HNP Business Solution

According to Service Tax Policy No. 2/2025 (Amendment 3), updated by the Royal Malaysian Customs Department (RMCD) on 23 January 2025, the following amendments have been introduced:
1. Tenants classified as Micro and Small Enterprises (SMEs) with annual sales not exceeding RM1,500,000.00 are granted an exemption from service tax on the acquisition of rental or leasing services.
2. A 2% service tax exemption on the applicable rental or leasing service tax rate is granted until amendments to the relevant subsidiary legislation are gazetted. This exemption takes effect from 1 January 2026.
3. Newly established Micro and Small Enterprises (SMEs) are granted a one-year service tax exemption on the acquisition of rental or leasing services. This exemption takes effect from 1 January 2026.

根据 服务税政策第 2/2025 号（修订版 3），由 马来西亚皇家关税局（RMCD） 于 2025 年 1 月 23 日 更新，引入以下修订内容：
1. 年销售额不超过 RM1,500,000.00 的 微型和小型企业（SME） 租户，在 租赁或租借服务的获取 上可享受 服务税豁免。
2. 对适用的 租赁或租借服务税率 提供 2% 的服务税豁免，直至相关附属立法的修订被正式颁布。该豁免 自 2026 年 1 月 1 日起生效。
3. 新成立的微型和小型企业（SME） 可在 租赁或租借服务的获取 上享受 为期一年的服务税豁免。该豁免 自 2026 年 1 月 1 日起生效。

As of 5 January 2026, the government has released a media statement announcing an extension of the relaxation period for Phase 4 taxpayers. Additionally, effective 1 January 2026, wholesale and retail building materials are allowed to issue consolidated e-invoices.

截至 2026年1月5日，政府已发布媒体声明，宣布延长第四阶段(Phase 4)纳税人的宽限期。此外，自 2026年1月1日 起，从事建筑材料批发及零售业务的纳税人获准开具合并电子发票(Consolidated e-Invoice)。

As at 7 December 2025, the government has revised the e-invoicing requirement, increasing the threshold to RM1 million in annual revenue. A strategic move to support small businesses and enhance overall compliance readiness.

截至2025年12月7日，政府已修订电子发票（e-invoice）要求，将强制实施门槛提高至每年营收100万令吉。此举旨在支持小型企业，并提升整体合规准备度。

A non-reviewable contract qualifies for service tax exemption for services performed during 1 July 2025 to 30 June 2026, provided all conditions below are fulfilled:
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A. Basic Contract Requirements
1. The service provider is registered for service tax.
2. The contract has no price review clause or any value adjustment mechanism.
3. The contract is in writing, signed before 1 July 2025, and stamped by LHDN before 31 December 2025.
4. The contract clearly states:
o (i) Type of service provided
o (ii) Fixed contract value
o (iii) Contract duration
5. The contract remains valid and in force after 1 July 2025.
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B. Variation Order (VO) Conditions
If the contract includes a VO, the exemption is still applicable until 30 June 2026 only if:
1. The VO does not change the overall contract value; and
2. The VO is put into a written document, signed before 1 July 2025, and stamped before 31 December 2025.
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C. Extension of Time (EOT) Conditions
If the contract includes an EOT, exemption applies until 30 June 2026 only if:
1. The EOT is based on the original contract that already meets conditions (A)(1)–(4).
2. The original contract value remains unchanged.
3. The original contract expires before 1 July 2025.
4. The EOT document is signed before 1 July 2025 and stamped before 31 December 2025.

非可调整合同在 2025 年 7 月 1 日至 2026 年 6 月 30 日期间的服务税豁免条件
若要在 2025 年 7 月 1 日至 2026 年 6 月 30 日 期间享有服务税豁免，非可调整合同须符合以下所有条件：
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A. 合同基本要求
1. 服务提供者必须已注册服务税。
2. 合同不得包含任何价格调整条款或价值调整机制。
3. 合同必须以书面形式订立，于 2025 年 7 月 1 日之前签署，并于 2025 年 12 月 31 日之前完成 LHDN（马来西亚内陆税收局）盖章。
4. 合同必须清楚载明：
o (i) 所提供服务的类型
o (ii) 固定合同价值
o (iii) 合同期限
5. 合同在 2025 年 7 月 1 日之后仍然有效并持续生效。
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B. 工程变更指令（VO）条件
若合同包含工程变更指令（VO），豁免将在 2026 年 6 月 30 日之前 继续适用，仅当：
1. 工程变更指令 不改变原合同总价值；以及
2. 工程变更指令已通过 书面文件落实，并于 2025 年 7 月 1 日之前签署，且 2025 年 12 月 31 日之前完成盖章。
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C. 工期延长（EOT）条件
若合同包含工期延长（EOT），豁免将在 2026 年 6 月 30 日之前 继续适用，仅当：
1. 工期延长是基于 已符合条件 A(1)–(4) 的原合同。
2. 原合同价值保持不变。
3. 原合同于 2025 年 7 月 1 日之前届满。