HNP Business Solution

Please take note that the e-Invoice implementation for Phase 4 taxpayers will apply to those with an annual turnover of RM1 million to RM5 million at 1st July 2026.

Taxpayers with turnover below RM1 million are generally exempt from e-Invoice implementation. However, this exemption does not apply where the taxpayer has a “Related Company” with annual turnover exceeding RM1 million.

In this regard, LHDN had issued the latest guidelines dated 22 April 2026 to provide further clarification on the identification of Related Companies for e-Invoice purposes.

请注意，第4阶段纳税人的电子发票（e-Invoice）实施将于2026年7月1日起适用于年营业额介于 100万至500万令吉 的纳税人。

年营业额 低于100万令吉 的纳税人一般可豁免实施电子发票。然而，如果该纳税人拥有年营业额超过100万令吉的“关联公司（Related Company）”，则该豁免将不适用。

对此，LHDN已于2026年4月22日发布最新指南，进一步说明如何在电子发票用途下识别关联公司。

Please be informed that there is a new official guideline issued by Kastam (RMCD) dated 17 March 2026 regarding Construction Work Services. This guideline is particularly relevant to businesses involved in the following activities:

1. Construction
2. Extension
3. Installation
4. Repair
5. Renovation
6. Relocation
7. Modification
8. Alteration
9. Refurbishment
10. Demolition
11. Facility management during the construction period
12. Construction of structures such as houses, offices, hotels, roads, bridges, jetties, and airports

This new guideline provides clearer explanations on the treatment of Service Tax within the construction industry. It also addresses several common practical issues faced by the industry, including:

1. Determining the value of building materials when separating the supply of goods and construction services
2. Clarification and calculation of mixed development projects (residential and non-residential buildings)
3. Determining the taxable service threshold for registration purposes
4. Service Tax treatment on repair and maintenance services during the construction period
5. SST treatment for registered manufacturers carrying out installation work
6. Service Tax exemptions for Federal and State Governments, including clarification that this does not extend to government agencies

We strongly encourage you to review and understand this guideline carefully to ensure compliance and to avoid potential penalties arising from incorrect SST treatment in your business operations.

Thank you.
Best regards,
HNP

请注意，*关税局（RMCD）*已于2026年3月17日发布了有关建筑工程服务的新官方指南。此指南特别适用于从事以下相关业务的企业：
1. 建筑工程
2. 扩建工程
3. 安装工程
4. 维修工程
5. 翻新工程
6. 搬迁工程
7. 改造工程
8. 更改工程
9. 整修工程
10. 拆除工程
11. 建设期间的设施管理服务
12. 建造各类结构，如住宅、办公楼、酒店、道路、桥梁、码头及机场

该新指南对建筑行业的服务税处理提供了更清晰的说明，同时也涵盖了业界常见的实际问题，包括：

1. 在分开提供建筑材料及建筑服务时，如何确定建筑材料的价值
2. 混合发展项目（住宅与非住宅）的定义及计算方法
3. 应税服务注册门槛的判定方式
4. 建设期间维修与保养服务的服务税处理
5. 已注册制造商进行安装工程的销售与服务税（SST）处理
6. 联邦政府及州政府的服务税豁免说明，并明确不包括政府机构

我们强烈建议各位仔细阅读并充分理解该指南，以确保业务操作符合规定，避免因错误的SST处理而导致的潜在罚款。

谢谢。
此致
敬礼
HNP

https://mysst.customs.gov.my/assets/document/Industry%20Guides/GI/Guide%20on%20Construction%20Work%20Services_english%2019032026%20(1).pdf

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)。