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Service Tax – 12-Month “Deemed Paid” Rule

In general, Service Tax for the provision of taxable services is due at the time when payment is received for the services provided, subject to the 12-month deemed paid rule. 

Under the 12-month deemed paid rule, where payment for any taxable service provided is not received within a period of 12 months from the date the taxable service was provided (instead of date of invoice, effective 1 September 2019), Service Tax shall be due on the day following that period.

Any person who is registered for Service Tax effective 1 September 2018 with bi-monthly taxable period but have not received payment for taxable services provided in September 2018 are required to account for Service Tax in the SST-02 Return as follows:-

Taxable Period

Due Date

August 2019 to September 2019

31 October 2019

September 2019 to October 2019

30 November 2019

Meanwhile, there has been a recent amendment whereby, effective 1 September 2019, application can be made to the Director General for Service Tax to be due at the time the invoice is issued (instead of when payment is received from the customer).  Businesses who do not wish to keep track of payments received from customers to determine the time to account for Service Tax may apply to Customs to account for Service Tax based on invoice issuance basis.   

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Contact KPMG

For more information on our core service offerings, please contact:

Petaling Jaya Office

Tai Lai Kok
Executive Director –
Head of Tax and Head of Corporate Tax
+ 603 7721 7020

Long Yen Ping
Executive Director –
Head of Global Mobility Services
+ 603 7721 7018

Bob Kee
Executive Director –
Head of Transfer Pricing
+ 603 7721 7029

Ng Sue Lynn
Executive Director –
Head of Indirect Tax
+ 603 7721 7271

Soh Lian Seng
Executive Director –
Head of Tax Risk Management
+ 603 7721 7019

Nicholas Crist
Executive Director –
Corporate Tax
+ 603 7721 7022

Dato’ Leanne Koh
Executive Director – 
Corporate Tax
+ 603 7721 7026

Neoh Beng Guan
Executive Director – 
Corporate Tax
+ 603 7721 7025

Ong Guan Heng
Executive Director – 
Corporate Tax
+ 603 7721 7027

Chang Mei Seen
Executive Director – 
Transfer Pricing
+ 603 7721 7028

Ivan Goh
Executive Director – 
Transfer Pricing
+ 603 7721 7012




Evelyn Lee 
Executive Director –
Penang Tax
+604 238 2288 (ext. 312)

Regina Lau
Executive Director –
Kuching & Miri Tax
+6082 268 308 (ext. 2188)

Titus Tseu
Executive Director –
Kota Kinabalu Tax
+6088 363 020 (ext. 2822)

Ng Fie Lih
Executive Director –
Johor Bahru Tax
+607 266 2213 (ext. 2514)

Crystal Chuah Yoke Chin
Tax Manager –
Ipoh Tax
+605 253 1188 (ext. 320)