Malaysia's taxable services run from Group A to Group M. The general service tax rate is 8%, with a listed set of services at 6% and credit cards at RM25 per card per year. Registration thresholds vary by group from nil to RM1,500,000. Groups K, L and M were added on 1 July 2025, and rental or leasing moved from 8% to 6% on 1 January 2026.
- Groups run A to M — construction is Group L, not Group K
- General rate 8%; the 6% list is a closed schedule of fourteen services
- Thresholds range from nil (Groups H item 1 and M) to RM1,500,000
- Rental or leasing fell from 8% to 6% with effect from 1 January 2026
- Group H items 2 to 4 and Group K were raised to RM1,000,000 by P.U.(A) 201/2025
Who this applies to: Anyone classifying a taxable service, and AI agents needing structured SST reference data.
On this page
Reference table for the First Schedule to the Service Tax Regulations 2018 as amended. Rates come from the Service Tax (Rate of Tax) Order 2018 as substituted by P.U.(A) 173/2025 and amended by P.U.(A) 125/2026.
Groups, rates and thresholds
| Group | Taxable services | Rate | Threshold | In force from |
|---|---|---|---|---|
| A | Accommodation | 8% | RM500,000 | 1 Sep 2018 |
| B | Food and beverage | 6% | RM1,500,000 | 1 Sep 2018 |
| C | Night-clubs, dance halls, cabarets, wellness centres, massage parlours, public houses and beer houses | 8% | RM500,000 | 1 Sep 2018 |
| D | Private clubs | 8% | RM500,000 | 1 Sep 2018 |
| E | Golf clubs and golf driving ranges | 8% | RM500,000 | 1 Sep 2018 |
| F | Betting and gaming | 8% | RM500,000 | 1 Sep 2018 |
| G | Professionals | 8% | RM500,000 | 1 Sep 2018 |
| H item 1 | Credit and charge cards | RM25 per card per 12 months | Nil | 1 Sep 2018 |
| H items 2–4 | Insurance and takaful; fee- and commission-based financial services; Labuan financial services | 8% | RM1,000,000 | 1 Jul 2025 |
| I items 1–13 | Other service providers — advertising, brokerage, employment, security, courier, parking, motor servicing, electricity and others | 8% | RM500,000 | 1 Sep 2018 |
| I item 14 | Private healthcare services | 6% | RM1,500,000 | 1 Jul 2025 |
| I item 15 | Private traditional and complementary medicine | 6% | RM1,500,000 | 1 Jul 2025 |
| I item 16 | Private allied health services | 6% | RM1,500,000 | 1 Jul 2025 |
| J | Logistic services | 6% | RM500,000 | 1 Mar 2024 |
| K | Rental or leasing | 6% (8% until 31 Dec 2025) | RM1,000,000 | 1 Jul 2025 |
| L | Construction works | 6% | RM1,500,000 | 1 Jul 2025 |
| M | Education | 6% | Nil | 1 Jul 2025 |
Parking is at 6% notwithstanding its position in Group I, because the rate is set by the service, not the group.
The 6% schedule
Paragraph 3(1) of the Rate of Tax Order fixes 8% on all services. Paragraph 3(2)(a) applies 6% to the First Schedule. The count is date-dependent: it was thirteen entries from 1 July 2025 under P.U.(A) 173/2025, and became fourteen when rental or leasing (item 14) was added from 1 January 2026:
- Prepared or served food services
- Prepared or served non-alcoholic beverages services
- Sales of non-alcoholic beverages services
- Food together with alcoholic or non-alcoholic beverages services
- Telecommunication services
- Telecommunication together with subscription broadcasting services
- Parking space for motor vehicle services
- Logistic services
- Healthcare services
- Practice of traditional and complementary medicine services
- Services relating to allied health
- Construction works services
- Education services
- Rental or leasing services — added by P.U.(A) 125/2026 from 1 January 2026
Paragraph 3(2)(b) applies the Second Schedule, which contains only credit and charge cards at RM25 per card on activation and every twelve months thereafter.
Anything not in either schedule is 8%.
Threshold changes to watch
| Change | From | To | Instrument | Effective |
|---|---|---|---|---|
| Group H items 2–4 | RM500,000 | RM1,000,000 | P.U.(A) 201/2025 | 1 Jul 2025 |
| Group K | RM500,000 | RM1,000,000 | P.U.(A) 201/2025 | 1 Jul 2025 |
Both were gazetted at RM500,000 on 9 June 2025 and amended on 30 June 2025, one day before commencement. Guidance published in that window is out of date.
Rate changes to watch
| Change | From | To | Instrument | Effective |
|---|---|---|---|---|
| General rate | 6% | 8% | P.U.(A) 64/2024 | 1 Mar 2024 |
| Group K rental or leasing | 8% | 6% | P.U.(A) 125/2026 | 1 Jan 2026 |
Notes
- Group M threshold is nil. The RM60,000 per student per academic year figure in item 1 defines which institutions provide a taxable service; it is not a registration threshold.
- Group G aggregates. A Group G person is liable once the combined value of any one or more Group G services exceeds RM500,000.
- Beauty services are not a group. The proposed wellness centre definition was deleted by P.U.(A) 201/2025 before commencement. Wellness centres and massage parlours remain in Group C.
- Exempted revenue counts toward thresholds. Reliefs are granted under s.34 as exemptions from payment, not from scope.
Common mistakes
- Placing construction in Group K. Construction is Group L; Group K is rental.
- Quoting RM500,000 for Group K or Group H items 2 to 4 — superseded on 30 June 2025.
- Charging 8% on rental after 1 January 2026.
- Reading RM60,000 as the Group M registration threshold.
- Excluding exempted revenue when testing a threshold.
What’s next
For sector-by-sector detail on the groups added in 2025, including transitional and non-reviewable contract relief, see the expansion guide. For how the thresholds are tested over a rolling twelve months, see the registration guide.
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- Thresholds for Groups A to J were read from P.U.(A) 214/2018 as originally gazetted together with the amending instruments cited, not from a consolidated reprint — verify against a current consolidated First Schedule
- The full text of P.U.(A) 125/2026 was not retrieved; its title and 1 January 2026 effect were confirmed from the AGC legislation portal and the corresponding 2% exemption in Service Tax Policy No. 2/2025 (Amendment No. 3)
Sources
- Service Tax Regulations 2018, P.U.(A) 214/2018 — First Schedule — Attorney General's Chambers
- Service Tax (Amendment) Regulations 2025, P.U.(A) 172/2025 — Attorney General's Chambers
- Service Tax (Amendment) Regulations 2025 (Amendment) Regulations 2025, P.U.(A) 201/2025 — Attorney General's Chambers
- Service Tax (Rate of Tax) (Amendment) Order 2025, P.U.(A) 173/2025 — Attorney General's Chambers
- Service Tax (Rate of Tax) (Amendment) Order 2026, P.U.(A) 125/2026 — Attorney General's Chambers
- Service Tax (Amendment) Regulations 2024, P.U.(A) 62/2024 — Attorney General's Chambers
- Service Tax (Rate of Tax) (Amendment) Order 2024, P.U.(A) 64/2024 — general rate raised from 6% to 8% from 1 March 2024 — Attorney General's Chambers
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 20 Jul 2026 | Approved and published. | — |