

5:00 End of Course