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Amendments to Service Tax Regulations

Following the proposed amendments announced in the 2020 Budget, the Service Tax (Amendment) (No.2) Regulations 2019 was published in the Federal Government Gazette on 23 December 2019. 

These Regulations come into operation on 1 January 2020.

Please click on the above header link for a copy of the Amendment at the official portal of e-Federal Gazette.

Set out below is a summary of the amendments:-

1.     “Intra group relief” – where a company provides any taxable service to another person outside the group of companies, the same taxable service provided to any company within the group shall not be a taxable service, provided the total value of taxable services to another person outside the group in that month and the next 11 months does not exceed 5% of the total value of taxable services.

2.     Training or coaching services

§  Taxable person excludes any training centre or coaching centre:-

(i)     registered with the Ministry of Health;

(ii)    registered with the Social Welfare Department;

(iii)   recognized by any national association for persons with disabilities registered with the Registrar of Societies Malaysia.

§  Taxable service excludes provision of training services or coaching services provided to a person who holds a valid Kad OKU issued under the Persons with Disabilities Act 2008. 

3.     Addition to Group G (Professionals)

§  Taxable person – any person who operates online platform or market place.

§  Taxable service –

l)      Provision of electronic medium that allows the suppliers to provide supplies to customers.

m)   Provision of digital services including transaction for provision of digital services on behalf of any person.

4.     Information technology (IT) services – taxable service includes distributing or reselling of IT services on behalf of any person.

5.     Telecommunication services – taxable service includes provision of digital services.

6.     Advertising services – taxable service includes digital advertising services. 

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.

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
ltai1@kpmg.com.my
+ 603 7721 7020

Long Yen Ping
Executive Director –
Head of Global Mobility Services yenpinglong@kpmg.com.my
+ 603 7721 7018

Bob Kee
Executive Director –
Head of Transfer Pricing
bkee@kpmg.com.my
+ 603 7721 7029

Ng Sue Lynn
Executive Director –
Head of Indirect Tax
suelynnng@kpmg.com.my
+ 603 7721 7271

Soh Lian Seng
Executive Director –
Head of Tax Risk Management
lsoh@kpmg.com.my
+ 603 7721 7019

Nicholas Crist
Executive Director –
Corporate Tax
nicholascrist@kpmg.com.my
+ 603 7721 7022

Dato’ Leanne Koh
Executive Director – 
Corporate Tax
leannekoh@kpmg.com.my
+ 603 7721 7026

Neoh Beng Guan
Executive Director – 
Corporate Tax
bneoh@kpmg.com.my
+ 603 7721 7025

Ong Guan Heng
Executive Director – 
Corporate Tax
guanhengong@kpmg.com.my
+ 603 7721 7027

Chang Mei Seen
Executive Director – 
Transfer Pricing
meiseenchang@kpmg.com.my
+ 603 7721 7028

Ivan Goh
Executive Director – 
Transfer Pricing
ivangoh@kpmg.com.my
+ 603 7721 7012

 

 

 

Evelyn Lee 
Executive Director –
Penang Tax
evewflee@kpmg.com.my
+604 238 2288 (ext. 312)

Regina Lau
Executive Director –
Kuching & Miri Tax
reglau@kpmg.com.my
+6082 268 308 (ext. 2188)

Titus Tseu
Executive Director –
Kota Kinabalu Tax
titustseu@kpmg.com.my
+6088 363 020 (ext. 2822)

Ng Fie Lih
Executive Director –
Johor Bahru Tax
flng@kpmg.com.my
+607 266 2213 (ext. 2514)

Crystal Chuah Yoke Chin
Tax Manager –
Ipoh Tax
ycchuah@kpmg.com.my
+605 253 1188 (ext. 320)