Search Articles

Find tips, tools and how-to guides on every aspect of property

Threshold for annual sales tax to be raised to RM500,000 under SST


© thamkc | 123rf

7 August, KUALA LUMPUR – The Government will increase the annual sales threshold for eligibility to register for the Sales Tax to RM500,000 annually under the Sales and Tax Service Tax (SST) from RM100,000 previously.

Finance Minister Lim Guan Eng said the annual turnover threshold of RM500,000 would also apply to manufacturers who carried out sub-manufacturing activities, for which the annual sales threshold was at RM20,000 before.

“This is to enable small-sized manufacturers to operate without having to pay this tax,” he said when tabling the Sales Tax Bill 2018 for the second reading at the Dewan Rakyat today.

Lim said the government expected only 27,456 manufacturers would be registered under the Sales Tax compared with 32,725 under the Goods and Services Tax (GST).

He said subsequently, most manufacturers would fall out of the scope of the Sales Tax and this would eventually reduce the cost of tax compliance and administration for small-sized manufacturers.


Disclaimer: The information is provided for general information only. Malaysia Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

More Articles