SST rates and registration thresholds in Malaysia (living table)
Written by the Lejar team
This is a living reference table for Malaysia's Sales and Service Tax: the rate and registration threshold for each taxable category, and a changelog of what has actually changed since the 1 July 2025 scope expansion. Verified against the Ministry of Finance's 9 June 2025 release and RMCD Service Tax Policy amendments, current as of 4 July 2026.
SST rates and registration thresholds by category
| Category | Rate | Registration threshold |
|---|---|---|
| Sales tax (goods) | 5% or 10%, by goods category | RM500,000 |
| Existing (pre-2025) taxable services | 6% or 8%, by service category | RM500,000 |
| Leasing and rental services | 6% (cut from 8% on 1 January 2026) | RM1,000,000 |
| Financial services | 8% | RM1,000,000 |
| Construction works | 6% | RM1,500,000 |
| Private healthcare (non-citizens) | 6% | RM1,500,000 |
| Private education (international students) | Flat fee, no percentage rate | RM60,000 per student per year |
| Credit and charge cards | RM25 per card per year, flat fee, not a percentage | No threshold |
Changelog: what changed, and when
- 1 July 2025: the service tax scope expanded to add leasing and rental, construction, financial services, private healthcare, and private education, alongside 5% and 10% sales tax on discretionary goods (Ministry of Finance release, 9 June 2025).
- 1 January 2026: the leasing and rental rate was cut from 8% to 6%, with a 2% refund mechanism for certain cases (RMCD Service Tax Policy 2/2025 Amendment 4, 6 February 2026).
- The construction non-reviewable-contracts exemption was extended to 30 June 2027 (Service Tax Policy 3/2025 Amendment 3, 30 January 2026).
- 1 January 2026: livestock and agricultural input exemptions took effect.
No new SST scope expansion in 2026
The scope expansion itself happened on 1 July 2025. Everything dated 2026 in the changelog above, the rental rate cut, the construction exemption extension, and the livestock and agricultural exemptions, is a refinement to that 1 July 2025 expansion, not a new category being brought into scope. If you see a claim that SST scope expanded again in 2026, it is describing these refinements, not a fresh expansion.
Frequently asked questions
What changed in SST for 2026?
No new categories came into scope in 2026. The changes are refinements to the 1 July 2025 expansion: the leasing and rental rate was cut from 8% to 6% (with a 2% refund mechanism for certain cases), the construction non-reviewable-contracts exemption was extended to 30 June 2027, and livestock and agricultural input exemptions took effect.
Do I need to register for SST?
You register once your 12-month taxable turnover crosses the threshold for your category: RM500,000 for sales tax and most existing services, RM1,000,000 for leasing, rental, and financial services, and RM1,500,000 for construction and private healthcare. Private education and credit cards use a flat fee rather than a turnover threshold.
Which SST rate applies to my service?
It depends on the category: sales tax on goods is 5% or 10%, most existing taxable services are 6% or 8%, leasing and rental is 6% (cut from 8% on 1 January 2026), financial services is 8%, and construction and private healthcare (for non-citizens) are 6%. Private education charges a flat RM60,000 per international student per year, and credit cards a flat RM25 per card per year.